Table of Contents
- How to Get a Gambling License
- What Is a Gambling License
- Why Do You Need a Gambling License
- Types of Gambling Licenses
- Top Countries to Get a Gambling License
- How to Get a Gambling License: Step-by-Step
- How Much Does a Gambling License Cost
- How Long Does It Take to Get a Gambling License
- Requirements for Obtaining a Gambling License
- Common Mistakes to Avoid When Applying
- How SoftGamings Can Help You Obtain a License
- FAQs About Gambling Licenses
How to Get a Gambling License
With the online gambling industry continuously strengthening its position and demonstrating sustained growth, there has never been a better time to become one of the key players. However, in order to do that, you’ll need to prove your status in the industry with legitimate operations and by following established industry rules. The first step is obtaining a gambling license.
By doing that, you will gain recognition and the trust of potential players, expanding your reach at the same time. There are more reasons why obtaining a gaming licence works in your favour, and this article will explore these benefits and outline the process for obtaining one.
What Is a Gambling License
An online gambling licence is an official authorisation granted by a government authority or regulatory body, allowing an operator to legally offer gambling services such as casinos, sportsbooks, and poker rooms. That way, operators are granted legal status and ensure they follow regulatory standards, maintaining compliance with the law and aligning with general industry practices.
Having that stamp of approval on the homepage of your site is what makes or breaks an online gambling platform. It guarantees a high quality of services and reassures users that they are using the services of reputable operators that will not only protect their sensitive data, but also pay out the winnings.
Why Do You Need a Gambling License
If you want to operate legally and ethically in the online gambling realm, you need to obtain a gambling license issued by a reputable gambling jurisdiction. Getting the license is the bridge between your platform and working with e-payment system providers. Without payment methods, you cannot promote your platform and get more sign-ups.
Aside from that, there are a few other aspects that come along with the license:
- Making deals with top-shelf software providers to offer popular and highly requested online games
- Good word travels fast — a high level of trust and reliability that comes from players
- Better SEO ranking due to white hat marketing methods
- Responsible gambling practices to ensure player safety and controlled practices
- Deals with banks and merchants that offer online payment services
With so many benefits, the only logical step is to start the process of obtaining a gambling license. But there comes the question — which gambling license to pick?
Types of Gambling Licenses
Since no uniform rules and regulations govern online gambling and betting, you must first consult your country’s regulations on these practices to know how to proceed. Your next decision is what highly impacts your decision on which type of gambling license you’ll obtain. The question is — will you operate only in a specific country, or will you cater to multiple markets?
Once you know the answer, you’ll need to make a choice between one of the two licenses:
- National license – Allows the platform to operate locally, adhere to that location’s rules and regulations
- International license – An offshore license that allows the platform to operate internationally, opening its doors to numerous countries
Some operators prefer not to focus only on one market, so they opt for a solution allowing them to expand their global reach. That’s where an internationally-acclaimed license gets the job done. Also, some jurisdictions allow operators to grab an all-in-one license, allowing them to cater to both casino players and sports bettors.
Top Countries to Get a Gambling License
If you choose to expand your operations globally, finding an offshore legislator shouldn’t cause that much trouble. However, you first need to know what goes into evaluating where your company should put down roots. Matters like taxes, privacy, reporting, accounting, and payment-related issues all have an impact on your decision. We’ll go over the most popular options for gaming jurisdictions.
Curacao
Arguably, the most popular and well-known offshore gambling license comes from Curacao. Why? One key factor that plays a role here is the questionably low corporate income tax of 2% for companies registered in Curacao’s designated economic zones. This license is perfect for those wanting to go through the process quickly without taking a chunk out of their budget. Not only that, but Curacao holds a high level of trust in the industry.
| Pros | Cons |
|---|---|
| 4-6 weeks processing time | Limited access to regulated markets |
| No VAT, gaming duty, or withholding tax on dividends | |
| All-in-one license coverage |
Kahnawake
As the first jurisdiction to enact regulations in 1999, Kahnawake is always a reliable and secure option for online operators looking for international acceptance. It offers a less demanding process than most other jurisdictions and provides a zero tax rate, which is not only essential but relatively rare in this industry. It carries a high reputation in the industry and offers high-level player protection and a low-cost application for applicants.
| Pros | Cons |
|---|---|
| Quick registration process up to 8 weeks | 6-month license probation |
| One license for multiple types of gambling | |
| Well-known global jurisdiction | |
| More than 250 casinos and sportsbooks are operating at the moment |
Tobique
If you want to skip over the lengthy bureaucratic processes and go live quickly, the Tobique gaming license is the way to go. Although it’s yet to reach the heights of some of these other names, Tobique still has a reputation worth the hype in the iGaming industry. Operators appreciate the opportunity to focus more on what players look for in crypto-based gambling that this license carries along. Moreover, it’s the perfect option for startups, so keep an eye on this if you fit that gap.
| Pros | Cons |
|---|---|
| Single license for a wide range of gambling activities | Not that well-known |
| No strict local presence rules | |
| Simple application process of 4-8 weeks | |
| AML/CFT regulation compliance |
Malta
For those with a firm footing in the industry, a Malta Gaming Authority license means a lot. It is generally considered a prestigious name in the industry and shows users that it operates transparently under EU regulations. The jurisdiction has been active since the early 2000s and offers favorable tax benefits and an easier way to do business with banks and other payment providers. A B2C license is more popular for operators looking to get an MGA license, but there’s also a B2B license you can obtain from this jurisdiction.
| Pros | Cons |
|---|---|
| Prestigious name in the industry | Lengthy procedure |
| Accepted by EU countries | |
| Regular license audits | |
| Low tax benefits – around 5% |
How to Get a Gambling License: Step-by-Step
It doesn’t hurt to know the ins and outs of obtaining a gambling license. Therefore, here is a general step-by-step process of obtaining a gambling license to prepare you for the real deal.
