An online casino owner must obtain a license to legally offer gaming services such as sports betting, lotto, poker, and online bingo . Its absence makes it difficult for an online platform to operate successfully. The operator is unable to open a bank account or even add games to their site. That’s because the operator needs to sign a contract with a gambling software provider, which they won’t be able to do without a license. Furthermore, a gambling license comes with a lower tax rate and other advantages.
Since some countries’ legal structures prohibit online casino games in whole or in part, obtaining a gambling license does not guarantee that it would welcome a new operator.
Furthermore, local legal laws may be contradictory. A country that previously had no problems with online casinos may pass legislation prohibiting gambling sites from operating on its territory. For example, until February 2017, Australia was a popular destination for online casinos because Australians were thought to be the most gamblers, according to a 2018 study by Australasian Gaming Expo. This large sum of money was bypassing the local budget and heading to international casinos.
The Interactive Gambling Amendment Act 2017 made it illegal for international casinos to operate in Australia without a special Australian license, causing many gambling businesses to leave the country.
The Value of Gambling License for an Online Casino
A gambling license increases player trust and alleviates fears about “rigged” RTP (Return To Player) percentages in slots and the non-payment of large winnings. The explanation for this is that a licensed casino’s random number generator is audited regularly. The findings of the audit are used to issue a compliance certificate. In general, gambling websites provide licensing information in the footer. Experienced players often scroll down to see the jurisdiction where the site was approved on their first visit.
Owners of online casinos face a challenging task in selecting a reputable jurisdiction that issues licenses that are valid in various countries. Currently, the options are restricted, and gambling business owners must obtain permits in one of the following countries or territories:
Gibraltar
Local gambling law is intended to provide casino operators with a tax benefit when doing business and retaining a high degree of reputation in Gibraltar, one of Europe’s most economically desirable jurisdictions.
To acquire a Gibraltar license, online casino platform operators must demonstrate financial solvency, submit a business plan, and agree to conduct all transactions through Gibraltar’s banks. Those who possess a license must pay 1% of their annual earnings, but no less than £85.000.
Curacao
The benefits of this tiny Caribbean island include a 0% tax rate on casino income, a quick licensing process (typically 1.5-2 months), and low ongoing costs. A casino platform owner must install computing power (servers) on Curacao’s soil. Curacao’s tax scheme is appealing because the online gambling industry contributes significantly to the island’s budget.
Obtaining a valid gaming license is a top priority for every online casino. The MOA Gaming License Service is a credible solution that can provide a legal foundation for running an online casino and performing various gambling and betting activities.
Malta
For five years, the Malta Gaming Authority issued two forms of licenses (B2B and B2C). The UK Gambling Commission’s “white list” includes operators who have received a coveted Maltese permit, allowing them to sell their services to British players. Operators must comply with various standards, including filing financial statements, maintaining the security of players’ personal information, and developing a Responsible Gaming Policy.
The licensing process is divided into several stages: the Authority considers an application (which takes 3–4 weeks). The casino receives a six-month temporary license. Following that, a five-year gambling license is granted based on the findings of a thorough investigation.
The MOA Gaming License Service specializes in acquiring the Maltese gambling license.
Kahnawake
In terms of law, Canada is known for its liberal approach toward gambling. The Kahnawake Gaming Commission was established in 1996, and among its responsibilities is to issue licenses for online casinos. The initial annual license fee is $40,000, followed by a $15,000 software inspection fee and a $10,000 yearly license renewal fee.
Other Gambling License Providers
Apart from the jurisdictions mentioned above, online casino platform operators can also get a license from the United Kingdom, Alderney, Macao, Belgium, Denmark, the Isle of Man, and a few other nations. Obtaining a license would allow a gambling operator to work per applicable laws and regulations, attracting players through complete transparency, the security of financial transactions, and the fairness of the gambling process. Licensing encourages players to stay loyal. A client of the no UKGC licensed casinos platform should be sure that every turn of the reels and every blackjack hand are calculated by a random number generator system that leaves no room for fraud or software manipulation.
