The use and organization of games require a general license for the type of game to be organized, commercialized, and operated, whether it be ‘Gambling’, ‘Competition’, or other games. Likewise, and in conjunction with a general license, a single license is required corresponding to the type of gambling that the gambling operator intends to organize, commercialize or use.
Game license requirements
The licensing procedure, which generally does not limit the number of licenses that can be granted, aims to verify that applicants comply with the requirements established by applicable regulations and specifications. In particular, the requirements of a legal, economic, and financial nature, software security and reliability, security of operations and transactions related to the development of gambling activities, a responsible gambling policy and protection of minors, as well as the fight against fraud and money laundering, follow the spirit of the licensing model stipulated by the law.
The online casino market today includes over 10,000 different platforms around the world. This means that players have the freedom to choose a gaming site, but that choice is critical.
What is an online casino license? What are they for?
The biggest fear of gamers is registering at a dishonest casino. A casino that is not going to pay the winnings. To avoid mistakes, there is a simple solution: the license that validates the online casino. After all, under the license, you can find out the reliability of the casino. There are several licenses in the world—some more stringent, others weaker—when it comes to casinos. A license, also called a certificate, is issued by a government agency that enforces certain rules that must be followed to avoid any disputes with players. A license can be obtained provided that the casino strictly complies with the standards set by the organization. Also, there is a licensing agreement or international licensing, hence the interest in checking what is relevant to the casino. The licenses do not coincide with one another; each has its own criteria.
Be careful with licenses! Here are the main online gambling licenses that are most commonly found in online casinos. However, a license is not always a guarantee of integrity — casino customer service is even more important because the return of your winnings and the distribution of bonuses will depend on it.
1. Antigua
This West Indian license has proven itself in the electronic gaming sector, even if it still has conflicts with, for example, the World Trade Organization. From now on, every operator citing it must subscribe to the Offshore Game Development request. If this request is approved, the conditions will be as follows: payment of $70,000 with an annual tax of 3%.
2. Curacao
This is one of the oldest licenses. It is a territory where online gambling licenses have been issued since 1996, thanks to a regulation introduced in 1993 by the government of the Netherlands. The Curacao Internet Games Licensing Authority under the Curacao Ministry of Justice is in charge of issuing licenses.
But why is it so attractive? Because in addition to keeping records of the audits and financial transactions of each player—which allows it to offer security guarantees to the user—the Internet Games Licensing Authority offers many services to operators. For example, it manages games over the Internet, offers hosting to bookmakers, and even offers IT infrastructure when needed.
They offer one of the most beneficial taxes on the market with a 2% net profit. Admission takes place in two stages: first, the operator must apply for admission to the Curacao Internet Gaming Association, followed by a thorough investigation. If accepted, the license requires each operator to contribute $35,000, followed by monthly installments of $5,500 over 2 years. Keep in mind that online gambling and betting licenses are big business for the country, and the government is responsible for facilitating bookmaker access and licensing here. After all, there is competition here too.
The major disadvantage of this license is that it does not participate in disputes between casinos and players. In other words, casinos are practically autonomous in their policies.
3. Kahnawake
An Indian game reserve located in Canada offers an online casino license. But for some time, this has been questioned. Because it can license any site, not just the best casinos. In addition, when a license is granted to an online casino, it requires a tax of $5,000, then another $15,000, and finally $10,000 for annual renewal. In addition, it manages conflicts and disputes.
There are four types of licenses in Kahnawake, although they differ from those offered on the European island.
In the case of Kahnawake, we have:
- Interactive Games License (IGL) that is granted only to the on-site host company
- Service Provider Authorization (CPA) is provided to those companies that want to obtain an online gambling and bookmaker license. They must be based on an IGL licensed hosting structure
- Secondary provider authorization for customers headquartered in another jurisdiction recognized by the Commission
- Key person license, which, as the name suggests, is only issued to persons representing companies with a CPA license.
4. Malta
This license is currently facing several challenges, particularly with players who feel it doesn’t help or protect them despite existing procedures. However, it is possibly the best jurisdiction in Europe. The hard work done by the MGA (Malta Gaming Authority) has allowed it to gain an edge over other countries also interested in becoming the headquarters for online bookmakers. There is a B2B Gaming License, which refers to the supply and management of game elements, software vendors, and the control system where the vendor is based.
On paper, this license is strong: every casino wishing to apply must provide evidence that its software has been tested for approximately one semester to confirm its quality and must sign a player safety and protection charter. Finally, if approved, the operator must pay €2,000 followed by €3,000 in monthly fees. Moreover, even though there are many complaints, the authority remains inactive and tends to avoid intervention.
5. Alderney
Usually considered a small Anglo-Norman island with tax advantages (a tax haven). To obtain this state license, online casinos must pass a series of rigorous exams. The reassuring part of this license is that companies do not need to prove through external or internal investigations that their casinos are operating honestly and that their software is trustworthy. Note: online casinos must pay $95,000 annually.
6. Gibraltar
As you may know, Gibraltar is a British overseas territory located south of the Iberian Peninsula. Although it belongs to the United Kingdom, it has an autonomous government. This autonomy has supported the rise of online gambling companies and casinos in recent years by offering both tax breaks and services.
This has led dozens of bookmakers to establish their headquarters in Gibraltar, despite it being an area of less than 7 km² with approximately 30,000 residents.
Why? Mainly because it offers services in two of the most widely used languages in online sales—Spanish and English. All residents are bilingual, so companies don’t need to double efforts to target both Hispanic and Anglo markets.
In addition, taxes are low, and Gibraltar’s regulations are well adapted to the requirements of bookmakers. However, other countries offer similar benefits.
Its main attraction is the ability to serve two major markets at a relatively low cost—ideal for those aiming to succeed in both the Spanish market (Spain and Latin America) and the English-speaking market (practically the rest of the world).
But it has one of the strictest requirements for doing business. In fact, to be eligible for this license in this overseas territory, the company must demonstrate legitimacy. Gibraltar is arguably one of the most competent and reliable jurisdictions in the industry. To qualify, a business must be both stable and well-established. In other words, a licensed casino must have a solid financial base and provide detailed profit reports. Without meeting all these criteria, there's no chance of being approved.
7. Isle of Man
Located in the Irish Sea, the Isle of Man is considered a tax haven. However, that doesn’t mean it lacks strong oversight. Every casino undergoes a detailed review with a fine-tooth comb. This license is granted through an application process: after the casino applies, a commission assesses whether the license can be issued. Owning this license costs $47,000 plus a 1.5% tax. The island is now globally recognized and is proud of its regulatory efficiency.
8. UK
This UK license is known to be one of the strictest in the industry. It is very easy to obtain an online gambling license, depending on what the business needs.
There is a license for online betting on real events—such as soccer, tennis, basketball, or horse racing tournaments—as well as a separate license for virtual events like lotteries.
Of course, there is also a special general license for sports betting and another one for foreign companies. In short, the United Kingdom offers a fairly comprehensive framework. The Gambling Commission is responsible for issuing these licenses.
The downside of this license is the tax rate, which may discourage many gaming companies. The tax stands at 15%—the highest in the industry. However, players are a top concern, and the license includes a streamlined procedure for handling disputes, all of which are taken seriously.