- Pick your target market – Decide whether you want to focus solely on one region (Europe, Latin America, etc.) or take your business internationally.
- Choose a licensing regulator – Depending on your previous decision, pick one of the licensing jurisdictions we mentioned above or find one that suits your needs.
- Prepare the required documentation – Make sure you have a business plan. That includes software provider and game information, AML/KYC policies, technical setups, and proof of funds.
- Incorporate your company – In most cases, you’ll need to form a company in the jurisdiction that will issue your license.
- Submit your application – Submit the form and needed documents. You’ll also need to pay the application fee before waiting a few weeks for the regulator review.
- Integrate software providers – To meet jurisdiction requirements, your platform must feature only licensed providers who have already met RNG testing standards, API integration, and fairness and anti-cheating protections.
- Implement AML/KYC policies – You need to make sure you follow all regulatory policies that are in place to protect the players, like responsible gambling, age and identity verification, and more.
- Maintain and renew your license – Don’t forget to submit regular reports and audits. Also, pay your annual fee and keep up with regulatory changes to stay compliant.
How Much Does a Gambling License Cost
Many factors impact the cost of an online gambling license. Not only does the jurisdiction itself play an essential part, but also the structure of your company, the scope of operations, the number of games, and the software providers, if you’re focusing on online casinos, regulatory requirements, and revenue projections. Since a lot goes into that, the whole ordeal could look confusing
To give you a rough count, to obtain a license in Curacao, for example, would set you back about $15,000 to $25,000. On the other hand, jurisdictions with a greater impact in the industry, like the MGA, would cost you $36,000 to $55,000. Keep in mind that annual renewal fees also go anywhere from $20,000 to over $100,000, depending on the jurisdiction.
How Long Does It Take to Get a Gambling License
Plenty of factors affect the timeline of obtaining a gambling license. Aside from the jurisdiction rules themselves, the quality of your application also affects a part of the process. In contrast, things like technical testing, local company setup time, and due diligence process also play an essential part.
One of the shortest waiting periods for obtaining a license is in Curacao, where you’ll need to wait two to six weeks. In contrast, Gibraltar has one of the longest processes, where you can wait for over a year to receive your gambling license. The MGA falls somewhere in the middle, with three to six months to start operating your online gambling platform.
Requirements for Obtaining a Gambling License
You will need a lot of hands-on experience to complete all the gambling license requirements. These sets of legal, financial, technical, and operational requirements differ depending on the jurisdiction, but some of the core ones you should know are:
- Clean bill of corporate backgrounds – No criminal record, no previous gambling violations, no fraud or bankruptcy red flags.
- Incorporation of a local company – Jurisdictions like Curacao and Malta require you to form a legal entity within their territory.
- Proof of financial stability – You will need evidence of startup capital (anywhere from $50k to $500k, depending on the license), business plans, and economic forecasts.
- Hosting and IT infrastructure – Your servers must be hosted in your jurisdictions or pre-approved data centers.
- Compliance reporting systems – You must submit regular compliance and audit reports, track marketing and bonus abuse, and generate reports for player activity.
On top of that, the jurisdiction you’re applying to will also need to see some of the things we already mentioned, like approved gaming software, AML/KYC policies, and any additional application documentation they might require.
Common Mistakes to Avoid When Applying
Since this is a highly stressful and complex process, you should be prepared to make a few mistakes along the way. Hopefully, they won’t be big ones that would prolong the process, so here are a few red flags you should keep an eye on:
- Not completing your documentation throughout and providing false information
- Not having detailed and realistic policies when it comes to compliance requirements
- Nor partnering with certified gaming provider vendors
- Not meeting or exceeding the minimum capital requirements
- Not having a specialized legal or licensing consultant
- Not setting up reporting systems from the start or avoiding appointing a compliance manager
Ensure you understand what regulators expect from you, because most applications fail due to incomplete documentation, vague business models, or inadequate compliance planning, not because the business idea itself is bad.
How SoftGamings Can Help You Obtain a License
With so many regulations and paperwork jumping out from every corner, navigating the process of getting an online gambling license can be a slippery slope. That’s where SoftGamings can make a difference. We help you determine which licensing jurisdiction fits your business best, whether it’s Malta, Curaçao, or elsewhere. We don’t only provide great and helpful advice. Still, we can also hold your hand through the application process to help you prepare the essential documents, confirm that your AML and KYC policies are in place, and liaise with regulators to keep things moving at a pace you want to see.
If you want to jump right in, SoftGamings also offers white-label options to launch under an existing license without the wait. Regardless of how you want to approach it, having professional support can save you time and avoid all the usual pitfalls.
FAQs About Gambling Licenses
An online gambling license is an authorized permission from a regulatory body that qualifies a company to offer gambling services online legally.
You need a gambling license if you want to comply with legal standards, protect players, and build trust with users and payment providers.
The process of obtaining a gambling license depends on the jurisdiction of your choice; it can be anywhere from 2 weeks to over a year.
Yes, if you opt for a jurisdiction that offers international services, you can likely operate in multiple regions with one license.
The cost of a gambling license can go from as low as $15,000 to as high as a couple of hundred thousand dollars. It all depends on the jurisdiction, your operation, and the overall scope.
