If you want to start an online gaming operation, you know that getting a license is quite important. But it's worth understanding the reasons why licenses are so essential to a betting site.
In general, the role of licensing authorities is to ensure that all games are honest and safe for consumers. That is, having a licensed betting site is a guarantee to your client that the operation works with strict standards of transparency and credibility. And that's critical for your audience to understand that they're depositing money on a trusted platform.
Today's players are very informed and understand that betting on a licensed website means being safe. After all, no one wishes to hand over their financial resources to an unsuitable operation.
Customers expect to be able to deposit and withdraw money through various payment providers and, of course, have at their disposal a large catalog of games from the best providers in the world. And you won't be able to offer all of this if it's not a licensed site.
How to get a gaming license?
Obtaining a license is a rigorous process. There are many checks, demands and requirements.
Obeying important policies like Responsible Gaming and Anti-Money Laundering (AML) controls are some of the many requirements required. To comply with requirements and avoid wasting time and money, many operators hire specialized consulting services in this area.
Currently, there are several licensing jurisdictions. The most recognized and popular in the market are Malta, Curaçao and the United Kingdom.
Each license has a different reputation. Some are seen as more lenient, others are recognized as stricter with regard to rules and limitations. Let's talk about some of them:
Malta Gaming Authority
This license is considered quite reliable. The Malta Gaming Authority (MGA) is the body that carries out the process of granting the licence to an operator.
MGA offers four license classes. The first type gives the right to organize gambling where the result is determined by an RNG. This is the ideal license for sites that offer slots and table games.
The other licenses offer the ability to organize games based on event results, poker and fantasy games.
UK Gaming Commission
The UKGC is the regulatory body and offers a number of different licences based on the company's activity. For example, if you offer sports betting on real events and virtual events, this implies ownership of two different licenses.
This is one of the disadvantages of the UK Gaming Commission licence, as operators wishing to operate in other branches of iGaming need to apply for a separate licence for each of them.
The UKGC has some of the longer approval processes, which can last up to 16 weeks.
Curaçao
The Curaçao license is very popular in the iGaming industry. This is largely due to the ease and low costs to obtain it. This regulator offers so-called master licenses and sublicenses. Licenses are renewed every five years.
The main advantage of it is that websites need only one license for the entire iGaming vertical.
Curaçao's license has a very advantageous cost and the average time of obtaining is only 6 weeks. However, there are some disadvantages. Casinos licensed in Curaçao cannot accept players from the USA, France, The Netherlands and Curaçao itself.
Overall, however, due to its simplicity and speed, Curaçao is an excellent choice for novice operators. Obviously, it is always possible to later search for another license if necessary.
This is a very interesting topic and worth many good discussions. If you liked the subject, please contact me.
André Vinícius de Alencar Alves
Commercial Director and Partner of Control+F5
