How do I quickly start an online gambling business? Q&A
“How do I quickly start an online gambling business?”
To quickly start an online gambling business, there’s only one way. You’ve to resort to solutions that already exist on the market.
So if you’re planning to develop a game or a platform, you’ve to realize that this isn’t a quick entry into the market, because it’ll take you a couple of years to develop something, and then you need time to get the certification and the license and everything you need to actually get into the market and make money.
How to start a gambling website? The only way is to use something that already exists in the market. And that’s fine. That’s just how business works. To do that, you first need to understand that there are certain things you can’t avoid. There are processes you’ve to work on to get to market.
First, you’ve to get the license. You can compare Top-4 most popular licenses in this post.
Then you’ve to structure your business so that you can connect payment system providers, optimize taxes, and compete with other companies that are in the same markets.
Third, you need to open a bank account where you can accept cash. And that’s a high-risk business that not everyone wants to work with. You can’t go to Bank of America or Lloyds or Barclays or whatever and open a bank account there.
Then you’ve to tie in the payment system providers because you want to accept cash. All of that takes time and you can’t avoid those steps. You’ve to do that.
The license will take two months. You can set up a Cyprus company at the same time. After that you can open a bank account and connect payment system providers.
While you’re doing all these things I described, you need to choose the platform you want to use.
Whether you’re launching a sportsbook, a casino, or anything else, you need a platform. The platform provides you with the back office. It provides you with the KYC bonus system and everything else. You can do it all at the same time and you don’t have to wait three, four months to get the license and the bank.
Now you’ve to decide on a software provider. For example, if you offer games, it’s best to choose an aggregator.
An aggregator allows you to connect several games at once – you can connect 100, 200 games.
You don’t have to sign all the contracts with every single provider.
So you can do that in one place and connect them. Then you can call your agent and say: Listen, I want games from Evolution.
And “bang,” you’ve got your Evolution games, or live studios, whatever.
That’s the fastest way how to start a legal gambling business because you’re using everything that’s on the market.
And now you’ll be investing in marketing and design. Now you’ll have to think about what you want your casino to look like, what you want the branding to look like.
Do all that at the same time, before you’ve the PSPs connected. It’s probably quickest in three or four months and then you can start making money.
“Are online gambling businesses required to restrict users from countries that prohibit online gambling?”
That’s a really interesting question, because in the world of licensing, it’s not that simple.
There are a number of countries where online gambling is well regulated. Those are usually the European Union countries or the United States, which have their own local license. The local license – the one that you can buy, that you can afford, that’s really important.
They have also enacted regulations that monitor the market and put out of business any company that does not have a license. Or they make the life of these companies miserable and very complicated.
The second type of countries is where online gambling business is not allowed. You can not do business in certain Muslim countries, it’s against the law. At the same time, there are certain licenses that do not allow or restrict you to do business in these countries.
The third type of countries is where gambling is neither allowed nor restricted by law. Here, there are no regulations. It is an unregulated market. They probably have some laws for land-based casinos, but they have no laws for online gambling casinos.
So the licensing world is really different and it’s constantly and continuously changing.
That’s why we have created a file for you, where you can see all the countries you should avoid if you do not want to get into trouble.
We have divided all these countries into three different groups so that you can check which one is right for you, and so that you can understand very quickly which countries you should stay away from if you have one of these licenses.
“Which is the best country to open an online gambling company, regarding regulation, taxes and bureaucracy?”
To open an online gambling business, you first need a license. Three of them require a local presence. The Maltese license and the Isle of Man license require local substance. So you need to have someone and an office on site. In some cases.
With the Curacao license, you have to have a business in Curacao.
So you can not pick your jurisdiction.
With the Isle of Men and Malta, it’s the same thing.
The only license that does not offer its own business services is the Kahnawaki.
So you can choose which country is best for you. Consult with your accountant and ask this question. Where can you open a business, because it depends on where you live. If you live in the European Union or in the USA, you will face some consequences.
You will find that certain offshore countries are not welcome there. You will have problems getting money from these countries.
No bank wants to work with these countries or they will be penalized. These jurisdictions have been used by drug traffickers and warlords and who knows who else.
This whole financial structure does not treat them well. So ask your accountant, and I hope you find an answer that satisfies you.
But as I said, the Isle of Man, Malta, Curacao, they all require local incorporation in their respective countries.
“I was wondering if Curacao’s gaming license requires KYC?”
Yes, it does. So all the normal, decent licenses require KYC. It’s just a matter of how far they’ll go to check your guts and parents and probably your family members.
It’s different for every license, of course.
The Maltese license goes really hard because they want to make sure that you are okay, and that you do not have any bad blood around you. You have a team of professionals.
They will do KYC, and not just on you, but on every key member that you have.
If you want to learn more about Maltese licensing, I wrote a post. Check out this post and the video and you will learn more, much more.
With Curacao you have to go through the KYC process as well. You have to prove your identity, you have to prove that you have no criminal record, that you are fine. You have to provide proof of your funds. You have to provide proof of address. So all of these things are required.
But why are you asking this question?
When you open a bank account these days, KYC is required, so it’s just a normal process that everybody requires these days, especially when you are taking money from other people.
Especially if you are running a high risk business, especially if it is a casino or gambling.
I mean, they need to know who to trust with their money so that you can make money.
Otherwise, all the gambling commissions and all the main operators will be in trouble if they do not do that.
Thank you for your questions. Send me a message if you have any other questions. If you are. If you think you are ready for the license, then let us talk.