Do you want to start your own online casino? Obtaining an online gambling license is a must in that case. The various regions in the world all have their own specific laws regarding licensing and regulation of online gambling sites. These regions are also called gambling jurisdictions. In this blog, you will learn about the conditions and requirements with respect to licensing and we will have a look at the different regions that can grant these licenses.
Your gambling site must largely carry out its activities in the area where you want to obtain the license. Some preconditions:
- Choose areas or countries that match your needs and look at the characteristics of the different gambling jurisdictions. Pay attention to the requirements, possible costs, application processing time and tax policies. If necessary, consult a lawyer;
- Prepare all your personal documents in advance. You will need a copy of your passport, a criminal background check, proof of address and a reference from your bank;
- Make sure the software you use for your casino meets the requirements of the jurisdiction;
- Provide sufficient information on your website as required by the jurisdiction.
Most licensing jurisdictions have a list of rules that online gambling companies must abide by. Requirements could be:
- Random Number Generator software should be tested and validated periodically;
- Gaming software must display elapsed playing time;
- Maintain records of payouts to players (return to player) for each game;
- Set a limit for deposits;
- Offering good support via e.g. email, live-chat or telephone;
- Conducting a fit-and-proper-person test for owners and management.
Here it is possible to obtain an online gambling license within 6 weeks. You also have the choice to apply for a master or sublicense with application costs of approximately € 2,000. For licence support, you pay an additional €1,500. Is your gambling company based in another country? No problem! In this case, it is possible to apply for an Ezone-license. You benefit from a low net corporate tax rate (2%) and 0% tax rate on gross bets.
The jurisdiction of Malta can be considered the world leader when it comes to granting a online gambling license. In granting licenses, they have created four classes. Class 1 is for online gambling / table games, while class 2 covers pool and sports betting. Class 3 you refers to poker rooms and class 4 involves licenses which are granted to sellers of gambling software who want to manage operators at a distance.
The costs for classes 1 to 3 amount to approximately € 25,000 per year. An annual license for the class 4 amounts to approximately € 10,000.
Antigua and Barbuda
Applying for a license in Antigua and Barbuda is a little more expensive and can take a bit longer compared to other regions. The application process takes about two months on average, the application fee will take about $15,000. The annual costs for a permit amount to $100,000. There are two options for obtaining a license. First, a license for gambling (including online casinos), second, a license for interactive betting (including sports betting).
Isle of Man
Isle of Man offers three different gambling licences for operators:
- Full license;
- Network Services license.
The costs of the first time application for both the full license and the sub-license amount to £ 5,000. In the subsequent years, you pay £ 35,000 for a full license and £ 5,000 for a sub-license. With a full gambling license you make it possible for yourself to operate gambling activities.
Applying for a license will take about 10 to 12 weeks. Your gambling business must be registered in the Isle of Man and all associated servers must be hosted there. There is a 0% corporation tax and approximately 0.1 to 1.5% gambling tax depending on gross profit.
The Network Services license can be useful if an operator wants to allow more foreign players on the server in the Isle of Man without having to register the player data again. The costs amount to approximately £ 50,000 per year.
This gambling jurisdiction is extremely regulated and very reliable. You pay approximately $ 132,000 per year for a license. No distinction is made between (online) casinos or sports betting.
For more information look at: https://casinoorbit.com/betting-utan-licens/