One of the first requirements a trusted online casino must comply to is a gambling license. Every reliable business starts with obtaining such a license, which allows the online casino to operate legally online but also warrants the online casino as being trustworthy to its players. The gambling license for an online casino represents the commitment of the online casino to fair gaming policies. The online gambling license for an online casino is also an indicator of the casino’s transparency in conducting its business and a security certificate for the gamblers.
For your safety and good gambling experience, we recommend to always play in a licensed online casino. Choosing a shady online casino, with no online gambling license is going to affect your information safety, your banking information safety and can end up in putting yourself in danger as well.
Moreover, a merchant account in a bank is impossible to set up without this license. Banks will always carefully select its partners and an online gambling license is an open door to collaborating with a company, as it is acknowledged by a regulatory body under certain jurisdiction.
But the online gambling legislation can be found to vary greatly from country to country and you can find many jurisdictions under which gambling licenses are issued for online casinos. So, which are the most trusted? Well, to obtain such an online gambling license, the online casino must meet the requirements of the chosen jurisdiction, so they can all be considered trustworthy by you, the player.
The most common and widely used online gambling jurisdictions for online casinos:
- United Kingdom
- The Isle of Man
- Costa Rica
As online casinos are obliged to own an online gaming license and operate under a certain jurisdiction, it turns out that most online casinos operate from islands. Thus, the most popular destinations to accommodate online casinos are destinations such as Gibraltar, Malta, Antigua, Curacao, Barbuda, Belize or Seychelles and many more. And all the regulations of jurisdiction, however, they may differ, prevent the online casino from not paying the player the winning he has won.
However, there has been an escalation in the criminal activity concerning online casinos in recent years, and most of the online gambling licensing bodies have created a united front to minimise the problem. However, there are still a lot of countries which have outlawed online gambling and, in those countries which players are allowed to gamble online, they may do so in online casinos with offshore jurisdictions.
Obtaining and registering under an online gambling jurisdiction should be a priority for all online casinos. The possession of such a licence ensures the players that the online casino is committed to conducting its business lawfully and honestly, gaining the trust of its players and their return. Online casinos should have the aim to best accommodate their players in order for them to trust the casinos and retain the commitment to the website.
Online gambling licenses
Curacao – The island of Curacao is part of the Netherlands Antilles and offers certified jurisdiction under the Curacao Gaming Control board governing body. It has been offering online gambling licences since 2002, with a broad certification, as well as licensing capabilities. This is one of the most common online gambling licenses used by online casinos worldwide
Malta – Malta is the first European country to introduce remote gambling regulations and also the first to start offering online gambling licences. The Malta jurisdiction is preferred by many online casinos due to a large number of reasons, among which we can mention the fact that it is the gateway to many international banks which make banking cards processing so much easier.
United Kingdom – The online gambling services provided in the UK are regulated under the UK Gambling Commission and online casinos are required to obtain such a license if they are aiming to have UK players on their websites. The UK gambling license is also mandatory if an online casino wants to promote itself on the local market.
Gibraltar – The regulatory body for online gambling in Gibraltar is called the Gambling Ordinance and covers online games such as bingo, poker, betting and online casinos.
Alderney – The Alderney Gambling Commission opened the online gambling market in Alderney in 2005 which permitted any online casino with a licensed offered by Alderney to operate internationally.
The Isle of Man – The Isle of Man has 2 bills which concern online gambling legislation: The Electronic Transactions Act and the Online Gambling Regulation Act. These offer the premises for what is today one of the most sought-after online gambling jurisdictions, as it has strict requirements and insures as such the players that the online casino operated at the highest standards.
Belgium – The Belgian online gambling license is one of the strictest there is. Even so, as gambling is considered to be very popular, online casinos are allowed to operate under state laws or apply for an online license there.
Denmark – The Danish Tax Authority is the governing body which offers online gambling licenses for online casinos, as well being the regulatory body. This institution falls under the Danish Ministry of Taxation, which operated through the Danish Gambling Authority.
