Online gambling licenses are official documents that grant entities legal permission to run a gaming enterprise in a specific region. It is necessary to regulate internet casinos in the same way that land-based casinos are governed. All online casino operators need a license.
A gambling license covering the jurisdictions in which the operator intends to provide its games of chance (such as video slots, table games, and sports betting) is required. It’s not always easy to get one, though. They are costly (the price of a license alone can be a considerable barrier to entrance into a market), and they impose compliance requirements on the business.
In this article, we tell you about three of the top gambling licenses a casino can have.
MGA
For a long time, Malta has served as Europe’s primary iGaming destination. That’s because the country offers a legitimate license that allows casinos to enter the lucrative European market. The licensing procedure and the granting of an operator’s license are both handled by the Malta Gaming Authority (MGA). They are also in charge of rulemaking and enforcement.
However, the licensing procedure in Malta is lengthy. There are at least five phases that a potential operator must go through, each of which includes audits for compliance. The application review process can take up to four weeks, after which a six-month provisional license will be issued. After that, a five-year license is issued once rigorous testing has been completed.
Fit and proper business planning is required to ensure a casino’s feasibility and financial reserves, and a system evaluation is part of the process. It is evident, however, that the investment is worthwhile since numerous legal online casinos and sports betting businesses have made the switch to this license. There is a lot of faith in it because it provides access to the European market.
UKGC
The UK Gambling Commission is the government agency responsible for overseeing gambling in the United Kingdom, and it issues a wide variety of licenses to businesses. There are a variety of intermediate and industry licenses, as well as five types of remote betting ones (for example, taking sports betting on real events and on virtual events requires the acquisition of two different licenses).
One disadvantage of a license issued by the United Kingdom Gambling Commission is that operators that wish to diversify into other forms of iGaming must apply for a new license in each jurisdiction in which they wish to operate.
In addition, the UK Gambling Commission (UKGC) has a notoriously lengthy authorization procedure, which can take up to 16 weeks, and the body has recently begun restricting the freedom of operators in the country.
Curacao
Curaçao is a tiny Caribbean island that has made a big name for itself in the global iGaming market. This is mostly because the license is inexpensive and little effort is required to obtain it.
Master licenses and sub-licenses are the two main types of licensing agreements. Sub-licensing applications for new businesses are submitted to one of the four master license holders (a number that has been unchanged since 1996). Sub licenses are valid for the same amount of time as their parent license, and master licenses must be renewed every five years. The primary benefit of this method is that it consolidates licensing for iGaming into a single permit for all online casinos. In some countries, such as the United Kingdom, different licenses are required for various forms of gambling.
Conclusion
While there are other licenses out there, these three are the most common. If you see them, know that you’re in for a good time.
