The iGaming industry has become one of the fastest-growing sectors in the world, with millions of gamers worldwide betting online. Recently, the iGaming industry has experienced remarkable growth and has attracted multiple investors, creating opportunities for start-ups to enter the market.
Incorporating a company gives iGaming businesses a plethora of benefits, including legal protection, limited liability, and financial independence. Incorporating a company enables you to run your business while protecting your personal assets in case of any legal or financial issues. However, the process of incorporating a company in the iGaming sector is a tricky process that requires planning and due diligence. Here are some steps for incorporating a company in the iGaming sector.
Research on Jurisdictions
Choosing an appropriate jurisdiction is critical when incorporating a company in the iGaming industry. Different jurisdictions have different regulations, tax frameworks, compliance protocols, and other legal requirements. As such, you should consider various jurisdictions’ benefits and drawbacks to ensure that you make an informed decision.
Some of the most popular jurisdictions for iGaming companies include Malta, Gibraltar, Curacao, Isle of Man, and the Kanawake. For example, Malta has an excellent reputation for being a pro-online gambling destination, offering a favorable tax environment and a robust regulatory framework. The Isle of Man has become a popular destination due to its low tax rates, political stability, and a supportive regulatory framework.
Put Together Your Business Plan and Incorporate
Once you have finalised your preferred jurisdiction, the next step is to develop a solid business plan. The business plan should include crucial components like financial projections, market analysis, organizational structure, and product development, among others. The business plan will also facilitate funding from investors and lenders. Once you have the business plan, it is essential to take the appropriate legal steps to incorporate the company.
The incorporation process varies depending on the jurisdiction. But it typically involves filling out registration forms, articles of association, Memorandum of Association, and other legal documents. It is essential to engage a reputable expert with years of experience in the iGaming sector to help you. Depending on the jurisdiction, the incorporation process can take a few weeks to several months.
Obtain Licenses
The iGaming industry is heavily regulated, and companies operating in this sector require several licenses to operate legally. The type and number of licenses required depend on the company’s location, target market, and the gaming products offered. Some common types of licenses include:
a. Gaming License
Any iGaming company requires a license to operate legally, the type of which will depend on the type of gaming, and the jurisdiction in which it is based. Most jurisdictions require gaming companies to obtain a remote gaming license, which allows them to offer online gaming to customers anywhere in the world.
b. Payment Processing License
This license is essential if you will be processing customer payments, and you’ll need to be a payment services provider to be eligible.
c. Compliance License
Obtaining a compliance license confirms that you have complied with all regulatory requirements when offering iGaming services. This license is primarily granted by regulators such as the Isle of Man Gambling Commission and Malta Gaming Authority.
d. Software License
If you plan on developing gaming software for your iGaming company, you may need a software license. Being certified by a third-party software testing and certification organization, such as eCOGRA, can also help to demonstrate that your software is secure and fair.
Regardless of the jurisdiction you choose, you must comply with all relevant legal requirements to ensure that you are on the right side of the law.
Develop a Marketing and Sales Strategy
Once you have all the necessary licenses, the next step is to develop a robust marketing strategy that targets your core demographic. Marketing plays a critical role in the success of any iGaming company, and it’s essential to invest in the right channels.
Social media platforms such as Facebook, Twitter, and Instagram have become some of the most effective digital marketing tools to connect with potential customers. Paid advertising and email marketing can also generate significant traffic, while influencer marketing can be an effective way to reach guanine traffic to your platform. Whatever marketing strategy you choose, it’s essential to remain focused on your target market and the types of games and products that resonate with them.
In conclusion, incorporating a company in the iGaming sector is a complex process that requires careful planning, legal compliance, and thorough research. Nonetheless, iGaming companies present significant growth opportunities to investors and entrepreneurs looking to venture into this lucrative sector. By following these steps, you can set up your own iGaming company and succeed in the highly competitive online world. For assistance, every step of the way, Fast Offshore can help. We have worked in iGaming and corporate services for over 26 years. During that time, we have amassed significant experience in many areas. This includes licensing, company incorporating, payments, and compliance. Contact our team to find out more!