Unlocking Success: The Essential Guide to Obtaining an Online Gambling License
Why do you need an online gambling license
If you want to open an online gambling business, you need to follow three simple rules:
- You need to be able to connect all the top games, work with legal platforms and use the best payment solutions.
- Your business must gain the trust of the players.
- You need to ensure the legality of your business activities.
Without the license, you cannot compete with online casinos that have the best software from top software providers like Evolution Gaming, PragmaticPlay, NetEnt, Hacksaw Gaming and others.
With the best payment solutions, you can make sure that your players can deposit and withdraw money quickly. This guarantees that they will come back to play more and generate more revenue for your online gambling business.
Most players check if the casino is licensed before they wager their hard-earned money. This is the only way you can increase conversion rates and attract high-rollers who wager massive amounts of money.
Individuals and Entities Requiring a Gambling License
- Individuals and Entities Requiring a gambling license
- Operators of online casinos, lotto, bingo and poker need an igaming license.
- Online bookmakers: websites where you can bet on sports events and other activities.
- Online casino platforms that offer technology for creating and operating online gambling websites. They need an online gambling license to offer their product to operators in different markets. For example, if the platform wants to attract new operators from the UK, it needs a UKGC license.
- Software developers who develop games for online casinos also need a B2B license.
- Affiliates that buy traffic from Google, Facebook and other social media platforms may require the license as well.
Even more than that!
If you are a software developer and you develop games for online casinos, you need a B2B license. In this case, you also need a gaming certification that proves the fairness of all the games you develop.
All online games that use random number generators (RNG) must be certified before you apply for the license.
It is possible to get a gaming certificate online, and usually it doesn’t take long. iTech Labs, GLI, BMM, Quinel Testlabs are the most well-known companies used by both industry leaders and startups, which is an important first step on the way to getting a gambling software license.
Benefits of Obtaining a Gaming License
According to Statista.com, the online gambling market revenue is currently ninety-five billion dollars. It is expected to reach $132 billion by 2027.
A lot of money is made in the industry and the growth rate (CAGR 2023-2027) is 8.54%.
Connect the best software providers that will give you the leverage
Successful online casinos like Stake or Betfury offer the best products and experiences. People expect the best games, bonuses and promotions that excite them. They also want to be able to fund their account the way they want and withdraw their winnings quickly and without delays.
To succeed in this market, it’s not enough to offer low-quality games that nobody wants to play. Your acquisition costs will be high, customer lifetime value will be low, and the churn rate will hit the roof because everyone will leave.
It’s by obtaining a gambling license, you have the ability to connect the best software providers that your players want to play. You can get several hundred different games from the best brands in the world and compete with the market leaders. Instead of grappling with mediocrity and barely scraping through.
Connect the best payment solutions
If you want to have a steady stream of customers who actually like to bet, you need to offer them convenient payment options.
Customers pay with the methods they want, not the way you want them to.
Different markets bring different challenges, but to succeed in the online gambling business, you need payment system providers that allow your customers to easily top up their balances. That’s how you win them over.
Also, you need to make it easy for them to withdraw the money when they win, because that’s the only way to keep them. The most important rule for all casinos is “keep them play and keep coming back. The longer they play, the more they lose, and in the end you get it all”.
Online gambling companies that do not provide an easy way to withdraw money end up losing a customer and the money. Companies that have an online gambling license can offer the best payment solutions and guarantee a smooth experience for their customers. This way, they will be happy to come back and keep playing.
Prerequisites for Obtaining a Gaming License
As a business owner, you need to take care of some really important things before you can enter the market:
- Your online gaming platform must be operational.
- You must have the best games that are suitable for the market.
- Connect payment system providers.
- Take care of the marketing.
In order to do all this in time, you need to get a gambling license first. In most cases, you do not have to wait for your license to be issued, but you can start working your business right away.
This way you can go to the market in three months instead of waiting for one year.
Steps to Acquiring a Gaming License
The process of obtaining a license involves a number of different stages. The complexity varies for different licenses. However, the general process includes the following key phases:
- First look: Finding out if you can get the license At the beginning, we try to find out if it’s possible to get the license. Sometimes we can even guess if we’ll get the permission for online gambling license. It’s like predicting whether you’ll get a thumbs up before you ask for something.
- Put together important paperwork: Putting Together Important Papers Depending on the type of license you want, we carefully gather all the important papers you need. We arrange these papers neatly and clearly, like putting puzzle pieces in a box. This way, we can put together a big bundle of papers that show we meet all the regulations and are eligible to apply for the license.
- Get the right requirements in place: Before we apply for the license, we need to set up our business in the right place. If we do that right, it’ll also help us optimize taxes.
- Send the license application: After we get everything done, it’s time to officially apply for the license. We work closely with the people who make the rules to make sure everything goes smoothly. This teamwork helps us move quickly and get the license approved in a good way.
Varieties of Online Gaming Licenses
Different types of licenses help gambling operators do different things, from offering games to people around the world to helping other businesses run their gambling services.
- International gambling licenses: These licenses allow gambling companies to offer their services in different countries.
- Local gambling licenses: These licenses are more specific and limited to a particular region or country. Companies with local licenses focus on providing fun and entertainment to people in a specific location.
- B2B licenses: These licenses allow companies to offer gaming services or technologies to other businesses. It’s like if you make cool games and sell them to online casinos. With these licenses, gambling companies can support and provide tools to other companies in the gaming world.
- B2C licenses: These licenses are for businesses that offer their gaming services directly to individual players or customers.
Well-Known Regions for Gaming Regulation
The most popular gambling licenses on the planet Earth are:
- Curacao gambling license. (The Ministry of Finance of Curacao has decided to change the regulation and introduce the new license in January 2024. Due to this decision, Curacao’s gambling license is no longer as friendly as it used to be to startups.
- The Anjouan License.
- Tobique’s gambling license. This license is the direct replacement for the gambling license of Curacao.
- The Maltese MGA license. It’s usually referred to as the “Bentley” of all licenses focused on Europe.
- The Isle of Man license. Ideal if your focus is outside Europe and in unregulated markets.
- The Kahnawake license. Partially allows you to get benefits of the Anjouan or Tobique licenses, as well as some other jurisdictional benefits.
Consequences of Gaming License Suspension or Revocation
The revocation of your license means that you’re out of business. Everything you have built up to this point, the technology and operations, can no longer function.
- Software providers and payment service providers will be forced to stop all business activities with you.
- After you take the first hit, your customers will notice immediately. You’ll have an operational hell trying to manage everyone who wants to withdraw money and face an immediate drop in sales.
- Moreover, operators who aren’t regulated can expect to be banned from the platforms and face legal problems that can even lead to the closure of their business and jail sentences.