Regulations and how to get the gambling license
The only way you can provide gambling services legally in countries is to have a license. If you don’t have an operating license for your casino games, you will have problems opening a bank account and even putting games on your casino site. There are also other benefits of obtaining a gambling license, one of which is a reduction of taxes. Another thing to note is that even though some licenses are recognized in multiple jurisdictions, they may not apply to all countries. You will need to find out what regulations or legal systems are set up in some countries concerning gambling.
Getting a gambling license builds trust and will eliminate suspicions about whether games are rigged. The gambling authority ensures that the licensed casino audits its random number generator and will issue a compliance certificate. As of today, you can have your casino obtain a license from the following countries:
Many online casinos today have obtained gambling licenses from the Curacao Gambling Commission. There are a lot of advantages to getting licensed by them, and the processing is done very quickly. It should take about two months to process if you have met all the requirements. Also, another benefit is that the ongoing expenses for Curacao are low. One of the criteria for obtaining their license is that you will need to place servers in the Curacao territory. They also have a very attractive tax system of just 2% corporate tax rate, and its master license fees are not more than $150,000.
The Kahnawake Gaming Commission was established in Canada in 1996, and they are responsible for licensing online casinos. This commission issues four types of licenses which are stated in their regulations. If you intend to provide your online casino games to Canadians, you will need to operate from the hosting facility in Kahnawake and you will be issued a Client Provider Authorization License. The initial fee for one year costs $40,000, while you will renew at the rate of $10,000 per annum. You will also need to pay a software inspection fee of $15,000.
Malta Gaming Authority is also another licensing body. They offer two packages: the B2B and B2C licenses which are valid for 5 years. The good thing about obtaining this license is that their license is under the whitelist of the UK Gambling Commission, so you can provide your online casino services to British players. The major requirement to obtain this license is to provide financial statements. You will also be required to prove that you have a secure platform for players’ personal data and a responsible gaming policy.
The license can be processed within three to four weeks from the date of application. You will also need to get a temporary license first, which will be valid for 6 months and when all investigations are completed, you will be given the 5-year license. The breakdown of the tax charged is:
- 1.25%- profits not exceeding €3,000,000
- 1% – for profits within €5,000,000
- 0.70% – for profits within €7,000,000
- 0.55% – for profits within €10,000,000
The Gibraltar license can be obtained after casino owners provide proof of financial solvency. You will also be required to submit a business plan and show evidence that you have funds to pay winners as well as safe payment processors. You will need to go through the Gibraltar banks and after obtaining the license, you will pay a 1% annual profit which should not be less than £85,000.
United Kingdom Gambling Commission
The UK Gambling Commission is the largest of all the licensing authorities mentioned. They require a comprehensive business plan and also proof of solvency. You will also provide proof that there are no criminal records or convictions and proof of funding. Online casinos will be required to pay a special tax between 15% and 50% of their gross profits. The cost of obtaining the license is not always stable as the price keeps going higher. However, a new policy that took effect from October 1, 2021, states that the DCMS will publish a 55% increase in the annual licensing fees for remote online casinos.
Apart from these gambling commissions, other jurisdictions where you can get an operating license include Belgium, Alderney, Denmark, Isle of Man, and many other countries. It is important that you get the licenses of the jurisdiction you intend to get players from so you do not violate any legislation.