Online Gaming License Requirements
Obtaining an online gaming license is a complex procedure and the requirements vary depending on the jurisdiction. Generally speaking no matter which e-gaming license jurisdiction you choose the basic requirements for obtaining an online gaming license are: proof that the business owners/directors/partners have no criminal record; a valid passport; bank references; a business plan or description of your proposed online e-gaming business; description of your target market; proof that measures are in place to prevent minors accessing the online gaming website and proof that you have the financial back-up. You must show that you have done due diligence in regard to anti-money laundering regulations, social responsibility and safe custody of customer funds.
In addition, when applying for an online gaming license you will have to pay the application fee and once issued with a license you will have to pay for the license and renew it each year. The online gaming license requirements aim to set a high standard in the e-gaming industry; protect customers; guarantee that e-gaming websites are run by companies with financial stability and knowledge of the industry. The requirements have also been established to discourage applicants who may be involved in organized crime or illegal activity. In applying for an online gaming license you are required to show that you have integrity; are in good financial standing and have an ethical business record.
How can you obtain an online gaming license?
We are often asked by clients about the process of obtaining an online gambling license. While we make the process sound simple, the truth is it can be quite complex and expensive if you are not advised and guided by an online gaming regulation expert. GBO’s regulation team has vast experience in helping companies obtain gaming licenses from various jurisdictions around the world and can escort you throughout the process until your license is approved.
There are many variations in the process of obtaining a license, depending on the jurisdiction to which you decide to apply. Obtaining a sub-license from Curacao for example is much simpler than obtaining a gaming license from Gibraltar or the UK.
What is a remote gambling license and what operating licenses do I need?
A remote gambling license is a type of license issued to operators that service players via the internet, the telephone, radio, television and other communication devices. Operators involved in remote gambling must obtain both a remote gambling license and a non-remote gambling license. The remote casino operating license must indicate the type of gambling the company is to be involved in and any other relevant conditions appropriate to each operator.
Operators not complying with remote gambling guidelines are treated the same as those violating non-remote gambling ones.
Costs involved in obtaining a remote gambling license
The cost involved in obtaining a remote gambling license, also known as an internet gambling license, varies widely according to several factors involved in the process of getting a license to operate a gambling business. One factor that has a major impact on the cost of a gambling license in the jurisdiction in which you decide to become licensed, its approach to regulation, and the type of license offered by the authorities of that jurisdiction.
As an example, the cost of an offshore remote license in Curacao starts at about $22,000, whereas a remote gambling license issued by a country in the EU, like UK, Gibraltar or Malta can be a lot more expensive.
What is an offshore gaming license for online casinos?
A gaming license is an important indication of transparent business operations and that the gaming software offered to players is secure. This is why the first step followed by reliable online casino businesses when deciding to start a gaming business, is to obtain an online gambling license. An online gaming license allows your business to run a casino legally and provides the public with a feeling of trust, knowing that the operator is committed to a fair gaming policy.
Globally, there are numerous jurisdictions that will issue gambling licenses to online casinos. The most highly regarded jurisdictions are the UK and Curacao in the Caribbean. Online casino businesses must meet the requirements set forth by the jurisdiction in which they have decided to become licensed in order to be issued an online gambling license.
A crucial component to operating a successful online casino is the ability to collect funds online, for which you need a merchant account. Setting up a merchant account in a bank without a proper gambling license can prove to be an impossible task. Banks are very careful about who they conduct business with and tend to cooperate with partners who are acknowledged by a regulatory body in a certain jurisdiction.
Obtaining a remote gambling license (sub-license) in Curacao brings about many benefits, and while the cost of $20,000, is higher than that of other offshore jurisdictions, the provided benefits make this a jurisdiction of choice for many online casino companies.
Online Gaming License Background Check
One of the stages involved in applying for an e-gaming license is background checks on the applicant and in some cases also background checks of the company’s directors, shareholders and employees. This is to determine whether the applicant is a worthy candidate for an e-gaming license. The background check examines the applicant’s past financial records; net worth; business dealings; employment record; criminal history (including criminal conduct which did not result in a conviction) and general integrity.
In Malta for example applicants for an e-gaming license will need to undergo a “fit and proper exercise” in matters of finance and management. The jurisdiction where you are applying will most likely make enquiries with other national and international regulatory bodies and law enforcement agencies to check your probity. There will be an in-depth analysis of your financial history and in some cases a financial audit and even fingerprints can be required.
Applicants release all claims against the regulators for any liability resulting from their investigation. The investigation is done by either an in-house team or an outside agency that conducts the inquiry. The investigators usually include individuals trained in law enforcement. The internet gaming license background check can take several months depending on the complexity of your history, the number of company individuals investigated and the jurisdiction resources. The background check process can include personal interviews with the applicant and other relevant parties. Internet gaming license background checks vary from jurisdiction to jurisdiction.
If the background check reveals that you have submitted false information in your application then you are not likely to be issued an e-gaming license. If you are found to have been convicted of any crime your application is likely to be rejected. By applying for an internet gaming license the applicant is agreeing to full transparency and to accurate and complete disclosure of all requested information about shareholders, directors, employees and company owners. The background check is complete when the investigators have verifies that the information included in your application is accurate; detected any information you failed to submit and uncovered any illegal or unethical dealings you may have had specific financial transactions, money laundering, bribery or tax evasion. It is always best to be completely transparent with the information you provide even if it is negative as the e-gaming license background check will undoubtedly uncover all information anyway