How to Get a Gambling License
Discover the pros, cons and costs of iGaming licenses in Malta, Curaçao, Anjouan, Kahnawà:ke, and Tobique.
November 20, 2024
.png){kind=spacer}
The iGaming industry is rapidly evolving, with cryptocurrencies and blockchain technology playing a crucial role. As a result, obtaining the right gambling license has become more important than ever. Several crypto-friendly gaming licenses are now available, each adapting to the unique challenges and opportunities presented by digital currencies. The most popular online gaming licenses include those from Malta, Curaçao, Anjouan, Kahnawà:ke, and Tobique. These licenses differ in their treatment of crypto transactions, KYC processes, and regulatory compliance.
For those looking to launch a crypto-focused iGaming operation in 2024, it's essential to carefully consider each of these factors to determine the most suitable license for blockchain-based gambling.
A gaming licence is like an official permit to operate in the iGaming sector that verifies your casino meets specific standards for fairness, security, and responsible gaming. These are the most common gambling licences available right now:
To legally operate gaming services in Malta, companies must secure a gaming license. This requirement is mandated by the Gaming Act, enacted in 2018. The legislation covers a wide spectrum of gaming activities, encompassing both physical and online casinos, as well as various games of chance.
Serving as the principal regulatory entity for Malta's gaming sector, the Malta Gaming Authority (MGA) oversees both land-based and online gaming operations. The MGA grants gaming licenses that are highly esteemed within the global gaming community. The MGA presents two primary license categories:
These licenses are subsequently categorised into four types based on the specific nature of gaming activities:
Furthermore, the MGA issues a "Recognition Notice" to licensed entities from other EU/EEA Member States, allowing them to conduct gaming services within Malta.
Upon obtaining a license, companies must adhere to a set of regulations, which necessitate the implementation of robust Anti-Money Laundering (AML) procedures. Licensees are obligated to verify and authenticate a customer's identity prior to permitting gambling activities. Essential information to be collected includes, but is not limited to, the customer's name, residential address, and date of birth.
Additional regulatory obligations encompass:
It is mandatory to submit suspicious activity reports and related records to the MGA.
As per the Malta Gambling Authority's (MGA) official report, 56% of Malta's population is involved in gambling activities. Statista forecasts that Malta's online gambling market will generate revenues of USD 331.4 million (EUR 304.5) in 2024.
Curaçao, a small Caribbean island and constituent country of the Netherlands, has been a prominent hub for online gambling licensing since 1996. The Curaçao Gaming License is one of the most popular and accessible online gambling licenses in the industry. The Curaçao Gaming Control Board (GCB) is responsible for granting licenses and supervising the online gaming sector on behalf of the Minister of Finance.
Curaçao offers a single, all-inclusive license that covers various forms of online gambling activities, including casino games, sports betting, poker, and lottery games. The key objectives behind the Curaçao Gaming License include:
Applicants must be legal entities incorporated under Curaçao law with a registered office in Curaçao. They must manage player registration, verification, and funds.
According to Curaçaos Gaming Control Board, the license proved so popular that the regulator has at times struggled to meet the overwhelming demand of applications.
The Anjouan Gaming License, issued by the Anjouan Betting and Gaming Board (ABGB), offers a new option in the online gambling licensing landscape. Issued by Anjouan, an island in the Indian Ocean that is part of the Comoros archipelago, this license enables companies to legally operate a wide range of online gambling activities, including casino games, sports betting, and blockchain-based gaming.
The introduction of this license is part of Anjouan's strategy to diversify its economy beyond traditional agriculture. By leveraging its autonomous status within the Union of Comoros, Anjouan aims to create new opportunities in the digital age, positioning itself as an emerging player in the global online gaming industry. Consequently, the Anjouan Gaming License is designed to offer several features that make it attractive to operators. It provides a universal license that covers a wide range of online gambling activities, allowing for flexibility in operations. The application process is relatively quick and straightforward, typically taking only 3-4 weeks to complete. Financially, it offers attractive conditions, including no tax on gross gaming revenue. Licensees will have to perform an annual renewal of the license to ensure ongoing compliance, but will have the flexibility of using different trademarks and internet domains, allowing for diverse branding strategies.
