If you intend on opening an online gambling business, you need to consider if you need a license to operate. The world of iGaming is generally heavily regulated due to risks related to fraud and money laundering but there are many jurisdictions that strike a healthy balance between protecting themselves and customers and allowing the industry to flourish.
Governments across the world have started to introduce, update, and amend national legislation to oblige online gambling site owners while creating an environment of confidence for clients. In the long term, these changes and developments are a big advantage to the sector that is estimated to continue growing at a rate of around 10% per year.
Which jurisdiction to choose?
There are two kinds of online gambling jurisdiction, those that have developed specialist gambling laws and regulations to nurture the expansion of the industry, and those that have not. Countries that have legislated in favour include the UK, Malta, Jersey, and Gibraltar. Countries such as Costa Rica do not have any specific gambling legislation- it does not prohibit, or regulate it. In cases such as this, one has to register an offshore non-resident company and to carry out legal activities from the country.
Why do I need a gambling license?
First and foremost, operating without an online gambling license means that you are operating illegally and leave yourself open to prosecution and even being shut down. Therefore, it is in your best interests to either get a license or operate in one of the few jurisdictions where it is not required. Be warned, however, doing the latter can limit your activities in other countries as well as impact your credibility.
- An online gambling license allows you to operate in a range of countries without any legal issues;
- In some jurisdictions, an offshore non-resident company and its activities are not subject to tax, or benefit from a lower rate;
- Holding a license gives you credibility, authenticity and enables players to have trust in you. Some jurisdictions are more reputable than others, so choose your license wisely;
- If you acquire an online gambling license from Costa Rica, you are not required to present your accounts annually;
- Customers and potential customers are able to easily see if you are reputable or not, and they have information on how to pursue recourse if things go wrong.
- If you plan to engage a payment services provider you need to be able to provide a valid license for your operations or show that you are operating legally in your jurisdiction;
- If you want to open a bank account for your business, you need to be able to show that you hold a valid license or are operating legally in your jurisdiction;
- In order to work with some software and hardware providers, you will need to provide evidence that you either have a license or are operating legally.
If you are planning to open an online gaming business in 2020, you need to put careful consideration into where you want to be established, the license application process, ancillary corporate and fiscal needs, and other matters such as engaging with payment providers and opening bank accounts. Fast Offshore has over two decades of experience doing all of these things in a number of different jurisdictions. As such we are the perfect choice for taking care of your administrative burden, letting you focus on working towards your success. So, what are you waiting for? Contact us today!