Estonia – In comparison with the governing bodies which regulate online gambling in the other countries mentioned, Estonia is at its beginning in offering online gambling licenses. However, it is comparable with those much older and has one particularity: online casinos need to obtain both an activity and an operation license if they want to operate under Estonian licence.
Italy – The Autonomous Administration of the State Monopolies is the Italian governing body which regulated the country’s online gambling aspects. It has been established in 2006 and it is the one to release online gambling licenses, as well as the one to control the online casinos in order to comply with the regulations and laws.
Costa Rica – When it comes to Costa Rica, things are a tad more complicated. The country does not have a governing body for online gambling licenses per se, it does only offer a data processing license for online casinos.
Kahnawake – The Kahnawake Gaming Commission is the governing body for the Kahnawake online gambling licenses. Under this license, an online casino can operate its games, as well as poker and sports booking.
What is an offshore gaming license?
The online gambling industry is an ever-growing market. This is nothing but good news for us, the players, as the completion offers us the benefits of game variety, bonuses offered by different operators, generous banking possibilities and many others. But the situation also benefits the online casinos, as they gain access to players worldwide, 24/7. And as such, there are more and more countries to regulate the online gambling sector each year, issuing online gambling licenses.
At the moment, there are almost 80 countries in the world to offer one type of gambling license or another, depending on the needs and the activity of the online casino. However, online casinos have to take into consideration a couple of factors when choosing the online gambling license which bets fits their needs: the players residence, as some gambling licenses are restricted to their own citizens, the costs, as an online gambling license can cost between 15.000 and 100.000 dollars, as well as their gaming branding, as the brand is influenced by the license in the players’ eyes.
How do online casinos obtain an online gambling license?
The process of obtaining an online gambling license is rather complex. Even if the conditions may vary from one country to another, there are some indicators which are common to all. First of all, an online casino needs to provide proofs that the owners, partners or directors have no criminal record. They also have to provide valid IDs, bank references and a business plan. Moreover, the online casinos are required to have done due diligence concerning anti-money laundering regulations, as well as prove that they are socially responsible and offer safety for their clients’ funds.
In addition, the online gambling license is not given for life for online casinos. After completing all the steps and paying the license fee, online casinos have to renew it each year. This means that the online casino has to go through verifications each year so that they demonstrate they comply with the regulations.
All these regulations are imposed in order to provide players with a safe platform, operating at the highest standards in online gambling. The regulations are also there to discourage the ones which may be involved in illegal activities or organized crime. This is one of the reasons why online casinos need to demonstrate integrity and good financial standing, as well as an ethical business record in order to get licensed.
The remote gambling license allows an online casino to offer its services to players via the internet, but also through radio, television, telephone and other means of communication. However, the remote gambling operators are required to have both such a license and a non-remote one. The remote license must include, among others, the type of gambling the operator is involved in.
The cost for obtaining a gambling license via the internet may vary a lot, depending on factors such as the country the operator is seeking a license in, the regulation approach, the type of the license and so on. For example, gambling licenses in Curacao can have an approximate cost of 22.000 dollars, in comparison to countries such as the Malta or UK, where the cost is much more expensive.
As mentioned above, an online gambling license is an indicator that the business is legit and conforms with strict regulations to offer the players a safe environment and a pleasant experience. Some of the most appreciated licenses are the ones offered by the United Kingdom and Curacao.
All online casinos need to have an online gambling license before they operate any games, be it online pokies, poker, roulette, sports betting and so on. So, before they go live, the license needs to be up and running.
Online casinos get online gambling licenses for a number of benefits, the most important ones being:
· Reliability and fairness to players – a player will place its trust in a licensed online casino and is more likely to return
· Banking – banks have a strict policy and partner only with the licensed online casinos out there, offering their services in account openings, payments, deposits and withdrawals and so on
· It is safe and legal – an online casino which operated under an online gambling license is protected by the law, offering safety in terms of personal and banking information for their customer
Final few words
We strongly recommend you conduct your gambling activities exclusively in licensed online casinos, for all the reasons mentioned above. In addition, we recommend becoming familiar with the legal climate in the country you are resident or gamble on in terms of gambling. It will save you time and effort, as well as create a safe environment to enjoy your favourite pastime.