What Licenses Are Necessary to Run a Gambling Website?
The required licenses for starting an internet gambling business depend on several factors:
- Where do you want to establish and license your gambling business – Depending on the jurisdiction where you want to incorporate and license your business you may need one or several licenses. For example, in Malta or Curacao one gambling license covers all forms of online gaming – lottery, bingo, casino, chance, skill, fantasy etc. In other jurisdictions gaming authorities require that for each game you offer on your website you get a separate license. For example, in the UK you may need to get three different licenses for one site.
- Where will your players be from – In some jurisdictions you must get a license from the country where your players reside or from a limited number of other recognized jurisdictions. This may mean applying for a gambling license in several jurisdictions where your players are located. For example, only companies from select jurisdictions can operate gambling websites in the UK and in the US you need to apply for a license from the particular states where your customers reside.
Gaming Websites Are Responsible for Blocking Players from Countries where Online Gambling in Prohibited
Online gaming companies licensed in respected jurisdictions like the UK or Malta are required to take responsibility for restricting players from countries where online gaming is prohibited. As a licensed gaming company one of the requirements is to uphold the law and deny access to players from countries that do not allow online gambling. The licensing authority and the country where online gambling is prohibited can hold the gaming site liable and impose fines for not complying with this regulation. By not upholding this regulation the company, shareholders and directors are all breaking the law and liable to get their license revoked, especially in Europe and the USA.
Some Gaming Sites Uphold These Restrictions While Others Find a Way Around Them
Licensed gaming businesses can implement IT structures for preventing restricted players from accessing their website. This is done by blocking specific IPs and locations. Other gambling websites get around these regulations by setting up corporate entities in black listed countries like Curacao and targeting players from restricted countries via these Curacao-based companies. It is preferable to uphold the rules and regulations and obtain the necessary licenses in order to run a respected and legal online gambling company.