There has never been a better time to get into online gambling.
Recent reports have shown that despite a global economic slowdown, the online gambling industry has still managed to maintain an optimistic growth. Over the last four years, the global market size has grown at an average rate of 13.71% and that by 2025 it could be worth a staggering $80.65 billion.
Overall the future is looking rosy with expansion at a rapid pace projected due to increased gambling rates, more disposable income from consumers, higher levels of confidence in operators, more internet use, and the increase in the use of smartphones and tablets.
In Malta, one of the biggest, most dynamic, and reputable online gambling jurisdictions in the world, similar reports have been made by the Malta Gaming Authority. In their Annual Report and Financial Statements for the financial year ending December 2018, they noted how the industry had expanded by 12.1%, generating just over EUR 1.4 billion in gross value. Its share in the countries economy peaked at 13.2% of the GDP, making it one of the main sources of income for the small EU State. In addition to this, the industry provided almost 7000 local jobs with 88% of them engaged in the online sector.
A total of 209 applications were received with 93 issued. A total of 63 were refused and the rest are still going through the vetting process- a testament to the strict due diligence procedures that have resulted in their sterling reputation.
Malta’s popularity is expected to have grown even more over the last 12 months, due in part to its revised Gaming Act that empowered the MGA to strengthen its regulatory oversight, whilst simplifying license procedures for applicants. Instead of a number of different license types, there are now just two- acknowledging the fact that businesses may want to expand and diversify their gaming offerings without being bogged down in red tape.
Across the Atlantic in Curacao, the government have been regulating online gambling since 1996, making them one of the first jurisdictions in the world to do so. Here it is considerably cheaper to obtain a license and tax is just 2% on net profits, making it an idea startup jurisdiction.
In Costa Rica, there is no requirement for an online gambling license of any kind to operate online gambling within or from the country, but entrepreneurs are required to set up a Costa Rican Gaming Company. This allows them to offer any kind of gambling over the internet as well as benefiting from a zero-tax status. Over recent years, the number of operators setting up shop in Costa Rica has exploded, and it makes a great place to test the concept of a business, before considering upgrading to a Maltese gaming license or similar.
In terms of once-popular jurisdictions such as the UK, Gibraltar and the Isle of Mann, the recent confusion and continued uncertainty surrounding Brexit, has cast a big cloud over its online gambling industry. If the UK leaves, this will have significant implications on tax agreements, trade, finance, banking, regulations, data protection, and compliance, and has already led to a number of operators preemptively relocating.
Those looking for a reputable jurisdiction in the EU choose Malta, others look further afield to places such as Curacao, Costa Rica, and even Kahnawake.
Also with the advance of cryptocurrency and the increasing adoption of blockchain technology, there is an increasing number of opportunities to dovetail the two industries together, capitalising on trends. Curacao has already issued blockchain licenses to cryptocurrency gaming start ups and with the help of a professional, one can be obtained in as little as one week.
As crypto continues to move more into the mainstream, the iGaming industry adoption of this technology is paramount to its success, and the continued growth of both sectors.
Fast Offshore has over two decades of experience in online gambling, corporate services, and more recently, cryptocurrency and blockchain. With our finger on the pulse we are able to understand clients needs and advise them as to what is the best next step to take in their plans. If you have an idea, a dream, or a vision about starting your own iGaming and, or cryptocurrency business, then reach out to us today to benefit from our years of professional experience, assisting businesses make the best decisions for them.