While the Anjouan Gaming License offers advantages in terms of cost and speed, particularly appealing to startups and smaller operators, it's important to note that its relatively lighter regulatory touch may impact its perception in some markets. Operators should carefully consider their target markets and long-term business goals when choosing this licensing jurisdiction.
The Kahnawà:ke Gaming Commission (KGC), established in 1996, oversees gaming licenses in the Kahnawà:ke Mohawk Territory, Quebec, Canada. As an autonomous body independent from the Canadian government, the KGC leverages Kahnawà:ke's sovereign status to offer a unique licensing option in the iGaming industry. It was one of the first jurisdictions to recognise gaming industry opportunities and regulate interactive gaming. The Kahnawà:ke Gaming License allows operators to conduct various online gambling activities, including casino games, poker, and sports betting. Licensees can host gaming servers within the Kahnawà:ke territory and offer services globally, with some market restrictions.
The Kahnawà:ke Gaming License offers a comprehensive suite of features that make it an attractive option in the iGaming industry. It provides multiple license types to accommodate various aspects of iGaming operations, coupled with a thorough application process that includes business plan reviews and background checks. The license imposes strict operational requirements, including AML regulations and responsible gaming policies, while also offering attractive financial considerations such as 0% tax on gross gaming revenue. Licensees must adhere to rigorous technical standards and undergo regular audits, reflecting the strong emphasis on player protection and fair play. This balanced approach of regulatory oversight and operational flexibility, combined with cost-effective licensing solutions, has made the Kahnawà:ke Gaming License popular among both startups and established operators in the iGaming sector.
The KGC offers several types of licenses, including:
The Tobique gambling license, issued by the Tobique Gaming Commission (TGC) under the authority of the Tobique Gambling Act, 2023, represents a unique and comprehensive approach to online gambling regulation. Originating from the Tobique First Nation in western New Brunswick, Canada, this license offers operators the flexibility to establish a presence in numerous global locations with minimal restrictions. The TGC, as the designated regulatory authority, maintains high standards through vigilant supervision, ensuring compliance with strict anti-money laundering and counter-terrorism financing regulations.
The Tobique gaming license offers unique benefits in the online gambling industry. Its international adaptability, recognition from a legitimate authority, and wide-ranging coverage of gaming services provide operators with credibility and flexibility. The license's streamlined, all-encompassing approach simplifies the regulatory landscape, allowing licensees to offer a comprehensive portfolio of iGaming services under a single license.
This license presents a cost-effective alternative to more expensive jurisdictions while maintaining a reputable regulatory framework. With fast processing times, typically 3-4 weeks, operators can quickly enter the market. The license also offers flexibility in company formation and access to global markets with minimal restrictions, making it an attractive option for operators seeking international expansion.
Submission of a detailed business plan
The Tobique gaming license is a relatively new offering in the online gambling industry, and as a newcomer in the field of online gambling regulation, it has positioned itself as an alternative to more established licensing jurisdictions like Curaçao.
A gambling license is essential for various entities involved in the gambling industry. This includes:
In essence, any individual or organisation that provides gambling services to the public, whether through digital platforms or physical locations, must obtain a gambling license. This licensing requirement ensures legal compliance, protects players, and allows these entities to operate ethically within their respective jurisdictions. By obtaining a license, gambling service providers demonstrate their commitment to following regulations and maintaining the integrity of the industry.
Legal Compliance: A gambling license is an official permit that allows an operator to legally provide gambling services to players. It ensures the operator complies with national regulations and is not in breach of legislation.
Player Trust and Protection: Licensed operators gain player confidence as the license indicates state control and oversight. Players can trust that the operator is legitimate, will pay out winnings, and adheres to responsible gambling principles.
Market Access: Many jurisdictions require operators to have a license to offer services to their residents. A license can provide access to specific markets and allow for legal advertising and promotion within those markets.
Regulatory Oversight: Licenses come with regulatory requirements that help ensure fair play, prevent money laundering, and protect vulnerable individuals. This oversight helps maintain the integrity of the gambling industry.
