Why Having a Gambling License is Important
This simple question has multiple answers that can be grouped into the following major blocks:
- Firstly, it ensures legality and official recognition, which helps strengthen your reputation and gain the trust of your clients. It is like a seal of approval!
- Moreover, the aforementioned cherished document protects the rights and interests of both operators and customers. For example, in the realm of intellectual property and rights to games and software.
- It also guarantees the security of your business, acting as a shield against illegal operators.
And the cherry on top? You can enjoy tax benefits, such as exemptions and preferential tax rates.
It’s a win-win situation no matter how you look at it!
Types of Gambling License: Overview and Differences
Now let’s take a closer look at the types of gambling licenses and understand their general overview and differences. There are different types of available licenses, each offering unique opportunities and distinctions:
- For example, there is an online gambling license, which allows operators to offer their services on digital platforms.
- There is also a land-based casino license, granting permission for operating a physical casino.
- Another notable type is a sports betting license, allowing companies to offer services for placing bets on sports
Steps to Obtain a Gambling License
Allow us to tell you about the extraordinary benefits of obtaining a gambling license through Finexmo.
Think obtaining a license is a complex process?
In reality, for a novice in this field, yes.
However, our team of lawyers has long mastered achieving this goal by breaking it down into clear and manageable stages:
- We conduct a comprehensive assessment of your project to determine the most suitable country for licensing.
- We assist you in preparing the necessary documentation and guide your application through all stages of the application process.
- We work closely with regulatory bodies to ensure compliance with requirements and seamless communication.
Our experience and industry knowledge streamline the entire process, saving you time and effort.
Requirements for Applicants for a Gambling License
There are three important qualities that applicants for a gambling license must possess:
- Legal Age.
Being of legal age is a fundamental requirement for many types of activities, ranging from driving a car to entering into marriage. It is necessary for applicants to have reached a certain age to be eligible for a gambling license.
- Impeccable Reputation.
Reputation helps protect the interests of players and ensures that license holders are trustworthy and act with integrity. Therefore, applicants are often subject to background checks to ensure they have a clean record and have not been involved in any criminal or unethical activities.
- Sufficient Financial Resources.
Financial stability is a must for effectively running a gambling business. It encompasses not only the payment for the license itself or its renewal but also the company’s maintenance, covering operational expenses, making payouts to players, and potential obligations. That’s why specific financial requirements are included in the list of candidate qualifications.
Are you interested in knowing an approximate amount? Keep reading, and we will tell you about the cost of licenses in the next section.
Cost and Timeline for Obtaining a Gambling License
How much will a license cost specifically for you and your business?
We can answer this question as soon as you give us a call and tell us about the project you want to implement in the gaming industry. Our team of Finexmo specialists will recommend the best country to obtain a license for your idea and calculate the cost of the process, including all mandatory expenses.
The required amount of money varies depending on the country where the license is being issued, the type of license, the size of the business, the type of gambling activities, and other factors. Without knowing these details, we can only say the following: it can range from a few thousand euros to tens of thousands of euros.
However, we can suggest countries to consider if you are seeking a license at a lower cost. In this case, you may consider Vanuatu or Curacao. On the other hand, if quality and a high level of reputation are important for your project, be prepared to invest significantly in Malta, Portugal, or the United Kingdom.
The processing time for a license application varies from 2 months to a year. The fastest countries are Vanuatu or Curacao, as mentioned earlier. With a good document package, it can take 2-3 months to obtain a license. The average processing time for countries such as Lithuania, Latvia, Estonia, Slovakia, Cyprus, Malta, Poland, and Portugal is around 3 months if circumstances are favorable, but often it can take up to 6 months.
The Czech Republic and Hong Kong can take up to 8 months for the review process. The record holder for the longest decision-making process for issuing a gambling license is the United Kingdom. Lucky you if it only takes 6 months! Even with impeccable documents, specialists in the United Kingdom may take a whole year to consider the response.
Taxation and Financial Considerations for Licensed Operators
When choosing a country for conducting a gambling business, it is important to consider tax rates. Among countries with low taxes, Vanuatu and Curacao can be mentioned, where the rate is approximately 1.5-2%. Average taxes are set in Malta, at around 5-6%. Meanwhile, countries with high taxes include the United Kingdom with a tax rate of approximately 15% and Czech Republic and Lithuania (up to 30%).
What to Do After Obtaining a Gambling License
Congratulations on obtaining a gambling license!
So, what’s next, you might ask?
Now it’s time for the gradual and effective development of your business. Experienced marketers, professional lawyers, and advanced technical specialists can assist you in this endeavor. Pay attention to the players’ desires, stay updated on the latest trends in the gaming industry, and continue riding the wave of success!