The online gaming industry is booming these days, making it the right time to get into or invest in this sector. Any company that engages in online gambling must obtain the necessary licenses or authorizations. Businesses that want to engage in gambling or online casino gaming should apply for and get an offshore gambling license.
New to online gambling and have no idea about the licensing requirements? The guide will assist you with all essential information, including the purpose of the license and how you can get the same easily. Keep scrolling to know more!!
What is the purpose of having an online gaming license?
These are the most important reasons for obtaining an online gambling license.
- Legally operate in a slew of international jurisdictions.
- Make your goods available to citizens all over the world.
- In some offshore licensing jurisdictions, you can take advantage of tax incentives such as no or reduced tax rates.
- You’ll have access to the best hardware vendors.
- Get the most up-to-date games and other applications for your platform.
- Add your gaming software to the Google Play and Apple App Stores.
At least one government requires that all online gambling platforms be registered and compliant. You, your company, your reputation, and the industry as a whole are all at risk if you don’t.
- It is also unlawful and unethical to operate without an online gambling license.
- Opening settlement accounts and onboarding payment suppliers will be complex.
- It will be considerably more difficult to negotiate or even attract advertising.
- If you operate without a license, you risk being shut down and barred from obtaining an online gambling license in the future.
- Failure to comply with a jurisdiction’s licensing requirements can have implications, including a tarnished reputation, huge penalties, and even criminal charges.
Offshore Legislations to Consider for Your Online Gaming License
In the following jurisdictions, we can assist our clients in obtaining online gaming licenses:
- Curacao Gaming Permit
Curacao’s licensing process is the world’s quickest, most cost-effective, and least bureaucratic, allowing entrepreneurs to reinvest all money back into their businesses thanks to a 0% tax rate and 0% VAT on all revenue for online gaming enterprises. That is why we frequently promote it as a great place to start a business.
- Kahnawake Gaming License
Operators licensed by the Kahnawake Gaming Commission pay a 0% gaming tax, allowing them to reinvest more of their profits. Paired with a quick and low-cost application and setup process makes it an appealing jurisdiction for many iGaming businesses.
- Malta Gaming License
A B2B license and a B2C license are both available in Malta. Gaming companies would choose the B2C license, which permits them to run an online gaming platform with skill and chance-based games.
- Gaming License from the Isle of Man
In 2001, the Isle of Man became one of the first jurisdictions in Europe to permit online gambling. The local licensing system is well-liked, stringent, and responsive, and it adheres to a high standard of professional ethics.
- Costa Rica Gaming License
The prices are reasonable, and due diligence is necessary. The process takes about five to seven days to complete, and there are no paid-up capital contributions, license fees, or any betting or gaming tax.
Consider These Factors When Selecting an Offshore Jurisdiction
Before jumping into these jurisdictions, it’s always good to understand the important factors that can make or break the situation.
One of the most important things to think about is how much it will cost you to operate in a particular jurisdiction. You’ll need to figure out how much you can spend on a license, setup, incorporation, operations, and continuing maintenance based on your budget.
Confidentiality, information exchange, and the personal information of ultimate beneficial owners are all regulated differently in different licensing jurisdictions.
You must evaluate facts such as capital needs, filing obligations, disclosure requirements, auditing, tax exemptions, incorporation times, policies, compliance, and more before making a selection.
Black Market Gambling
A few governments have outright bans on both online and physical gaming. As a general rule, your online betting license will not allow you to provide services to nations on the FATF’s, North Korea and Iran, as of August 3, 2020.
What markets are prohibited by my gambling license?
Depending on where your online gambling company is regulated, you may be unable to operate in specific markets. These get determined by the relevant jurisdiction’s licensing authorities and are subject to change. Fast Offshore reminds all clients that they must adhere to these restrictions and not sell their goods to inhabitants of such countries.
Is it possible to obtain an American gambling license?
The US online gaming sector is complicated, and each state that has legalized iGaming has its own set of rules and regulations. There isn’t a single license that covers the whole of the United States. That is only allowed if their target market is outside of the US, and they get prepared to comply to Know Your Customer duties, due diligence, and standards, and provide a clean criminal background.
A gambling license costs money.
A “cheap” gambling license does not exist. Each has an application cost that must be paid at the submission and is renewable. The administration, management, and monitoring costs get covered by the online gambling licensing fee.
The cost of obtaining a license varies significantly between jurisdictions. When compared to Malta or other EU states, Curacao and Kahnawake, for example, are on the cheaper end of the scale. Fast Offshore assists clients in determining the best solution for them based on their budget and other company needs.
Choosing a Business Service Provider
Choosing the correct corporate services provider is one of the most important decisions you’ll make when starting an online gaming company. Finding the appropriate organization to partner with is complex because there are so many different companies fighting for your business. But keep in mind that selecting the incorrect one will cost you time and money.
Top Licensing Jurisdictions
We believe Curacao, Kahnawake, and Malta are the best options based on our expertise in aiding clients with their online gambling license applications. These licenses, however, differ in terms of cost, duration, requirements, and complexity.
Online gambling is popular among all demographics since it is also a very profitable business strategy for those who choose to develop gambling platforms or apps. There has never been a better time to convert your ambition of launching online gaming firmly into a reality in an industry that is booming and shows no signs of slowing down.
For more information on online gambling, stay in touch with us!!