How much is a gaming license?
Among all the costs for the opening of an online casino, the license takes the first place because it is the largest item of expenditure. Therefore, many entrepreneurs decide to launch their business later or sometimes they take a chance and work without registration. Unfortunately, the acquisition of a license usually becomes the main barrier on the way to the successful launch of your business.
In this article, we will analyse how much does a gambling license cost, of what parts this price consists of, which of them can be reduced, and what may happen if you work without a license. Also, we will consider some alternative options for the opening of your online gambling club.
You have an opportunity to sign up for a consultation with an expert from Gaminator Casino at any time. He will help you to understand the requirements for casino licensing in different countries, choose the best jurisdiction, and even prepare the necessary set of documents. Just fill out the feedback form, and we will call you back.
Where is the gambling commission license issued?
People still have not decided yet whether gambling is a good or still a bad thing. Each country has its own rules for gambling establishments.
Somewhere casinos can operate easily, and somewhere gambling is strictly prohibited but in most civilised countries the government is trying to take control over the multimillion-dollar business. For this reason, it creates extremely unfavourable conditions for gambling projects.
On the other hand, there are offshore countries that welcome casinos and create the most loyal conditions for them in exchange for large treasury revenues. And it is the main reason why the whole world is trying to obtain permits not in their own countries but in offshores.
Why is it recommended to obtain offshore gambling licenses:
- Loyal taxation. Not only low rates or 0% revenue-based levy but also tax holidays, deferrals, and other opportunities.
- Legal activities all over the world. Usually, offshore licenses have an international format, which means that their holders can work all over the world in those countries where such a business is not prohibited. In this case, your casino will be absolutely legal.
- The time period for issuing is relatively short: up to two months. But in other countries, the whole process may take from six to eight months, including the preparatory stage and the collection of documents. Therefore, offshore companies benefit greatly in this aspect.
- Simple reporting. It really is very simple.
- Remote registration. An attorney or an intermediary can file a package of documents. There is no need for you to be present in person.
How to choose a jurisdiction?
To answer this question, you need to start with a business plan. It will help you to understand the potential of your idea. Will you conduct activities only in your own country or somewhere else, do you understand the needs of gamblers, and how to target advertising on them? Or will it be just the first step, after which you will try to enter the markets of neighbouring countries?
Or maybe you want to work only in a certain region because you are sure that the wealthiest gamblers live there? Everything depends on your ambitions, and a business plan will only show you whether the start-up capital for the acquisition of a permit in the jurisdiction you are interested in will be enough.
Licenses of the international type are most often obtained in the following countries: Curacao, Malta, Isle of Man, Gibraltar, Costa Rica, the United Kingdom, and Switzerland.
Why is a gambling license so important?
Put it baldly: it is possible to create and run an online casino without an official license.
But then you will face the unpleasant consequences of illegal work:
- high-rollers (players who place high bets) do not trust their money to a casino without a name and a good reputation: they prefer to know who they are dealing with and never make large deposits in illegal casinos;
- those companies which develop the gambling software, as well as gaming platforms and slot machines, do not sell their products to unlicensed casinos — since the gambling business is often used for money laundering, providers do not like to cooperate with “grey” firms;
- constant blocking, restrictions, and increased attention (or a real retrieval) of the law enforcement agencies.
As you can see, the reasons for working under a license are quite substantial.
How is the gambling commission license issued?
Of course, each country sets its own conditions for issuing a permit.
But in most cases, the whole procedure consists of three steps:
- Preparation. You are planning a future business, see all financial capabilities, and collect a package of documents for the submission. Usually, the list of documents consists of a business plan, the proof of holding of capital that is enough for the bank to make payments to players, the information on the business owners, etc. It is better to check out the full list of documents when you decide on the jurisdiction.
- Application. Check whether you need to submit documents in person or you can do it by an attorney. In some cases, the commission may accept the initial application from the intermediary but then the entrepreneur will still be invited for an interview.
- Decision-making. It may take from two to three weeks or up to three months, depending on the local legislation.
Sometimes there is also the fourth stage. For example, in Malta, you can get a temporary license, under which a company can start conducting gambling activities. After six months, the commission sends auditors, and if everything is fine, the entrepreneur will finally get a full license.
How much is a gaming license?
The average cost of obtaining a gambling license is from fifteen to twenty thousand dollars, and it includes the following components:
- the registration of the company within the territory of the selected country;
- the commission fee for filing an application (non-refundable);
- payment for the work of a local accountant, lawyer, and other consultants;
- translations of documents.
Some entrepreneurs recommend their colleagues to add to the list of costs the price of plane tickets but it is the decision of each person individually.
It is worth noting that the specified price of fifteen or twenty thousand dollars is related to the offshore countries. In Europe, USA or Asia, the cost is much higher.
In addition to starting costs, there are also current expenditures for the use of the permit:
- the license fee (it is paid annually or quarterly);
- operation of online casino servers;
- maintenance of the company's physical assets;
- payment of salary to the employees of the website.
In general, the size of annual costs can reach another twenty thousand dollars. However, as you understand, these calculations are approximate.
How to open an online gambling establishment without the casino licensing procedure?
It is difficult to work without a license but it does not mean that its acquisition is mandatory. Modern laws allow you to obtain a sub-license and conduct activities as a subsidiary of another major casino.
This method has many advantages:
- You save a significant amount of time (a few months).
- Sublicensing is much cheaper, which means you can open a casino with a much smaller starting capital.
- You will not have to deal with the collection of documents, filing reports, payment of taxes, and other legal niceties.
- Your activity is absolutely legal.
However, it is not so easy to find a full license holder who is ready to work with you as a sublicensee. You can contact experts of the Gaminator Casino company, from which you can buy turnkey casinos already with a license. It is the easiest and fastest way to start making money on the gambling market and become the owner of your online casino.
All you need to do is to get acquainted with the personal manager from Gaminator Casino, who will select a license for you, as well as the good gambling software and popular slots, and provide you with a ready-made business. Moreover, you can rent a casino to evaluate its profitability and only after this to purchase a gaming site.
We offer you a unique opportunity to create your own online gambling business that will generate income twenty-four hours a day, even when you sleep.
Do not wait for tomorrow, write to your manager right now: