Online Casino License: Why Operators Need It and How to Choose It
Casino license is official permission to run a gambling business, issued by the special commission. It allows online casino operators to easily work with the software providers and payment systems, as well as to expand their business in the many markets.
If operators want their online casinos to be legal, credible and attractive to players, obtaining an online casino license should be the number one priority.
Why do operators need a license?
Licensed online casinos have a full list of advantages such as business security, reputation, and a possibility to participate in legal commercial activities. There are several reasons why operators need to have a license in order to develop a successful online gambling business today:
- Business partners. All the leading software and game providers demand a license from the operators. Apart from that, all reliable payment systems require an official license as they only cooperate with gambling platforms which work legally. If the popular payments systems and games are not present on the platform, players are unlikely to join the online casino.
- Players’ trust. Internet market is considered to be a highly competitive environment these days, and players do not want to gamble on shady platforms operating without a license. Therefore, while choosing a website for gambling, users pay attention to the license because they see it as a guarantee of safety and honest financial operations.
- Business growth. In order to run a successful business and enter the most profitable markets, such as the European market, it is necessary to have a license. Operating in certain jurisdictions without a gambling license is prohibited and persecuted.
Requirements to get a license
Licensing requirements differ in various jurisdictions. Some countries only require basic documents and set relatively low prices, while others demand a huge amount of papers as well as set high taxes and license costs.
In general, to get a gambling license, operators should:
- pay an application fee;
- provide a criminal record;
- provide passport scans and various personal details;
- open a bank account;
- prove a domain possession;
- provide games description;
- establish a legal entity;
- provide corporate company documents;
- provide a business plan.
The amount of necessary documents and additional payments differ depending on the chosen jurisdiction.
How to choose a jurisdiction to get a gambling license?
Today, more than 80 countries allow gambling activities within their territories. When choosing a gambling jurisdiction, operators should focus on the following factors:
- the geographical spread of online casino players;
- the tax system of the selected jurisdiction;
- the licensing cost.
Then, before applying for a license, Slotegrator recommends:
- To turn to a gambling lawyer for assistance. The Slotegrator's lawyer has explained why it is important to get a consultation with a specialist:
“One of the main advantages of consulting with a lawyer is that the expert can help to choose the right jurisdiction. Obtaining a license in a suitable country will help operators to find business partners, providers and customers, as well as simplify the opening of bank accounts. Another advantage is that the lawyer can help the operator to go through the entire complex process of applying for a license.”
- To analyze the taxation system of the chosen country.
- To collect all the necessary papers.
- To find a reliable casino games provider.
- To consider the budget. When choosing a jurisdiction, it is necessary to consider the license cost. Such European jurisdictions as UK, Gibraltar and Malta are good for most gambling operators because they provide help during the process, however, they set the highest costs.
“Operators should also consider the tax rate set in the selected country because corporate and income taxes may differ significantly. Some countries (such as Curacao) offer special tax regimes which allow the online casino operator to pay very low income tax", says the lawyer of Slotegrator.
Each country which has a right to issue gambling licenses sets its own registration rules and has its own advantages and disadvantages. Slotegrator helps operators to make the process of getting a gaming license easier by assisting in documents preparation and dealing with the legal issues.
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