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Having a gambling license ensures stability and increases players’ trust. Slotegrator breaks down how to get a gambling license in 2022.
Getting a gambling license is one of the first — and most important — steps for a new online casino or sportsbook. Licenses enable holders to operate without fear of being shut down, open accounts with banks and other financial institutions, cooperate with leading game and software developers, access the world’s most profitable markets, and inspire trust on the part of the players.
How to choose a jurisdiction
The first step to open a license is choosing a jurisdiction. Each has its own licensing framework and requirements.
Some licenses are internationally recognized, but your choice will depend on your target market. Authorities in many jurisdictions require operators to get a local license. For example, to enter the UK market, you need a gambling license issued by the UK Gambling Commission.
To choose a jurisdiction, operators must evaluate their professional experience and the eyps of gambling they want to offer.
Beginning operators are advised to apply to jurisdictions that offer the easiest possible license acquisition process and favorable financial conditions. Experienced operators primarily focus on the status that the license has received in the iGaming industry. For example, novice entrepreneurs, almost as a rule, opt for the jurisdiction of Curacao, while those who want to expand their established businesses often flock to Malta.
Some jurisdictions offer a single license for all types of gambling activities (for example, Curacao), while others require a separate one for each type. The main types of gambling are RNG games, sports betting, fantasy sports, and poker. At the same time, poker, depending on the jurisdiction, can be either a game of skill or a game of chance.
How much does a license cost
Cost is inevitably a factor when choosing a license. Fees and taxes, as well as additional costs associated with the process of obtaining a license, vary from jurisdiction to jurisdiction. Operators should be pragmatic and start by outlining their budgetary constraints and making an honest estimate of how much they can afford to spend.
Tax rates vary, depending on each jurisdiction’s policies and the operator’s income level, but authorities often impose low or even no taxes on gambling enterprises.
What does the licensing process include?
Each jurisdiction has an individual licensing process. As is often the case with bureaucratic procedures, applicants can expect plenty of complexity and stacks of paperwork. For example, due diligence checks are traditionally very thorough, and key business figures undergo background checks by international legal agencies.
When choosing a jurisdiction, it is important to pay attention to the time frame. While on the island of Curacao, the process takes up to 6 weeks, in Malta, it takes up to 6 months.
How can applicants speed up the licensing process?
To avoid a lengthy bureaucratic licensing process, you can turn to experts. As a rule, such support includes a range of services from business consulting to the preparation and verification of the documents required by the process.
Most popular jurisdictions:
Slotegrator’s legal specialists can help prepare the necessary documentation and perform all administrative tasks of the jurisdiction where the client receives a license to conduct gambling business. Get in touch for a consultation to find out which jurisdiction suits the goals and resources of your business.