Business Sustainability: A licensed operator can operate openly without fear of sanctions from regulators (except in cases of license violations). This allows for building a sustainable business model.
Advertising and Sponsorship Opportunities: In many jurisdictions, only licensed operators are allowed to advertise their services or sponsor sporting events, providing valuable marketing opportunities.
Financial Services Access: Licensed operators often have easier access to banking services and payment processors, which are crucial for online gambling operations.
Competitive Advantage: A license allows operators to compete with top-tier online casinos and use premium software providers, enhancing their offering to players.
Global Expansion: Certain licenses (like Kahnawà:ke or Curaçao) can provide a pathway to operate in multiple international markets.
Avoiding Legal Issues: Operating without a license in regulated markets can lead to severe legal consequences, including fines and criminal charges.
Eligibility requirements vary by jurisdiction, but generally applicants must be at least 18 years old (or older in some jurisdictions) and must pass background checks. Often, financial stability and industry experience must be demonstrated to the license issuer. Applicants for some licenses may find the regulating bodies’ questions to be quite invasive. Some authorities may want information on your criminal history (typically, a clean record is required), as well as demonstrable ability or willingness to comply with regulations.
Many jurisdictions do not have strict citizenship requirements for license applicants; however, some may require a local business presence or partnership. Often, licenses are available to citizens in most international jurisdictions. For example, the Anjouan Gaming License covers 186 countries, but notable exceptions include the United States, the United Kingdom, Australia, the Comoros Islands, and a few European countries.
While citizenship is not always a barrier, obtaining a gambling license typically requires meeting strict eligibility criteria related to character, finances, and industry knowledge. The specific requirements depend heavily on the licensing jurisdiction. Non-citizens can often apply, but may face additional scrutiny or requirements in some places.
It is worth noting that the time it takes to get each license can vary depending on the correct submission of documents (if the submitted documents are not correct, this can cause delays). Sometimes licensing authorities will require additional documents or requirements that can also lengthen the process.
Malta Gaming License: Malta is an EU Member State, and its license is considered one of the most reputable licenses in the world. This comes at a price—the application process for a Malta gambling license is known for being extremely detailed and comprehensive and can take between 12 and 18 weeks to complete. The Malta Gaming Authority requires applicants to pass ‘fit and proper checks’, pass a business and technical ability review, a system review, and finally a compliance audit.
Curaçao Gaming License: The island of Curaçao has been offering its online gaming license since 1993 and can have one of the quickest turnaround times out of all other licenses. That being said, there have been delays with license issuances due to high demand, and with a standard timeframe for applications set at 4 to 8 weeks, operators should be mindful that this may take longer.
Anjouan Gaming License: The process for acquiring an Anjouan license is the shortest out of all gambling licensing jurisdictions anywhere in the world and can take as little as 10 to 15 business days; however, a reasonable time frame to anticipate is 3 to 4 weeks.
Kahnawà:ke Gaming License: The initial application and review process usually takes 4 to 8 weeks, and if everything is in order, a 6-month preliminary permit is granted.
Tobique Gaming License: Assuming all paperwork is in order, the application can be processed and completed within 4 to 6 weeks.
The gaming license required depends on a business's specific needs, with different jurisdictions offering various types of licenses based on the games being offered to players. Let's explore the pros and cons of some popular gaming licenses.
The Malta Gaming License is highly regarded in the industry, offering extensive benefits to operators. As a member of the European Union, Malta provides access to a vast European market, lending credibility and recognition to license holders. The robust regulatory framework ensures compliance with strict requirements, enhancing an operator's reputation and demonstrating adherence to industry best practices. Additionally, the comprehensive player protection measures safeguard both players and operators, further bolstering trust in the gaming ecosystem.
However, the Malta Gaming License comes with its share of challenges. The acquisition process is notably costly and rigorous, involving face-to-face meetings, thorough background checks, and audits. The approval process can be time-consuming, often stretching over several months. Moreover, maintaining the license requires ongoing compliance with strict regulations, including financial stability and anti-money laundering measures. The higher taxation and license fees associated with the Malta license may also pose a financial burden, especially for smaller operators or startups.
