It is important for online betting platforms to get an official license. It legitimizes the sportsbook, makes it trustworthy, and attracts more punters. Licenses for online betting platforms are issued by the same bodies that license online casinos. However, in some cases, the requirements can differ. Here are the top 5 jurisdictions to get a license for an online sportsbook.
Curacao is a popular jurisdiction for getting gaming licenses because there are many advantages to getting legal permission for betting platforms there, and the process is relatively simple.
Licenses are issued by the Curacao Internet Gaming Association (CIGA), both a regulator and a licensor. The main benefit of the Curacao jurisdiction is that its license covers all kinds of gambling activities, including sports betting platforms, poker rooms, online casinos, etc.
While applying for a betting license in Curacao, operators should take into account its price. In general, they have to pay $1000 to open a bank account, $3600 for company registration, $3600 per year for company management, and $6000 per year for server maintenance. The application processing fee is $1000, and a license costs $4800 per year.
Operators with Curacao gaming licenses only pay a corporate income tax of 2%.
Do not miss: Introduction to Sports Betting
The Malta Gaming Authority offers several classes of licenses for the gaming business. Operators interested in launching an online betting platform should apply for the class 2 license, which covers games of chance where the result is determined by the outcome of an event.
The application fee is €5,000, and the application fee for license renewal is also €5,000. Operators must also pay €2,500 for a systems audit, €3,500 for a compliance audit, and an annual fee of €25,000.
As for taxation, operators pay 0.5% on the gross amount of all bets accepted.
Another popular jurisdiction for getting a license is Gibraltar. It offers several types of licenses as well, and those interested in startingan online sportsbook should obtain the B2C operator's license for online betting.
There is no application fee, but the annual license feeis £100,000. The license is issued for 5 years, and the gambling business tax is 1% of revenues.
4. Costa Rica
Costa Rica doesn’t offer an official online gambling license. When it comes to the legal gaming business, operators must get a different license, called a "data processing license." This license covers all types of gaming activities, including sports betting, slot machines, card games, etc.
The requirements to obtain a license in Costa Rica are not very strict compared to other jurisdictions. The acquisition process lasts just 3 months, and there are many advantages that attract operators. The cost of the license is $15,000, and the license renewal fee is $1,500.
Kahnawake is a widely trusted jurisdiction for obtaining a license for a gaming business. This jurisdiction offers various types of licenses - online casinos and sports betting platforms fall under the same license category, called Client Provider Authorization (CPA).
The application fee is $25,000 and the license renewal costs $10,000. Operators should also take into account that they must pay $15,000 for the required system testing, $1,900 to open a bank account, and $1,500 to open a merchant account.
Sportsbook operators should remember that the official license is an important element of the success of any sports betting platform, as it attracts more users and makes the website more reliable.