Everything you need to know about international gambling licenses

AFFHUB is here! Today we decided to devote an article to gambling licenses.

This topic is quite relevant, as a huge number of media buyers work in this vertical. 

Why are licenses needed, what do they give operators, which ones are the most popular in the world, and more — read about it in this article.

Gambling licenses: What are they, and why are they needed? 

A gambling license is essentially an official document from a government that grants operators the right to engage in gambling activities without running into unnecessary legal problems.

There are universal and specialized licenses.

Universal: the right to work with all types of online gambling.

Specialized: limited to a specific list of permitted services.

What do you need to provide to obtain a license?

• A detailed business plan
• Information about beneficiaries
• Company financial reports 
• Documents about software
• Data on the gaming platform
• Audit reports

What are the advantages of a license?

The fact is that a license can be called a “green light” for players. Since many of them pay attention to the availability of licensing before starting to play on a particular platform. This significantly enhances the brand’s reputation and inspires more trust in users than some obscure underground site.

How can you tell if an online casino is licensed?

To check if a casino is operating legally, you need to:

• Find information about the license at the bottom of the website
• Check the license number and company name 
• Check which games are allowed
• Check the information on the regulator’s website

If the information does not match or is simply missing, then you should think twice about whether it is worth working with this platform 😉.

A licensed operator has the opportunity to obtain:

• cooperation with leading game developers
• access to bank accounts and payment systems
• the right to advertise
• a good reputation and user trust

If an operator decides that the law is not an obstacle for them and operates without a license, they risk encountering a number of problems.

For example: website blocking, penalties, asset freezing, and finally, full criminal liability.

International gambling licenses: which ones are the leading ones?

Let’s start with the fact that international licenses apply to countries where there is no direct ban on gambling. 

Sometimes they completely legalize the activities of operators, and sometimes they do not significantly affect it. 

Gibraltar

Gibraltar is a small island belonging to the United Kingdom. It is also called the “gambling capital” because a very large percentage of the population is involved in this industry.

The Gambling Act 2005 is the basis for the regulation of gambling. 

There are two main organizations in Gibraltar that oversee compliance with the rules: the Gambling Commission, which issues licenses to operate, and the Gambling Commissioner, who checks that everyone is working in accordance with the established requirements.

There are six types of licenses. Four of them are specifically for online operations. 

Type 1 — a license to open an online casino.

Type 2 — a license to operate a bookmaker.

Type 3 — a license to act as an intermediary between players and bookmakers.

Type 4 — permission to develop software for the gambling industry.

There is a list of steps that must be taken to start legal work in this niche:

• Submit an application and pay a fee of £10,000.
• Open a company and a bank account in Gibraltar.
• Drawing up a detailed business development plan.
• Proving your experience in the gambling business.
• Open an office in Gibraltar and appoint a local director.
• Implementation of a customer verification system and provision of information about the actual owners of the company.
• Obtaining all necessary documents for slot machines and software.
• Creating a financial reserve for player payouts.
• Developing rules for the game in question.

Well, just a couple of hours of work (no).

The Gibraltar license is valid for 5 years. Companies that work with players must pay £100,000 annually. 

If the company is technical and provides software, the annual fee is £85,000.

Curaçao

This jurisdiction used to be a leader, but due to numerous scandals, the licensing system has undergone certain changes.

The CGA (Gaming Control Authority of Curacao) operates here. Now the application review period has increased and takes up to 8 weeks.

The requirements for license applicants have also been tightened.

Currently, the cost of licensing in Curacao is approximately €60,000. Don’t forget about the initial deposit of €20,000 and monthly payments of €4,000.

Operators are charged a tax of 2% of net profit. 

The license still allows you to work with all types of online gambling.

Malta

Currently one of the most reputable jurisdictions. 

Tax rates are quite high here, but it is still popular among online gambling operators.

Obtaining a license consists of:

• registering a Maltese company
• contributing share capital in the amount of €40,000 to €240,000 and paying a registration fee of €5,000
• passing a comprehensive check, which is not available to every applicant

The MGA (Malta Gaming Authority) has two main types of licenses: 

• B2B for business solutions
• B2C for working with end customers.

The annual fee starts at €25,000, but taxation, which depends on the company’s income, should also be taken into account.

Kanawake

Kanawake is a jurisdiction located in the Canadian province of Quebec. It is one of the major centers for gambling regulation in North America. 

The KGC (Kanawake Gaming Commission) oversees the activities of operators.

The jurisdiction regulates both online and offline gambling activities. 

Each type of gambling activity requires a separate type of license.

The most common type is the CPA license. It grants the right to conduct activities in the field of interactive games. This is suitable for operators working with online casinos or bookmakers.

The licensing cost includes:

• an initial fee of USD 40,000
• an annual payment of USD 20,000

The license is valid for 5 years, and in order to renew it, the company must pay USD 5,000.

The United Kingdom

The British market is far from being the last in the field of online gambling. 

Since 2014, mandatory licensing through the UKGC (UK Gambling Commission) has been in effect.

This includes:

• obtaining a UKGC license
• paying a 15% tax on income
• having the necessary infrastructure in the UK

In summary

As you can see, licensing is a very important step for any operator starting out in the gambling business.

Many want to bypass this step because it requires a lot of time, money, etc. However, will such activities generate profits and work properly for long? We don’t think so.

A license is a way for companies to operate safely and not worry about possible legal problems.

It is also a way for players to have fun and not worry about being cheated by a dubious platform.