The Curaçao gambling license offers several advantages for operators in the iGaming industry. It is globally recognised and widely sought-after, providing a seal of approval that builds trust with players and partners. The license grants access to a broad range of global markets, operating under the principle "what is not explicitly prohibited is permitted." It also supports cryptocurrency transactions, allowing operators to tap into the growing market of crypto-savvy users. Furthermore, one license covers various gambling activities, eliminating the need for multiple approvals. The recent regulatory changes have introduced a simplified structure with two clear license types (B2B and B2C), streamlining the licensing process and aiming to enhance the jurisdiction's credibility.
However, the Curaçao gambling license also comes with some drawbacks. The new fee structure is generally more expensive, particularly for smaller operators who previously benefitted from sub-licenses. The updated system imposes stricter requirements, including mandatory local presence and higher financial stability standards. Some major markets, such as the USA, Germany, France, Australia, and the Netherlands, are excluded from the license's coverage. The ongoing regulatory changes may create uncertainty and require operators to adapt frequently. Despite improvements, some players and industry stakeholders may still view Curaçao licenses with scepticism due to its past reputation.
Pros of the Anjouan iGaming license include its affordability, making it an attractive option for startups with limited budgets. The application process is straightforward and efficient, allowing operators to obtain their license quickly and launch their operations without lengthy delays. This is particularly advantageous for operators aiming to swiftly enter the market and test their products or services. The license also offers broad international coverage, with only a limited number of excluded territories. It provides significant tax advantages, as Anjouan does not levy a tax on Gross Gaming Revenue (GGR). Additionally, the license is cryptocurrency-friendly and covers a wide range of gambling activities, including both B2C and B2B operations.
However, the main drawback of the Anjouan license lies in its lack of widespread recognition. Unlike licenses from more established jurisdictions such as Malta or Curaçao, the Anjouan license may not carry the same level of credibility in the global gaming market. This could potentially impact an operator's ability to attract and retain players, especially those who prioritise platforms with well-known regulatory oversight. It may also limit the operator's access to certain markets or partnerships, as some jurisdictions or business partners may not recognise or accept the Anjouan license. Other potential downsides include the annual renewal requirement, which might be seen as a disadvantage for some operators. Additionally, the rigorous KYC and due diligence evaluations for key persons in the company could be considered time-consuming or invasive by some applicants.
The Kahnawà:ke gambling license offers several advantages for operators in the iGaming industry. It provides a range of licensing options suitable for various online gambling activities, including casino games, poker, and sports betting. One of the most significant benefits is the absence of taxes on gross revenue, allowing operators to retain a higher percentage of their earnings for business growth. The license is also relatively quick to obtain, with the possibility of securing a preliminary permit in a few months. Additionally, the Kahnawà:ke Gaming Commission (KGC) is known for its strict compliance standards and emphasis on player protection, which enhances the credibility of licensed operators.
While the Kahnawà:ke license offers many benefits, there are some potential drawbacks to consider. The application process can be complex and bureaucratic, often requiring assistance from experienced companies to navigate successfully. The rigorous nature of the KGC's review and audit processes means that even minor mistakes in documentation can lead to costly setbacks in terms of time and money. Additionally, while the license fees are competitive compared to some other jurisdictions, they still represent a significant investment, especially with the recent 14% increase in October 2023.
The Tobique Gaming License offers online casino and betting platform operators several great benefits. It provides quick approval times, typically processing applications within a few weeks, and the resulting license is globally recognised and works in many jurisdictions, giving operators significant international reach. It's also cryptocurrency-friendly, supporting transactions in Bitcoin, Ethereum, and other popular ERC-20 tokens. Additionally, there are no local tax obligations, making it attractive for international operators.
Despite its benefits, the Tobique Gaming License has some limitations. It's not valid in several key markets, including the UK, USA, New Brunswick, Ontario, and FATF-blacklisted countries like North Korea and Iran. Operators need to be vigilant about jurisdictions requiring enhanced due diligence. While the license allows for multiple domains, there's a limit of five domains included initially, with additional fees for extra domains. Compliance requirements, such as maintaining AML procedures and segregating player funds, add to the operational responsibilities.
