To make a long story short, obtaining a gaming license is still perspective. The market shows steady growth and has very positive long-term forecasts.
The yields of the entire gambling sector are expected to show steady growth by 2.92% every year, reaching the overall market size of $254.62 billion by 2030! At the same time, Goldman Sachs evaluates that U.S citizens will spend $45 billion overall on sports betting annually during the next decade.
More and more users across the globe engage in gambling which, on the other hand, has established and steadily bolsters responsible gaming practices. Do you consider getting a gaming license? Professionals from Fintech Harbor Consulting are ready to share the most important points about this promising business opportunity and how to open it for yourself.
What Is a Gaming License?
A Gaming license – that is also sometimes referred to as the iGaming license – is a legal permit allowing operation in the online gambling industry. It is a compulsory condition for launching a casino. Otherwise, you risk facing severe negative consequences: considerable fines, criminal charges, asset seizure, and, of course, closure of business.
On the other hand, a license also gives potential customers enough confidence to start dealing exactly with your casino. A licensed casino is usually a marker for customers – they can get rewards there.
What Benefits Does a Gaming License Give?
If you opt to get a gaming license instead of omitting it, aside from eliminating the financial and criminal risks, you also enjoy numerous business opportunities:
- Get access to a wide market, sometimes even several markets at once. When you obtain a gaming license, you automatically get instant access to the market of the jurisdiction where this permit has been issued. These can be such markets as the USA or Canada. The EU is another promising option. Once you obtain a license in one of the EU countries, you can legally operate across many other countries of the union.
- Sufficient protection for your players. Fair play is essential in the gambling industry. Once you have obtained a license for your casino and established clear rules, these endeavors automatically ensure sufficient player protection.
- Establishing and strengthening a loyal customer base. A legal and trustworthy casino brand is an essential precondition for involving new customers and making them loyal.
How to Become a Holder of Gambling License: Concise Guide
Obtaining a gaming license is a straightforward process, provided that you follow entirely the applicable rules and standards. Here is what the process looks like from the start and up to the end:
Research and development of your business strategy. Each gambling authorization envisages specific operational limits. At a glance, this means you have to consider the players who will enjoy the games and the types of games you would like to offer them as well.
Later, it is essential to determine the specific market in which you plan to operate since every country implements its own legal rules and standards. The latter, for instance, touches on responsible gaming practices and advertising.
If we come back to the rules, they usually cover such aspects:
- Financial thresholds. Establishing a company that operates as a casino may require a sufficient amount of funds on the account. This aspect depends on the jurisdiction. Aside from that, casinos should also pay certain application costs and corporate tax payments.
- Technical standards. All casinos have to meet specific hardware and software requirements. These technical standards cover, among others, system reliability, accessibility, payment processing, etc.
- Security measures. Any casino should apply sufficient measures to protect the site from security breaches, ensure effective verification, implement anti-money laundering measures, etc. At a minimum, casinos need to have effective encryption algorithms.
- Consumer protection. Each gambling platform has to ensure sufficient data protection. Failure to do so may result in severe fines, like the EU. In the latter case, it is essential to comply with the strict requirements of the General Data Protection Regulation (GDPR). Maintaining the fairness of the game is essential in any case as well.
Once you have defined all of these aspects, you may proceed with preparing the documents and applying for your license. If you have any doubts or need assistance with making the right choice, Fintech Harbor lawyers are ready to deliver you turnkey registration solutions.
Preparing the registration package. Applying for a gaming license actually needs a bunch of documents that have to be executed in line with the applicable legal requirements. The specific list, of course, varies depending on the chosen jurisdiction. However, on average, these are requested:
- precise commercial plan showing clearly the nature and scope of future business, including the list of games that will be offered
- information about the founders, managers, and beneficiaries
- technical information
- legal and non-disclosure agreements
- proof of funds
- security measures
- internal policies
Other documents may be in place as well. Elaborating on each of them needs special attention and qualification. Fintech Harbor attorneys are ready to apply their vast expertise in this area.
They are ready to help you with preparing a top-notch set of documents for submission.
- Application. Once the documents are completed as required, paying an application fee before submission is required too. The terms of consideration vary, given the chosen destination.
- Providing additional information and/or documents (optional). While reviewing your application, the regulator may need extra details and documents to confirm your compliance with the applicable laws. Typically, the state officials guarantee a specific time for submitting extra details. That is why it is crucial to polish your business conception and documents before the regulator’s background check has started.
Don’t Test Your Luck: Comply with the Laws in Full and Become a Licensed Market Player!
Gambling is a golden mine under one yet complex condition. You should operate legally and fully comply with the applicable rules.
Choose the jurisdiction that promises the highest yields. Elaborate on a clear business plan and prepare the set of documents as required.
Comprehensive review and preparation always give the exact results. Request professional assistance to make these high yields closer!
