Need an online gambling license?

Unlocking Success: The Essential Guide to Obtaining an Online Gambling License

Last updated Sep 04, 2023
Sep 04, 2023 gambling business

Why do you need an online gambling license

If you want to open an online gambling business, you need to follow three simple rules:

  1. You need to be able to connect all the top games, work with legal platforms and use the best payment solutions.
  2. Your business must gain the trust of the players.
  3. 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.

how to get an online gambling license

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

  • 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.

how to get an internet gambling 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%.

how to get an offshore gambling license

source: Statista

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.

guide to obtaining an online gambling license

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.

guide to obtaining an gambling license

How to get an Offshore Gambling License in Four Steps

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. At this step, you’ll really understand how to get an online gambling license and a complete game plan from us.
  • 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.

In this article you will find the advantages and disadvantages of the Anjouan license and a guide to obtaining an gambling license.

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.
how to get an online gambling license

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. 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.
how to get an offshore gambling license

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.
Author photo

Max Kerry

Maxim is the founder of LicenseGentlemen.com We help our small and large clients with online gambling licensing, platforms and payment system providers. After more than 300 successful licensing projects, we know exactly what problems every startup faces. We help our clients get the license quickly, choose the best platform and connect all payment methods so they can focus on their business. We also produce free content you can find on this blog or on YouTube.

FAQ Regarding Gaming Licenses

What are the reasons for suspension or total revocation of a gambling license?

A gambling license can be suspended or completely revoked due to violations of the conditions and requirements set by the regulatory authority.

  • Failure to pay your customers. Failure to pay your customers can result in your license being suspended for a thorough investigation. If you’re unable to provide substantial evidence to justify your actions, your license may ultimately be revoked.
  • Failure to pay annual fees or gaming tax. If you fail to properly pay your license fees or game tax, it may result in the suspension or revocation of your license. It’s important that you meet all of your financial obligations on time.
  • Failure to comply with license conditions. If a business violates the terms of its license or relevant laws and regulations – for example, if it accepts bets from minors or players in restricted areas – this may result in disciplinary action, up to and including revocation of your license.
  • Inadequate recordkeeping. Accurate recordkeeping and effective audit controls are critical to the management of a gaming enterprise. Most regulators take this seriously. Failure to maintain proper records can raise suspicions of fraud and lead regulators to intervene.
  • Failure to comply with anti-money laundering obligations. Failure to provide sufficient evidence of anti-money laundering and counter-terrorist financing measures can have serious consequences.
  • Failure to treat players fairly. When games aren’t safe and fair, bad things can happen. These include cheating, unclear rules, lack of help for players, and lack of protection for their private data.
Do we need a license if we're a software development company and develop games for other companies?

The answer is yes. You need a license for B2B gaming license. Each license is different and some regulators don’t distinguish between B2C and B2B licenses. This means that one license can be used for your B2C online casino and your B2B software development business at the same time.

However, most regulators make a clear distinction between B2C and B2B licenses.

Before you can apply for a B2B license, you may also need to obtain gaming industry certifications.

The most popular is the RNG certification (which stands for Random Number Generator). This certification proves that all your games are fair, offer all players equal chances to win, and cannot be manipulated by third parties. Regulator will require an RNG certificate before granting gambling software licence.

What are the initial steps to obtaining an online gambling license?

The initial steps involve conducting thorough research on the regulatory environment of the jurisdiction where you plan to operate. This includes understanding the legal requirements, tax implications, and any specific documentation needed. Subsequently, prepare all documents including a business plan that outlines your operations and financial projections. Here at LicenseGentlemen, we help entrepreneurs navigate the licensing process from inception to successful license acquisition.

How long does it typically take to secure an online gambling license?

The timeframe to secure an online gambling license can vary significantly depending on the jurisdiction. Generally, it can take anywhere from several weeks to over a year. This duration is influenced by factors such as the completeness and accuracy of your application, the specific requirements of the regulatory body, and the complexity of your business model.

What are the most challenging aspects of obtaining an online gambling license?

One of the most challenging aspects is complying with the stringent regulatory and compliance requirements set by licensing authorities. This includes proving financial stability, integrity, and a commitment to responsible gambling practices. Additionally, navigating the legal intricacies and maintaining up-to-date with regulatory changes in various jurisdictions can be complex and time-consuming. A robust legal and compliance team is crucial for addressing these challenges.

Can I operate in multiple countries with one online gambling license?

Yes, you can. The list of allowed countries depends on the license. Contact us to find out which countries are allowed with the different licenses.

What are the ongoing requirements after obtaining an online gambling license?

After obtaining a license, operators must adhere to ongoing regulatory and compliance obligations. This includes regular audits, financial reporting, and implementing anti-money laundering (AML) and responsible gambling measures. Operators must also ensure that their gaming software and operations remain fair and transparent. Failing to comply with these ongoing requirements can result in fines, license suspension, or revocation.

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Comments(2)

Max K
very interesting information :)
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Maxim
great comment
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