Gaming License: Main Types and How to Get It
Reputable iGaming brands choose to get a gaming license and operate legally on the market. In the long run, it enables to increase customers’ loyalty and the opportunity to leverage their businesses, becoming more open to partnerships.
Choosing and applying for an online gambling license is easier said than done. If you try to do research, you will probably become overloaded with at least five possible jurisdictions. That’s why we created this article to guide you through the challenging process of choosing and applying for a license.
In today’s blog post, you will learn how to get a gambling license, its main types, prices, and timeframes. We will also consider the main rules for you to prepare for the application process, so let’s dive into the details.
What is a gaming license?
Let’s define the core definition before moving to the rules, types, and more precise information. To quote the Collins Dictionary, a gaming license “…allows an establishment, business, club, etc., to offer games that can be played for money.” Basically, it’s permission for companies to run iGaming solutions in defined regions and on legal grounds.
This document will further work for your brand awareness and reputation, presenting you as a company that supports laws and regulations. An igaming license gives you the freedom to access various benefits, like gaining the trust of players, building solid relationships with financial institutions, reaching out to trusted software providers, etc.
Such permission is required for any type of gambling business, whether you are a games provider, a software developer, or you are related to iGaming. Running a platform without a license definitely causes trust issues from players, penalties, reputation loss, and more consequences.
Applying for a permit is a daunting task that requires money and time, but note that it allows you to provide all possible games, from online casinos to live betting. According to the latest Statista data, the number of players in online gambling will reach 233.7m by 2027, so take your chance to establish a profitable business.
5 rules on how to get a gambling license
Obtaining a license in the iGaming industry is complex and costly, mainly depending on the jurisdiction you choose. Let’s define general gambling license requirements so you will know what to start with.
Rule 1: Choose the proper jurisdiction
Essential data you should concentrate on while choosing the proper jurisdiction.
You will learn about five leading options further in this blog post. For now, let’s concentrate on their necessity. It’s better to collect data about the license provider’s requirements, cost, additional fees, how long the process will take, what documents you need, etc. Also, ensure you will be provided with robust privacy since there are more and more possibilities of cyber attacks.
Note, this step has to be well-informed, so decide in what countries you would like to operate, what is your max budget, and other crucial questions for your business.
Rule 2: Organize documentation
Example of documents required to get a gaming license.
You will definitely need to collect a large amount of documents and do your paperwork before filling out the form to apply for any gaming licenses. A complete set of docs is defined according to the specific request. However, there’s a standard you can start preparing.
For example, you have to provide the company’s terms and conditions and confirmation from your bank, like proof of funding and statements for the last six months. When it comes to other documents, be ready to demonstrate your business plan, passport copies, etc.
Rule 3: Provide robust software
Limeup we know how to launch a gaming software with a range of features that meets market needs.
Ensuring your platform is performing well is essential in what is a gaming license question. You have published the terms and conditions we have considered previously, your policy, and other required documents. You have to present feature-rich software that meets market and jurisdiction country requirements. Simply put, your gaming solution has to be robust and user-friendly.
If you are only thinking about running an online gaming business, check out our article on how to make a gambling website.
Rule 4: Consider security
How KYC helps the online gaming industry.
In iGaming worlds, data protection is a must. Moreover, you have to take into account robust systems like KYC (Know Your Client) for player authentication within AML. This software is required as a part of anti-money laundering and allows businesses to verify their customers with IDs, biometric verification, etc.
Additionally, ensure your software has the latest updates since outdated systems are more likely to be attacked and can cause data leaks. You can also conduct various secure tests to stay safe. The main goal is to pass jurisdictions’ requirements, so learn more about the systems you have to apply for choosing a permit.
Rule 5: Fill out the form
Filling out the form is not the last one, but almost the key step in applying for online gaming.
The process of application filling and approvals takes time, depending on the type of authorization and country where you want to register. It’s not the last step in how to get a casino license process; you may have to receive clarifications and need to find more documents. The timeline for approval depends on the type of license you choose and jurisdiction.
Summing up, it’s essential to note that the process of getting a permit requires a solid amount of time and money. Be aware that different countries have their policies regarding the gaming industry, and you have to consider them.
Check our blog post to learn how to start an online gambling business for complete guidelines.
What are online gambling license types?
Most popular gaming licenses.
