The online sports betting industry has been booming dramatically for several years, and the trend will likely continue well into the next decade. The demand for online gambling boosted the number of virtual casinos globally, and the numbers keep rising. There has been a significant increase in individual requests for information about gambling licenses.
Not only online gambling is popular among punters, but it also presents a powerful business opportunity. Several new online casinos have set up shop in the past few years, and the trend is slowly catching up globally. Let’s walk you through the different factors associated with a gaming license.
The Rules of Getting a Gambling License
If you want to start an online gambling business, getting a betting license is the first step. You cannot run a successful betting business without a valid license. Next, you must open a bank account, partner with electronic payment providers, and procure gaming content. A valid gambling license helps promote your business and boost brand loyalty.
It’s surprisingly easy to earn a gambling license if you follow certain rules. And a quick Google search reveals a wide list of brand-new bookmakers working by the book. Here are some basic things to know before applying for a betting license.
- Pick a country that meets your expectations. You must research gambling jurisdictions, costs, requirements, taxes, and processing periods before applying for a gambling license. Consult a lawyer for better results.
- Prepare all legal documents in advance. You will need a passport, address proof, bank reference, and a criminal background check.
- Ensure your casino software meets industry standards and judicial requirements. Create a list including software functionalities, games, partnership agreements, and RNG certification.
The Most Popular Betting Licenses and How to Get Them
Each jurisdiction has individual requirements for the applicants. Here is a list of the top betting licenses and how to get them.
The Curacao Gaming Control Board
Curacao is one of the most common betting licenses globally, with 70% of all online casinos operating under a Curacao license. Issuing betting licenses is a crucial earning strategy for the island country. And a Curacao betting license is trusted in most parts of the world. These are the benefits of operating with a Curacao betting license.
- Opening a merchant account is straightforward with a Curacao gaming license.
- You only need to submit essential documents like the details of your company’s founders, financial statements, and revenue.
- Most software providers will happily work with Curacao license holders.
- The license comes with a 2% service charge, which is far less than most other jurisdictions.
- Only Curacao offers a single license for all gambling activities, including sports betting, poker rooms, casino games, lotteries, etc.
Malta Gaming Authority
Malta is one of the most respected jurisdictions for gaming licenses globally. Earning an MGA license can significantly boost your casino’s reputation. You need a Class 2 license to operate as a bookie, and the process can take between four and six months. While the requirements for a Maltese license are stricter than Curacao, it carries more weight in the industry.
You don’t need to fly to Malta to apply for a license, as the documents can be submitted online. You need the following documents to apply for a Maltese license.
- An application in English
- A certificate of no criminal background
- A detailed business plan
- A copy of the owners’ documents
- A corporate charter
- A description of the company’s activities
Licenses issued by the MGA are valid for five years, and the government charges a 5% tax. You can find new sportsbooks with a Maltese license quite easily.
Gambling Supervision Commission (Isle of Man)
The Isle of Man is an independent island with a stable government offering gambling licenses. The Gambling Supervision Commission (GSC) offers three levels of betting licenses depending on your requirements. These include:
- Network Service License
- Full License
- Sub License
The full gaming license is the most preferred since it covers all types of casino gaming and sports betting activities. The process takes about 10 to 12 weeks, and the application fees are £5,000, with an annual renewal charge of £35,000.
Online casinos holding an Isle of Man license must be hosted in the country. And since the government does not levy taxes on gambling revenue, it’s a lucrative proposition for business owners. However, companies must pay 0.1-1.5% gambling duty based on gross profit.
Getting an online casino license is seamless if you know the right channels and how to approach the authorities. While it is a bit complicated in some jurisdictions, most governments appreciate the business. Before applying for a gambling license, ensure all documents are in order, along with the necessary certificates. Since gambling laws vary globally, make sure your business complies with local regulations. You will save time and money by researching the dos and don’ts in advance.