Let’s speak about the gambling license notion, advantages that the official permit brings to gambling platforms, and ways to obtain it.
What is a gambling license?
A gambling license for an online casino is an official document that allows the gambling site to conduct gambling activity. Obtaining a gambling license is obligatory for the legal operation of an online casino and it provides a number of benefits to the site. The official permit to conduct gambling business is a mark saying that independent auditors control the casino, all transactions are secure, and there is a guarantee that winnings are paid out. In such a way, a gambling license ensures a reputation of the reliable site and as a result attracts new users and develops business.
Who issues licenses?
Different agencies have the right to issue licenses for gambling platforms. As a rule, permits are given by special gambling commissions, different departments and ministries, each of which has its own requirements to gambling business owners.
The commission checks whether an online casino complies with regulative standards. The gambling site has to provide financial documents and data about casino structure. Besides, the commission analyzes information about gambling business owners – it is important that they had experience in the organization of the gambling activity and were not engaged in illegal activities.
A license can cover all gambling activities or one category of gambling – the type of license depends on the jurisdiction. International licenses allow working in different countries, and local licenses – on the territory of just one country.
How much does an online casino license cost?
The cost depends on the type of activity and chosen jurisdiction:
- Gibraltar – from $30,000 to$70,000.Annual reissue costs $3,000.
- Curacao – the price starts from $40,000. Annual reissue costs $15,000.
- Costa Rica – the price starts from 40,000. Annual reissue costs $10,000.
- Malta – the licensing fee is €25,000, request to process the application – €2,300, and license reissuance – €1,500.
How do online casinos obtain licenses?
Prior to submitting for a gambling license, it is important to analyze jurisdictions attentively. Factors important for consideration are reputation, geo location, taxation system, and requirements of the state.
Gibraltar gambling commission sets strict requirements to owners of gambling platforms, so it is difficult to obtain a license in this jurisdiction. However, for this reason Gibraltar license is highly appreciated and increases user trust in the platform.
Curacao Island offers beneficial terms of online casino licensing. Advantages of this jurisdiction is the possibility to collaborate with European banks, quick obtaining of documents, and assistance with technical issues provided by local institutions.
Costa Rica does not issue a gambling license but offers a permit for data processing that allows running gambling business. This jurisdiction is tax-free and the government ensures stable economy and legal support.
Malta is one of the most beneficial jurisdictions for obtaining a gambling license. It sets strict requirements to gambling sites. A license obtained in Malta can guarantee that the business will have a prestigious status, wide opportunities for development, enjoy low taxes and support from the state.
Why obtaining a license is beneficial?
Gambling license acquisition is a difficult process that demands compliance with a great number of regulative requirements and financial investments. However, online casinos with an official permit for operation enjoy popularity among players, guarantee reliability and security and receive a possibility to develop legally.