Now, let’s consider the leading jurisdictions and what licenses they provide for online gaming companies. For instance, there are international and local permissions, and today, we will consider the first type in more detail. They are also known as offshore, which allows you to operate on the market within numerous countries legally.
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Malta is a well-known island among companies that want to open up their gambling businesses since it’s a highly reputable leader with proven registrations and robust offers. The Malta Gaming Authority has run all the licenses since 2000, and they offer two types of permissions: B2C for online gaming and B2B.
Among the main pros of this authority are stability, prestige, and a vast number of countries that Malta covers as a gaming license provider. Along with benefits, there are challenging moments like multiplex approval processes and costly fees.
Malta is perfect for established companies that want to carry out large-scale businesses. With a Malta permit, providers can offer various online gaming solutions, such as casinos, lotteries, and poker, and the list is incomplete. Obtaining this authorization opens possibilities for legal operation within EU members and many others, like Peru and Japan.
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The UK is another popular jurisdiction the Gambling Commission runs and which is required for every online gambling business that wants to operate in England, Wales, and Scotland. This online casino license allows companies to provide casinos, lottery, remote gambling, and bingo, to name a few.
There are three types of licenses: non-remote, remote, and ancillary. To receive any of these, you have to provide documents that confirm your and the involved people’s identity, financial statements, proof of competence and trustworthiness, and criminal record. You will also have to provide KYC (Know Your Customer) and AML (Anti-money laundering) solutions.
Among its key pros are prestige and the possibility of receiving permission even if you are not a UK resident (but you need a local address to receive documents). Thereby, you can register your company in another country and obtain authorization in the UK to provide gambling solutions.
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The Isle of Man is also a leading authority for online gambling businesses, which was established in 200. All permissions are provided for 5 years by The Gambling Supervision Commission. They include 4 types: full, sub, and network services and B2B software supplier licenses. Thereby, you can implement any game and offer clients cryptocurrency payments within your solution.
The application process is quite challenging, and according to the statements, you have to register your company on the Isle of Man and have two resident directors. Within the form, you have to provide your business plan, a list of provided games with descriptions, the approved company’s registration, and more, according to the type of permission.
To name a few benefits, the Isle of Man is tax-efficient, and it provides a supportive environment for all gaming businesses. When it comes to application, you have to offer a strong business plan, a KYC system, register your company on the island, and other essential information that varies from permits.
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Antigua and Barbuda offers two types of permissions: Interactive Gaming, which covers online games, and Interactive Wagering for betting. The application systems require local company registration, robust KYC solution, UBO identification, and more steps for the country to ensure you will provide a safe gaming experience.
The licenses cover various game types, from slot machines to lotteries and video poker. Companies that want to apply for permission can benefit from the tax system and the reliability of a strong and popular industry. It’s essential to notice that providers from the “white list” are allowed to promote themselves and attract players from the UK.
To apply for the authority, you have to provide information about your company and personal data as it’s required in the form. One of the requirements stands for setting up the server on the islands.
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Curacao is also a leading country when it comes to the gambling industry and offers. It has one of the most accessible applications and a comprehensive license that covers all types of games, which makes it so popular among startups and established companies.
When applying for permission, you have to provide defined documents for every person who is involved in the ownership of the company.
As we have mentioned, Curacao is a perfect residence for startups or companies looking for possibilities to reduce costs. Moreover, the tax system is a huge benefit; there’s no need for businesses to pay fees within foreign incomes. Since the permission covers all possible gaming solutions, a company can provide various games.
Overall, choosing a residence for your business is a complex process, and its complexity varies depending on the games you provide, your scale, etc. For example, you start learning how to get a gambling license in the US and find out that there’s no option for your kinds of games. Therefore, you may apply for another authority and choose a suitable variant.
If you are looking for a comprehensive guide on how to start an online casino, follow the link and get 8 easy steps to open up your business.
How long does it take to get a gambling license?
To put it simply, the terms depend on the type of license and jurisdiction; still, we are sure you won’t accept that type of answer. So, on average, from applying for a permit to receiving the final response may take up to several months. The factors that impact duration are the quality of your paper, whether you provided all the necessary documents, applying process complexity, whether strong casino software providers run your software, and more.
For example, when it comes to Malta, the online gambling license application process may take up to 6 months according to the 5 complex stages. It offers 4 different types of authorizations, and for each of them, applicants have to provide the following:
- complete personal data,
- established business plan,
- clear marketing plans,
- compliance with operational requirements, etc.
