Earn your Players’ Trust by Being a Gambling License Holder
Players know that websites authorized to operate under an official gambling license are regulated and most likely legitimate. Having a gaming license promotes trust in potential players and results in returning customers.
Internet Casinos Must Abide by the Law Just as much as Land-Based Gambling Businesses
Land-based gambling has been banned in many countries over the last decade leading many casino businesses to move their activities online. This cuts out a major chunk of a land-based casino’s overhead; requires reorganization; new marketing strategies and adjustment to new laws and regulations. The laws for online casinos versus land-based casinos may be different but it does not mean online gaming businesses can avoid being licensed and regulated. A license may mean having to abide by the law but it also gains you protection from problems with the law. Getting a gambling license for your online gaming business is one of the first steps that needs to be done when starting a new internet venture.
Gambling License Jurisdictions
Licensing jurisdictions or online gambling jurisdictions are regions where there is specific legislation in place to license and regulate online gaming companies and industry service providers. In licensing jurisdictions, there is usually a government-appointed organization, Gaming Control Board (GCB) or similar authority in charge of internet gaming licensing and regulation. Without an officially issued gaming license online gambling sites cannot operate legally.
Learn more: Compare the top online gaming jurisdictions
How to Get an Online Gambling License
Gambling licenses are issued by Gaming Control Boards (licensing authority organizations) that follow the licensing procedures laid out in the country’s legislation. These processes are in place in order to counter criminal activity and maintain high standards. The requirements for a gambling license vary in different jurisdictions but there are a few basic requirements.
- Full disclosure of your online gambling company’s financial records and business structure – owners, partners, shareholders etc.
- Details of your employees including criminal records and personal details.
- Due diligence on the company’s beneficial owners, directors and executives.
- Some jurisdictions ask to see an operational and marketing business plan.
- Proof of good standing.
These are only some of the conditions you will have to meet as an applicant for an online gambling license. The documents and information you will have to volunteer is comparable to those needed for opening a business bank account. These tough conditions and detailed analysis of your company are necessary to rule out any involvement in money laundering or other criminal activity.
The licensing authorities also want to weed out businesses that are unlikely to succeed due to lack of experience, financial instability or no expertise. The application process can be arduous and time consuming. For this reason, it is now possible in some jurisdictions to apply for a license in multiple jurisdictions at one time.
Living by the Licensing Authority’s Rules and Regulations
The gaming authorities (Gambling Control Board, gaming commission or casino control board) usually create the rules and regulations dictating how gaming activities are conducted and treated within the jurisdiction. Laws also outline the regulations and licensing requirements for online gaming businesses, employees, owners, service providers and vendors. The online casino licensing requirements include details of marketing restrictions, gaming rules, bonus policies, auditing, accounting and other requirements.
The Gaming License Application Process
The licensing authority has all control over issuing licenses and regulating all aspects of online gaming businesses. Licensing authorities will request personal information from company owners in order to ascertain whether they are in good standing. During the application process business owners may be asked to provide details about their employment history, financial records, previous business collaborations and their criminal record. The application process for an online gambling license is complex and intended to root out criminal elements or unethical business people.
Regulation of Online Gambling Businesses
Online gambling businesses are regulated either by the Gaming Control Board or a separate body or division. Gaming Control Boards hold the power to adjudicate over civil cases brought to them by the body responsible for enforcing the gambling license regulations. These powerful government-appointed organizations are authorized to make and enforce online gambling regulations as well as granting or denying the right to a license.