How to get a gambling licence in 2024

It is a big deal in the gambling world, as it is one of the things standing between operators and players. If you want to start a legal gambling company in 2024, use this guide to discover the advantages, types, and steps involved.

Who needs a gambling licence?

Every business requires a type of permit. In this case, anyone who wants to offer gambling services. Of course, the extent of the requirement depends on the jurisdiction you’re located in. The following establishments require a gambling license:

• online and offline casinos
• physical betting shops and online sportsbooks
• national, charity, and private lotteries
• physical bingo halls and online websites
• horse and dog racing tracks
• social gaming centers.

Advantages of having a gaming license

A gaming license has various advantages for casino operators, players, and the industry. The most prominent ones are:

Trust

A license is issued by a regulatory authority and it allows physical and online gambling companies to conduct legal businesses. In other words, it protects them from penalties. As a result, it is always one of the factors to consider when looking for legit online casinos to play. The permit indicates that they comply with regulatory requirements concerning fair play, player and fund protection, and more. Hence, it boosts credibility, as players are more likely to trust licensed operators. Apart from market access, banks and payment systems receive them with open hands. The reason is that most financial institutions require a physical or online gambling license before providing payments for gambling. Likewise, the operator can form meaningful partnerships with companies. 

Player Protection

A licensed online gambling business follows strict regulations that protect against fraud. Players have a way to resolve disputes, which adds an extra layer of protection. Speaking of protection, part of the licensing requirement is the use of random number generators and regular audits by a certified body. This entire process gives the players assurance.

Maintains a High Standard

A permit allows the industry to keep all operators under a tight rein and maintain high standards. Unlicensed business owners become easier to detect, leading to greater market stability. Meanwhile, the revenue from licensing fees and taxes comes in handy for market expansion.

Gaming License Requirements

The requirements for a gaming license vary based on the type of gambling activity and the jurisdiction you’re located in. However, they often include some or all of the following:

• Background checks of all key personnel, including their financial stability, criminal history, and reputation.
• A business plan that outlines their marketing strategy, target, projections, and operational structure.
• Bank statements and evidence of sufficient capital to float the enterprise.
• Responsible gambling policies and evidence of risk management.
• The ability to implement secure payment processing systems, random number generators, and anti-fraud measures.
• Customer service measures, data protection, and dispute resolution policies.
• Licensing and ongoing fees.

Types of Online Gaming Licenses

There are diff types of online gaming permits. They include:

• Business-to-Business (B2B) license: A B2B permit allows a software developer to present games to gambling providers.
• Business-to-Consumer (B2C) license: This license allows a company to provide gambling services directly to players.
• Software license: Companies may only develop and distribute gambling software to licensed operators when they have a software license.
• Betting and gambling licenses: Operators who want to offer online and offline betting and gambling services require this permit. They include casinos, bookmakers, poker, bingo, lottery, skill games, and fantasy sports.

Gaming Jurisdictions

There are hundreds of gaming jurisdictions worldwide, but some are more prominent than others. Let us compare the types of permits they offer below:

How to Get a Gaming License: Step by Step

Follow this procedure to obtain a permit:

• Identify your jurisdiction or choose one that meets your operational goals.
• Create a business plan that outlines your business model and procedures. Then, gather crucial corporate and personal documents like certification of incorporation, identification, and shareholder agreement forms.
• Audit your account and provide proof of funding. If it is possible, get a bank reference to show you can cover the setup and operation costs.
• Invite an independent testing agent like eCOGRA to certify your gaming software. Likewise, adopt a security measure to protect player data and funds.
• Fill out the application form and attach all required documents.
• Pay the application fee.
• The jurisdiction will review your application and subject it to various reviews. If approved, you will receive a license.

To Sum Up

A lot goes into obtaining a gaming license. From preparing detailed documentation to providing technical and regulatory compliance. If you follow the steps above, you won’t run into problems. Bear in mind that permits can be revoked if you fail to obey the law. Hence, we recommend you familiarize yourself with the regulations guiding your preferred jurisdiction before applying for a permit.