The UK license offers three main types with a duration period of five years. According to the Gambling Commission, the process of operating your application may take up to 16 weeks.
One of the fastest approvals that you can receive is regulated by Curaсao and takes only up to 6 weeks, depending on the permit type. This term is available if you pay the fee and provide all the required documents correctly. Operators need standard information, such as personal data, company specifics, resumes and CVs, bank details, etc.
The Isle of Man offers a license that takes from 10 to 12 weeks in terms of completing the application form correctly. Despite the fact it takes a bit longer than in other jurisdictions, with this permission that covers all types of games, you can operate legally on the Isle of Man for 5 years.
Antigua and Barbuda offers two kinds of assignments, each of which takes up to 3 months to process your request. First of all, you have to register your company. Further steps are passing UBO Identification (Ultimate Beneficial Owner) and transferring all the equipment to the jurisdiction server.
The process of getting permission is complex and time-consuming, so here are some tips for you to speed up approval:
- Check the commission guidance. Depending on the permit you choose, ensure to read the rules and regulations so that you will not be surprised by unexpected fees or requirements.
- Provide max precision application. You can start with checking your software and collecting documents, on average, you will need your CV, copy of ID documents, proof of residence, Responsible Gaming policies, and others.
- Contact operators for updates. You may be asked to provide additional documents or other information, so ensure to answer quickly and accurately.
How much does a license for gambling cost?
Approximate license cost of the most popular gaming licenses.
According to IBISWorld, the growth of the global online casino business increased by 6.1% between 2018 and 2023. Being one of the most profitable and fastest-growing industries, online gaming has become a priority for more and more companies.
That’s why having a license is essential for those who want to remain competitive and partner with worldwide financial institutions and brands. Want to learn more about prices for each jurisdiction? Keep reading to find out.
Malta
Malta jurisdiction offers B2C and B2B licenses according to the type of games you provide.
B2C | B2B |
Fixed Annual Licence Fee of €25,000 for Type 1-3 and €10,000 for Type 4. | €25,000 to €35,000, according to the annual revenue. |
Also, despite the type you choose, you have to pay an additional gaming tax of 5% of the revenue, a corporate tax of 35% of generated profit, Compliance Contribution, and Administrative Fees.
According to MoneyGate, it’s essential to remember that the Malta Gaming Authority (MGA) can change prices and charge additional fees.
The UK
The gambling license cost will vary depending on the license type we have considered above. First of all, you have to pay a £370 non-refundable fee to apply for the permission. The cost of obtaining a license is up to £100,000, and here’s a calculator that allows you to define the final price.
Keep in mind that you also have to pay additional fees that include corporate tax and 20% VAT (Value-added tax). Overall, you will have to pay the first application fee within 30 days after you receive your permit.
Isle of Man
The Isle of Man offers 4 different types of permission, each of which has its prices and conditions. According to the official website data, you have to pay:
License type | Cost |
OGRA application, all types | £5,250 |
OGRA full license | £36,750 |
OGRA sub-license | £5,250 |
OGRA network services license | £52,500 |
OGRA token-based software license | £52,500 |
OGRA software | £36,750 |
Antigua and Barbuda
Islands offer online casino and totalizer approvals, each of which is defined with a specific price. The permit for a wide range of online games, like casinos and related, which an Interactive Gaming license covers, costs $100,000 and is valid for one year. The initial fee for submitting and examining your application documents and website costs $15,000, and it’s non-refundable.
Curacao
The price depends on whether you choose the Sub-license or the Master one. You can expect it to cost from €15,000 to €25,000. There are also additional fees; for example, a B2C license requires €1,500 to pay before applying for the permit. However, there’s no VAT (Value-added tax), and corporate income tax is 2%.
Despite the jurisdiction, remember that you have to consider the need to renew your subscription yearly, administration taxes, non-refundable fees for application forms, and other additional payments.
Note! You will define the final price after contacting operators or while applying for permission through forms.
Sum up on online casino license
In this blog post, we have considered the most widely chosen jurisdictions, their rates, the regulatory environment, approximate time frames, and how to get a gambling license. Therefore, companies that want to have possibilities to expand their gaming solutions, partner with worldwide brands, and operate legally choose to obtain permission to provide online gambling solutions.
Considering all the requirements a chosen jurisdiction has, you can take your time and prepare for the daunting application process. This procedure requires a significant amount of time and resources, so consider asking operators to help you with documentation and other essential stages, such as evaluating your software.