Online Gambling Licensing
Online casinos have proven to be immensely popular and lucrative, providing players with authentic gambling experiences as well as creating large profits for their owners. With the rapid expansion of online gambling, corruption of online casinos became a major concern for both players and casino owners.
Following the proliferation of criminal activity in online casinos, the gambling community sought a way to standardize and regulate online gambling.
A number of online gambling licensing organizations were set up to tackle the problem, and online gambling licenses are now issued by a number of governments worldwide. However, online gambling is prohibited in a number of countries, and therefore online gambling licenses often arise in offshore countries.
Despite that fact that obtaining a gambling license is a complex process involving research and certification, most Internet casino businesses possess an online gambling license. Online gambling licenses ensure the legitimacy of an online casino business, as they involve regular assessments of the company's conduct.
All legal online gambling businesses possess an online gambling license in at least one jurisdiction. The most recognized jurisdictions that issue gambling licenses are Caribbean and Pacific Island Governments such as Antigua and Barbuda, Costa Rica, St Kitts, Dominica, Curacao and Vanuatu.
The following jurisdictions issue gambling licenses:
Alderney — The Alderney Gambling Commission (AGC) voted in 2005 to allow a "free market approach towards e-gambling", thus enabling the jurisdiction's licensees to accept bets from players in all other countries, including the United States.
Austria – Austria is renowned for its rigorous restrictions in terms of online gambling legislation. According to the Austrian national laws the licenses are granted only to Austria-based companies to offer remote lottery and casino gaming services.
Australia — The jurisdiction was a pioneer in establishing a regulated Internet betting environment and today regulates the provision and advertising of interactive gambling services at federal level through the Interactive Gambling Act of 2001.
Belgium — The laws governing the gambling industry in Belgium are very strict. At the same time online gambling tradition is really strong, so any licensed casino operator can get their share of success on condition they always act legally.
Belize – Online gambling in Belize is a relatively new industry, however, it is conducted within its own legislative framework under the Gaming Control Board, which makes Belize one of the most reputable jurisdictions that maintains high online gaming industry standards.
Costa Rica — Costa Rica has become a home jurisdiction for more than 200 online gambling companies and 300 gambling websites, making it one of the most popular gaming jurisdictions.
Curaçao & Netherlands Antilles — In 2002 Curacao Gaming Control board made online gambling a central industry for the island of Curacao, thus expanding the island's licensing capabilities.
Dominican Republic — Even though the Dominican Republic is not considered a traditional offshore jurisdiction and a taxation haven it offers beneficial business opportunities for international companies.
Estonia — Estonian online gambling market is relatively immature but it has the potential for quick development. The main peculiarity of the licensing process in Estonia is the necessity to obtain 2 licenses – activity license and operating license.
Gibraltar — Situated at the southernmost tip of Europe, Gibraltar provide licenses to twenty operators under the Gambling Ordinance that denotes the borders of the online gambling legislation in Gibraltar.
Isle of Man — This is a model country for online gambling due to the legislative framework set by the Electronic Transactions Act of 2000 and the Online Gambling Regulation Act of 2001, which legalised e-gaming operations in the country. The Isle of Man is acknowledged as one of the most reputable white-label jurisdictions, offering the best infrastructure and services for online gambling.
Italy – Since 2006 Italy has significantly moved forward in terms of online gambling regulation. The Autonomous Administration of the State Monopolies (AAMS) is entitled to manage all gambling matters, from issuing gambling licenses to enforcing legal aspects of gambling.
Malta — Following the Public Lotto Ordinance Act in 2000, Malta the first EU member state to introduce Remote Gambling regulations and deliver remote gambling services for online gambling.
When choosing your jurisdiction, you should consider taxation and licensing costs as well as the strengths and weaknesses of the licensing laws and technical standards.
New Perspective of Online Gambling License
Online gambling licensing has become a new landmark in online gambling industry. The idea of introducing the practice of online casino licensing was targeted primarily at improving the quality of online casino services delivery and has finally turned into a prerequisite for conducting legal gambling business online.
By obtaining an online gambling license, an online casino certifies that it adheres to the accepted standards of online casino conduct. Licensing also ensures that there is no misconduct within an online gambling website, thus gaining the trust of players and therefore increasing the success of the website.
Obtaining a gambling license removes any legal, reputational or bureaucratic barriers that might get in the way of you running your business. Here are the reasons why obtaining a license is the core of you online gambling business success:
- USERS' TRUST. Reputation is integral to the success of an online casino business. Licensed online casinos appear more reliable, secure and legitimate to prospective players.
- PAYMENT PROCEESSING. Most banks require a gambling license when you set up an account for your business to make sure you are a reliable partner. You will not be able to receive payments from bank cards without a license.
- LEGAL ASPECT. It is illegal in most countries to conduct any gambling activity without a license. This can result in business termination and legal convictions.
High standards are required of an online casino business in order to gain a gambling license. Failure to meet all requirements of a regulatory body issuing gambling licenses will prevent a gambling business from gaining one. This ensures that all gambling websites that obtain a license in a reputable online gambling jurisdiction are of the highest quality.
Online gambling licensing has had an unprecedented impact on the online gambling community. It has restored the positive image and reputation of online gambling and regained players' trust and confidence. Moreover, the quality of the online gambling services delivered to players has grown enormously.
To find out more about the licensing procedure, the requirements and fees involved, please refer to our Licences section.
Selecting a jurisdiction for casino licensing is a challenging task. If you are not sure about which jurisdiction is more suitable for your gaming business contact us and we'll help you make the right choice.