Here are the challenges operators may face trying to acquire a gambling license

Instant withdrawal casinos are many, and many offer you a pristine process on how your transactions are made online. What games you play, and how long your winning funds will take to reach you. What you do not realise, as you join a new online casino, is the amount of work that it takes for the casino to start their operation. For starters and a good starting point for all instant withdrawal casinos, is acquiring a gambling license.

Casino owners will potentially describe the process as a lengthy one, with loads of paperwork and documentation involved. This is never good news for new start-ups that have a never-ending task list to get through to before launching their new baby (the casino).

So what does it entail to get the gambling license?

Without a gambling license is like trying to bake a cake without having any flour. The foundation of everything is the license. This gives you the go ahead to launch your product, market it and eventually the ability to host gambling games at your site for players to enjoy.

Nowadays, you will still find some casinos that operate illegally without a gambling license. The main goal behind this is to avoid all the payments and fees that come along with your gambling activities. This is quite a risky business, and if caught, you will most probably end up in jail for tax evasion. These casinos that operate illegally without a license are sometimes regarded as black market casinos, as some specific game providers will refuse to sign deals with such casinos.

Now that we established that you need a gambling license, let’s have a look at some of the challenges that you might face in the process…

The joys of paperwork

With a neverending list of tasks to do as a casino owner, we are sure that paperwork is the less of your worries. A good amount of casinos fail to get the paperwork needed to finalise the gambling license, but trust us when we say that you should work hard to get the documentation, especially if you want to launch your instant withdrawal casino in no time.

Nowadays, it is easier to employ a gambling lawyer or a firm that specialises in project management of such tasks. Compliance when it comes to licensing should not have even one flaw, so let’s leave it to the professionals to deal with. You need that peace of mind after all.

Different countries, different requirements

When applying for a gambling license, you need to choose the region that will grant you your gambling license. Some opt for Malta, others the UK, Curacao and even Sweden. What is important to note is that every country and jurisdiction that offers a gambling license will require you to pay different fees and provide different documentation. So you cannot use your docs for the MGA license to get the UKGC license.

Always make sure that you operate in the country that you tend to want to do business at, and always ensure that you have all the fees ready to pay. This is not a one-time payment that we are talking about, and for the different products that you will be offering, you would need to pay some money to promote that. Eg – Casino, Sportsbook and Bingo are all regarded as standalone products.

If your peers advise you that a specific license is currently a bit problematic to acquire, consider other options. It is not worth waiting a year to get a gambling license after all!

What setbacks could new instant withdrawal casinos face?

It takes a lot of work, and unfortunately would most probably meet some setbacks along the way. When it comes to new casinos meeting specific requirements is quite a hard task and potentially could halt your new playground from launching. If you are a new operator and looking to apply for a gambling license, you need to consider having the below ready for your license application

-        Information about the company and the people involved A structure chart would be ideal along with all the information and requirements available for all the people who will be involved in the casino, even the staff members. If you have a criminal past, you do not stand a chance, and rightly so, who wants criminals dealing with casinos.

-        Financial Information Source of wealth and KYC, is not just for the players that are signing up to the casino. All the staff, company, directors and even the owners would need to provide specific documentation with regards to their financial matters, and they would need to be approved by your licensing body to sign off and stay affiliated with the casino.

-        Casino / Brand Integrity As a new casino, you are expected to show integrity towards your players and always do the right thing. If a player deposits 10k Euros, as a casino you should show enough integrity to follow the KYC and Fraud procedures, and not just rejoice and the fact that you are 10k richer. This is the integrity that licensing bodies are looking for.

Whilst the above seem like a n interrogation or a way to open a financial institution, some countries have stricter laws and regulations than others. Another setback is the fact that when you apply for a specific license at a specific jurisdiction, you would not have the facility to apply for a multi license, and this will potentially pose a major risk of losing players. Again, we always suggest that you do your homework right from the very start.

The dreaded costs of gambling licenses

We did mention that acquiring a gambling license is quite a costly process, but if you think this just involves one set up fee, thing again. Running costs are always a big headache for new casino sites owners, and some tend to choose this license over the next due to costs.

When you start off your license application process, fees include the lawyer fees, any apostilles, the due diligence fees on all the members listed as the casino owners / directors and even staff members at times. Apart from there, there are the technology side of things, which some licenses require that you have an office or at least an address in the said country of the license.

If you have set up home in the United Kingdom, the license cost is relatively low, however you would need to pay 15% of the profits you make as tax. If you would like to set up your casino in Italy, the cost of the license is €300,000 for 10 years, which unfortunately would need to be settled in advance for the whole 10 years. Apart from this, you would still need to pay an annual €70,000 in royalties and an additional 20% of your profits for the year in tax. Reporting costs, and other certificates will also set you back a couple of thousands.

On the other hand, acquiring a license in Malta is not so hard, and the process seems to be more user friendly for new casino owners. Just ensure that you plan ahead and have all the documentation ready to avoid any delays in the process.