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If you want to start a new online gambling service or are interested in adding the ability for customers to transact in cryptocurrency to an existing online casino, talk to our team of experts here at GBO.
We have over fifteen years of experience in every aspect of corporate services, and have been keeping our skills in step with the growth of crypto.
Skype us: GBO International Financial Services, WhatsApp us: +972504938469, email us: [email protected]
As the popularity and acceptance of cryptocurrency transactions are growing worldwide, it is essential for any online gambling website to be able to offer its visitors the opportunity to make their deposits and withdrawals in a crypto currency instead of only fiat currencies like US dollars and euros.
This article covers the fundamental issues you need to consider when introducing cryptocurrency facilities into an online gambling operation.
Why does adding cryptocurrency make business sense?
Cryptocurrencies offer some unique benefits that make them particularly attractive for online gambling. Because they were built from the ground up as digital currencies, they are especially suited to online transactions. Add to that the complete security that encryption brings along with secrecy, and you have a medium that is perfect for online gaming.
The main advantage for players who want to work with cryptocurrencies is that they ensure total anonymity in moving funds into and out of the casino. Winnings cannot be taxed in the same way as they can for fiat currencies that are visible via traceable banking transactions.
Operating an online casino that allows for transactions in cryptocurrencies increases your attraction worldwide, with a reach that extends beyond just locales that already fully permit gambling into countries and states where it is banned or regulated. This is where cryptocurrencies come into their own, because authorities have no way of tracking movement or discovering ownership of cryptocurrencies.
Crypto casino license fees
Several jurisdictions permit cryptocurrency casinos to operate without a license. You need to remember that players are very wary of unlicensed operators, just as is the case for standard online casinos. The risk is much greater because there is little or no supervision in unlicensed jurisdictions. Casino operators can disappear overnight along with customers’ deposits in cryptocurrencies, which are entirely untraceable and unrecoverable.
So far, the best jurisdictions that offer conventional casino licenses, pure crypto licenses and combination fiat/crypto licenses are Curaçao and Malta. In the rest of this article, we will be focusing on those countries, with additional notes on when there are other countries or states that have begun to open up to this market.
Curaçao
Curaçao has an excellent general reputation because of the quality of the legislation that allows online gaming as well as control of the operations. Gamblers have confidence that their betting activities will be secure, private and fair. Casinos offer the most popular table gambling activities like roulette, poker, blackjack, baccarat, craps, sports betting and electronic slots.
The Curaçao gaming license is available only to companies that are based in Curaçao. The costs for a crypto gaming sub-license work out at around €30,000 as a one-off upfront payment to a Master License holder, with a monthly fee of €5,000 for the first two years. After that, the fees can be renegotiated with the Master License holder.
Important for casino operators, Curaçao levies no tax on gross gaming revenue – unlike other major countries where taxes on gaming revenue can go as high as 35%.
When you set up the corporate structure with our help, we will get you established so that you pay the minimum tax rate on net corporate profit, which is just 2%.
Malta
Malta Gaming Authority issues licenses that permit both fiat and crypto gaming. The basic license costs around €17,500 up-front, plus a sliding rate based on revenue which can top out at €750,000. On top of this expense, Malta gaming corporations have to pay a standard corporate tax of 35% on profits.
Why should you get the license from us?
Bitcoin Online Casino Licensing requirements
Bitcoin is the most widely traded and recognized cryptocurrency. It sets the benchmark for the rest of the cryptocurrency world. There are no specific requirements regarding using Bitcoin both as a medium for transfers into and out of casino accounts or as a wager. It is neither illegal nor prohibited in online casino transactions and plays. Most countries do not yet regard Bitcoin as a real currency.
Bitcoin casino turnkey solution
The options for computer systems needed to set up an online Bitcoin casino are:
Bitcoin Online Casino Licensing
Because Bitcoin is the most popular and recognized medium of trade in the crypto world, it can make good business sense for new crypto gambling investors to start with a single offering of gambling on a licensed Bitcoin casino.
Most countries do not yet regard Bitcoin as a currency, so licensing a casino that can handle Bitcoin can be done the same way as a regular casino. GBO has been offering complete turnkey packages for customers looking to set up casinos in the key locations of Curacao and Malta for nearly 15 years. You should let us take the necessary steps, and you can be up and running in just a few weeks.
What does a crypto gambling license cost?
Setting up an online crypto casino involves many steps. The crypto gaming license cost is just one of the many associated costs. It would help if you let GBO be your guide because we have the necessary skills and experience to ensure that you have the best possible solution.
One of the main variables in the crypto casino license fee structure is the country in which you base the casino. The first choice you should make is to select a jurisdiction that issues recognized and acknowledged licenses. Gamblers are very wary of countries that allow unregulated gaming, because there is a long history of illegal and criminal organizations that disappear overnight, taking all of the players’ funds with them. This is primarily a risk for crypto casinos, because cryptocurrencies are totally untraceable.
Crypto gaming license costs will include the formation of a corporation inside the licensing country, and the establishment of the required infrastructure, including a gambling software platform, payment services, banking and all the required personnel. Crypto casino license requirements dictate the presence of local directors, the identification of Ultimate Beneficial Owners, and due compliance with Know Your Customer (KYC), Anti-money Laundering (AML) and Countering the Financing of Terrorism (CFT) laws.
Can cryptocurrency be used for gambling?
There are no specific conditions regarding the use of cryptocurrencies both for transfers into and out of casino accounts and for betting. The casino can allow customers to work entirely in cryptocurrencies or set up some exchange if they have not upgraded the games to permit wagers in crypto denominations.
Is Bitcoin casino legal?
In many countries, an online casino must obtain a gambling license. Without this, it cannot process payments via banks. Most customers will avoid using the site because of experience with illegal gaming companies that were either fraud or failed, with the gamers’ money disappearing. However, there are no specific laws relating to whether Bitcoin or other cryptocurrencies can be used to move funds or gambling.
How do you set up a crypto casino?
The steps to start a crypto casino can be summarized as follows:
Do you need a license for a crypto casino?
There are no laws relating to whether Bitcoin or other cryptocurrencies can be used for transfers or gambling. To be legitimate, an online casino must obtain a gambling license from a recognized authority, otherwise it will not be able to open bank accounts to process payments. Gamblers are also very wary of unlicensed casinos because these have a history of disappearing with their customers’ money.
Is crypto gambling regulated?
The authorities who oversee licensed online gambling operations inside their jurisdictions do not distinguish between fiat currency and cryptocurrency transactions. The same regulations apply regardless of which medium of transaction the casino allows.