License set-up fees vary depending on the jurisdiction, with some fees applicable annually and others less frequently. The ongoing renewal fees may also be subject to change. Operators should also be aware of fees that are not charged directly by licensing bodies but instead arise through the licensing process, for example: company registration and due diligence fees, legal advice and services fees, and tax consultation costs. Where one license may have lower fees compared to another, the costs for pursuing that license may be substantially higher due to legal and tax structuring requirements. Therefore, the following fees should be considered as part of a potentially wider spectrum of costs and not as absolute and final figures.
Obtaining an MGA (Malta Gaming Authority) license involves various fees and taxes. The fee structure includes:
Malta offers competitive tax rates and corporate tax incentives, making it an attractive jurisdiction for iGaming operators. However, operators should be aware that additional tax requirements may apply for certain EU countries.
The new fee structure under the LOK (National Ordinance for Games of Chance) includes:
Consequently, the total estimated cost under the new system is approximately EUR 55,000 annually, which is lower than the current LBH system (approximately EUR 63,000). However, it's important to note that the new system eliminates the cheaper sub-license option, potentially making it more expensive for smaller operators who previously used this route. These figures are also estimated conversions from fees, which are set in Dutch guilder (ANG).
The Anjouan iGaming license is very cost-effective, with license fees coming in at approximately EUR 17,000 to EUR 20,000. This is significantly lower than those of more established jurisdictions like Curaçao or Malta. This competitive pricing, combined with the tax advantages, makes the Anjouan license an attractive option for operators looking to minimise costs while still obtaining a legitimate iGaming license.
There are additional fees, such as:
The costs associated with obtaining a Kahnawà:ke gambling license vary depending on the type of license. For example, the Client Provider Authorization (CPA) has an initial application fee of USD 40,000 (EUR 36,700), which includes the first year's licensing fee and one Key Person Permit. From the second year onwards, the annual fee is USD 20,000 (EUR 18,300), with a renewal cost of USD 5,000 (EUR 4,600) plus the Key Person License yearly renewal fee. Other license types, such as the Interactive Gaming License (IGL) and Live Dealer Studio Authorisation (LDSA), have different fee structures. Despite these costs, the Kahnawake license remains competitive due to its 0% corporate tax and no additional gaming tax.
The initial cost for a Tobique Gaming License is EUR 36,000 for the first year, which includes an EUR 18,000 professional fee for application assistance and EUR 18,000 for the license itself. After the first year, there's an annual renewal fee of EUR 18,000. Additionally, operators must pay an annual compliance fee of EUR 7,000. There's also a EUR 2,500 pre-application fee, which is deducted from the full amount upon approval. While these fees are significant, they are considered relatively budget-friendly compared to some other jurisdictions.
The iGaming industry offers a diverse range of licensing options to suit various operational needs and budgets, ideal for new entrants to the market and for operators looking to expand. From the globally recognised Malta Gaming Authority license to the crypto-friendly jurisdictions of Curaçao and Anjouan, operators have the flexibility to choose a license that aligns with their business model and target markets. Each jurisdiction presents its own unique advantages, whether it's Malta's strong reputation and blockchain-friendly approach, Curaçao's flexible stance on cryptocurrencies, Anjouan's cost-effectiveness, or the credibility offered by licenses from Kahnawà:ke and Tobique.
As operators explore licensing opportunities, factors such as application costs, ongoing fees, tax implications, and regulatory requirements must all be taken into consideration. While some jurisdictions may offer lower upfront costs, others provide benefits in terms of market access, operational flexibility, or a steadfast reputation of gold-standard compliance. The choice ultimately depends on the operator's specific needs, target audience, and long-term business strategy. As the iGaming landscape continues to evolve, particularly with the integration of cryptocurrencies and blockchain technology, these licensing options provide a solid foundation for operators to launch and grow their online gaming ventures in a regulated and compliant manner.
Please note that the information contained in this article pertaining to fees and application timelines is accurate to the best of our knowledge at the time of publishing. This information is subject to change. This information should not be treated as legal, tax, accounting, or any other advice.
