The types of online casino licenses & iGaming regulation
Licensing of all iGaming Products — online casinos, sports betting, poker, lotteries, and bingo. iGaming license obtaining a work permit from a reputable regulatory agency is an important step for an online casino, as it demonstrates that the casino is operating legally and in accordance with industry standards.
There are several licenses that an online casino can obtain, depending on the jurisdiction in which it operates:
- Malta Gaming Authority (MGA) License: The MGA is a respected regulatory agency based in Malta that issues licenses to online casinos and other gambling companies. Malta is a popular destination for online casinos because it has a well-established and favorable regulatory environment for iGaming companies.
- UK Gambling Commission (UKGC) License: The UKGC is a regulatory agency based in the United Kingdom that issues licenses to online casinos and other gambling companies that want to operate in the UK market.
- Gibraltar Gambling Commissioner License: The Gibraltar Gambling Commissioner is a regulatory agency based in Gibraltar that issues licenses to online casinos and other gambling companies that want to operate in the Gibraltar market.
- Alderney Gambling Control Commission (AGCC) License: The AGCC is a regulatory agency based in the island of Alderney, near the UK, that issues licenses to online casinos and other gambling companies.
- Isle of Man Gambling Supervision Commission (GSC) License: The GSC is a regulatory agency based on the Isle of Man that issues licenses to online casinos and other gambling companies that want to operate in the Isle of Man market.
- The Curaçao Gaming Control Board is a regulatory agency based in the Dutch Caribbean island of Curaçao that issues licenses to online casinos and other gambling companies that want to operate in the Curaçao market. Obtaining a license from the Curaçao Gaming Control Board involves a application process that includes submitting business plans, financial statements, and other documentation, as well as paying a licensing fee.
- Spelinspektionen is the Swedish Gambling Authority, a regulatory agency responsible for issuing licenses to online casinos and other gambling companies that want to operate in Sweden. Spelinspektionen was established in 2019 as part of the Swedish government’s efforts to modernize and regulate the country’s gambling market.
Spelinspektionen is responsible for issuing and enforcing gambling licenses, ensuring that licensed operators follow Swedish gambling laws and regulations, and protecting consumers from illegal or unethical gambling activities.
Online casinos that want to operate in Sweden must apply for a license from Spelinspektionen and meet certain technical and operational requirements in order to be approved. Players can be confident that online casinos that hold a license from Spelinspektionen are operating legally and ethically in Sweden.
However, it’s important to note that a license from the Curaçao Gaming Control Board may not be as highly regarded as licenses from other regulatory agencies, such as the Malta Gaming Authority or the UK Gambling Commission. This is because the regulatory standards and oversight in Curaçao are not necessarily as strict as in other jurisdictions. Players may want to be cautious about playing at online casinos that are only licensed by the Curaçao Gaming Control Board.
What is an Offshore Casino License?
An offshore casino license is a license that is issued by a regulatory agency in a jurisdiction that is outside of the country where the casino will be operating. Offshore jurisdictions are often chosen by online casinos because they offer favorable regulatory environments and tax benefits.
There are several regulatory agencies that issue offshore casino licenses, including the Malta Gaming Authority, the Gibraltar Gambling Commissioner, and the Curaçao Gaming Control Board.
Obtaining an offshore casino license can be a complex process that involves submitting detailed business plans, financial statements, and other documentation, as well as paying a licensing fee. Online casinos must also meet certain technical and operational standards in order to be granted a license.
How Online Casinos Apply for Gaming Licenses?
The process for applying for an online casino license varies depending on the regulatory agency and the jurisdiction in which the casino will be operating. However, there are some general steps that are typically involved:
- Determine the appropriate regulatory agency: The first step in applying for an online casino license is to determine which regulatory agency is responsible for issuing licenses in the jurisdiction where the casino will be operating.
- Gather necessary documentation: The regulatory agency will require the online casino to provide a range of documentation as part of the application process, including business plans, financial statements, and other information.
- Submit the application: Once all of the necessary documentation has been gathered, the online casino will need to submit the application to the regulatory agency.
- Pay the licensing fee: Most regulatory agencies charge a licensing fee to cover the cost of processing the application and overseeing the operations of the online casino.
- Wait for approval: The regulatory agency will review the application and conduct any necessary background checks before deciding whether to approve the license. This process can take several weeks or even months.
- Meet operational requirements: If the license is granted, the online casino will need to meet any operational requirements set by the regulatory agency, such as maintaining certain financial reserves or using certified software.
Overall, the process for applying for an online casino license is typically detailed and involved, and can take several weeks or months to complete.
How much do Online Casino Licenses cost?
The cost of an online casino license can vary widely, but it is likely to be several tens of thousand dollars or more.
The cost of an online casino license varies depending on the regulatory agency and the jurisdiction in which the casino will be operating. Some regulatory agencies charge a flat fee for a license, while others charge a percentage of the casino’s revenue.
In general, obtaining an online casino license can be a costly process, as there are various fees involved, such as application fees, background check fees, and ongoing supervision fees. There may also be other costs associated with the licensing process, such as legal fees or technical compliance costs.
It’s important to keep in mind that the cost of an online casino license is just one of many expenses that a casino will incur as it begins operations. Other costs may include things like marketing expenses, employee salaries, and game development costs.
Obtaining a gaming license in Malta
As the application fee for an MGA license is €5,000 and the annual license fee is €25,000. Additionally, there are progressive tax rates that apply to online casinos with a B2C Type 1 license (which allows them to offer video slots) based on their profits. These tax rates range from 1.25% for profits up to €3 million, to 0.55% for profits up to €10 million.
Overall, Malta is an attractive location for online casinos due to its favorable regulatory environment and tax rates. However, it’s important to keep in mind that the cost of obtaining an MGA license and complying with Maltese regulations is just one of many expenses that an online casino will incur as it begins operations.
Players should be wary of playing at online casinos that do not hold a valid license.