Gambling license cost. Comparing Top-4 most popular gaming licenses.
Top four most popular international gambling licenses in 2022 – 2023:
- Curacao gambling license. Read more about how to get this license in this post.
- Isle of Man Gambling License. Read more about how to get this license in this post.
- Online gambling licenses from the Malta Gaming Authority. Read more about how to get this license in this post.
- Kahnawake license. Read more about how to get this license in this post.
Curacao gambling license. A perfect choice for any startup
Comparing online gambling licenses isn’t just about the price. It’s also about which license you start with, because you may need a couple of different ones.
For example, many popular online casinos start with a Curacao gaming license. This is a great choice if you want to start with markets in Latin America, Canada, Asia, Africa, and partially Europe.
If you run a startup then four things that will give you a competitive edge are:
- The speed of a licensing process. This online gambling license can be issued within a very short time. In most cases, it takes six to eight weeks, but there are exceptions we talk about in this post.
- Gambling license cost is another reason why the Curacao gambling license is highly popular. Depending on many factors you can get it for EUR 20,000 – EUR 32,000 flat fee. It means there are no gaming fees or any other fees involved. Just pay the annual fee and focus on your business.
- The compliance level is friendly to startups. It is the friendliest license because compared to other licenses it doesn’t need a bulk of paperwork. You have an opportunity to get into the game without a prior experience in the online gambling business.
- Taxes. For companies working on the internet, the income tax is 2%. So you will pay just twenty thousand dollars for every million dollars your online casino or sports betting business is making.
As soon as your license is ready you can start working with most platform providers and software providers in the gambling industry. 98% of companies recognize Curacao’s license which gives you plenty of room to build your business.
You can learn more about top iGaming software brands in this post.
You’ll be able to open bank accounts and successfully integrate payment system providers to accept transactions from your clients.
The only true disadvantage of this license is that its reputation is not as high as the reputation of the license of Isle of Man or a license from the MGA. This is the flip side of its popularity and low entrance barriers.
The Isle of Man gaming license
Why invest in this license?
- The Isle of man gaming license is a Tier-1 license. It is highly regulated and the compliance process is the highest in the industry.
- If you want to go public in the stock market then you’ll have to invest in this license.
The Gambling Supervision Commission (the “GSC”) is responsible for licensing and regulation of the online gambling sector in this Jurisdiction.
The license is great for unregulated markets outside of European Union.
A list of all license holders is available online via this link.
Disadvantages of the license
- They have much higher requirements for businesses and it’s almost impossible for someone without experience in the industry to get a license.
- Most entrepreneurs start with the Curacao gambling license to enter the market and then look for ways to grow. This is the moment when they consider choosing a Tier-1 option like the license of Isle of Man.
- Compared to the Curacao gaming license it’s five to eight times more expensive.
- You need to have a solid budget, a good and experienced team and you have to be determined to wait between six and twelve months.
- They have much higher requirements for businesses and it’s almost impossible for someone without experience in the industry to get a license.
- Most entrepreneurs start with the Curacao gambling license to enter the market and then look for ways to grow. This is the moment when they consider choosing a Tier-1 option like the license of Isle of Man.
- Compared to the Curacao gaming license it’s five to eight times more expensive.
- You need to have a solid budget, a good and experienced team and you have to be determined to wait between six and twelve months.
All companies licensed by the “GSC” get the highest reputation in the industry. It also allows you to:
- Open a bank account in one of the banks on the island. Capital International Bank and Cayman National will gladly work with you.
- In many cases, you will have better opportunities to work with payment processing companies. The biggest brands in the payment industry have the highest standards when it comes to processing money for their clients.
- Some industry-leading brands prefer to work with partners operating under Tier-1 licenses only.
- Tax rates. The corporate income tax rate is 0% but there is a game tax (a contribution fee) that is charged on top of your Gross Gaming Revenue (GGR). You will pay 1.5% for gross gaming revenue up to £20 million per year.
Malta online gaming license from the Malta Gaming Authority (MGA)
This online gambling license is considered to be a “Bentley of iGaming licenses”. You’ll deal yourself a fullhouse if you know how to use it right.
Malta is a member of the European Union with the lowest corporate tax across all EU states.
If you want to establish yourself in Europe as an honest online casino or sports betting operator then you have to understand that the European Union market is 100% regulated.
It means you will have to get yourself one license per market you want to work in.
Having the MGA license will allow you to optimize taxes in other Jurisdictions in European Union.
Like with the Isle of Man you can pull information about any license approved by the MGA online. You can do this by visiting this link.
This is a Tier-1 license which means it’s almost impossible to obtain it if you are an entrepreneur just starting in the industry.
You also need a team with experience. Eight “key people” have at least three years in the industry. You can find more information about How to get a Malta gambling license in our post here.
Benefits of having an MGA license.
- You can have a bank account in a Maltese bank.
- If your business is growing and you want to take it public to the stock exchange then the MGA license is a logical step on your way to going liquid. Many companies including Playtech and William Hill have this online gambling license.
- Many payment system providers in different countries will give you a better deal if you compare them to any other Tier-2 license.
- The effective corporate tax rate in Malta is just 5% which is the lowest in the European Union.
Disadvantages of the MGA license
- There are four types of licenses. Depending on the products you provide on your website you may have to apply for all four. License fees are paid separately and the final cost can be pretty high.
- The application process can last between six and twelve months.
- It’s almost impossible to get a license for entrepreneurs without experience in the industry.
Kahnawake license
Kahnawake gaming commission is responsible for licensing and regulation of online casinos. Most likely you will need a CSPA license for your online casino or sports betting. They also issue several different types for different business models (including land-based).
Benefits of the Kahnawake license
- Perfect for any startup that needs an online gambling license. The license still can be acquired by business people without any prior experience in the industry.
- Even though it is considerably more expensive than the Curacao license, this is the only license that can be obtained for a business registered in any Jurisdiction. For example, you can have a company in Gibraltar licensed by the Kahnawake gaming commission.
- The application process is straightforward. You can learn more about how to get the Kahnawake gaming license in this post here.
- Kahnawake has a 0% gaming tax.
Disadvantages of the Kahnawake license
- Even though it’s more expensive than the Curacao license, you’ll have fewer software providers ready to work with the license. In our opinion, it is the biggest disadvantage so consider all software providers before choosing this license.
- The reputation of the license is not as high as with Tier-1 licenses.
- The application process takes more time and requires more paperwork than the Curacao license. Not critical, but it can feel a little overwhelming for early-stage startups.
Comparison table for Top-4 most popular gaming licenses
| Curacao | Malta | Isle of Man | Kahnawake | |
|---|---|---|---|---|
| Opportunities | **** | ***** | ***** | *** |
| Cost | ** | **** | ***** | *** |
| Reach | no US, NL, FR, Caribean | countries w/o legal ban on gaming |
countries w/o legal ban on gaming |
no US |
| Corporate | Curacao N.V | Maltse LLC, the local substance is required | Isle of Man LLC, the local substance is required | Country of your choice |
| Time to get | Six Weeks to twelve months (reach out for more info) |
Six to twelve months (reach out for more info) |
Six to twelve months (reach out for more info) |
Three to five months (reach out for more info) |
| Effort required from your team |
** | ***** | **** | *** |
| Contribution fees |
0% Gaming Fee | Between 1.25% and 4% for the first 3 million euros (more info here) |
1.5% for GGR up to £20 million (more info here) |
0% Gaming Fee |
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