In order to run a business legitimately, it is necessary not only to have a certificate of incorporation, but also an official sanction of regulatory authorities in the form of a license. Gambling is the same business as any other, except that it is legal not in all countries. The gambling business license allows such sphere of action to exist and grow in those states where it is legalized. Operators can buy online casino license in offshore jurisdictions.
A demand for a license must be sent to those jurisdictions, which have a right to deal with gambling business licensing, along with other required documents. The gambling license for online casinos is issued by the reviewing committee, but for being able to obtain it you need perform many actions that we are going discuss hereinafter.
There are several advantageous options for licensing. Thus, you may contact companies-software manufacturers that often offer their services connected with the usage of their software. So, for example, in Casino Market you will be in for a surprise: an ability to buy turnkey online casino license. It is an ideal option for a successful launch of a business. It is essential for the company management to look with favor on all its partners and is loyal when concluding a contract.
Registration of the gambling business as a status of legality
The presence of special skills and experience are important, if you want to open a casino. Each business owner must primarily register it, and then to start the creation of the casino itself.
You must admit that you cooperate with your partners in the area of the development and purchase of a permit and casino on turnkey basis, but you still should know the critical path.
Key steps that should be taken to create a gambling establishment on the Internet:
- Market analysis in your region. You should know your competitors by sight: how many of them, what online casinos they own, what contingent of gamblers comes to their gambling establishments and who is the software manufacturer of these casinos. You also need to find out licenses of which jurisdictions did they obtain.
- Registration of a company or a sole proprietorship. In order to do it you have to file a request with competent authorities, and after receiving this status and the tax identification number to open a banking account (or accounts).
- Development of a website. You should create a professionally designed and maximally applicative website to work on the Internet and attract users.
- Purchase of a permit. It is obvious that without an official document the operation of your gambling establishment will be considered illegal, but you should give serious consideration to the choice of a jurisdiction, because each of them has its own rules and requirements.
- Purchase of the online casino software. It is important to choose a serious developer and buy high-quality software from him.
- Installation of games on the site. Experts claim that classical, well-known games are the most well-known. Although, there are also fans of novelty product. So it is necessary for you to carefully study your target audience and choose the most in-demand content among players in your region.
- Installation of popular payment systems on the website. Not all users have, for example, MasterCard, but most of them have integrated WebMoney.
- Launch of a casino and its promotion at the market. This is about SMM, SEO and advertising, which will be skillfully conducted by marketers.
As you can see, the list looks quite impressive. However, it is fully feasible, you can even do everything by yourself, without asking for help. Now let us consider this matter in a more comprehensive way and focus on the risk factor.
Online gaming license in offshores
The main losses are temporary, and each step will take up time that you could have spent on more important things, for example, on the promotion of your business. Only a gambling license will require a few months, because competent authorities that issue it lay down its demands — from data on founders of the firm to the description of each game.
A small clue: it is possible to buy online casino license in those states where gambling is not prohibited, and there will be no need for paying taxes for doing business. We mean offshore zones that willingly issue permits. In these states the price of a permit is several times less than in other parts of the world, and taxation is really loyal.
Also it is worth mentioning that these states are small, sometimes they occupy a territory that is a hundredfold smaller than one region in Russia. The population is also small, and the economy is not so rich. However, you can live in these states and do your things in a comfortable and peaceful environment, and to be easy-going about emotional stress that stems from how much money in the form of taxes you owe the state.
Reasons for doing receiving permits in offshores
Governments that are located in such regions are not so rich, and tax revenue connected with the gambling business licensing is highly desirable, plus they all take money for the renewal of a license. Moreover, casinos pay interest (quite small though), and many commissions press for payment even for the processing itself.
For owners of the gambling business it is also advantageous to work in such states, since they receive several bonuses at once for themselves:
- The firm automatically becomes international and acquires the right to operate in the European market.
- Enterprises are assigned a Tax I.D.of the EU.
- Businessmen can partner with major European companies.
- Being registered in an offshore jurisdiction, the brand acquires a high reputation, because of a respected committee that is a part of the EU.
- There is no need to pay high taxes.
According to professionals, the presence of a permit is essential, so it needs to be carefully chosen, carefully considered all pros and cons of each jurisdiction. And it is essential to take into account all aspects: cost of documents, period of consideration and issuance, time period for issuing, for what types of activity and so on.
Requirements for future licensees
Jurisdictions require from fellow applicants to provide information, and in particular, all data on persons related to the company — from their names to their fingerprints (quite rarely though). But each jurisdiction has also its own conditions, which it sets for potential licensees. So, it is worth collecting as much information on this topic as you can.
In any case, it will be important to dispatch the following documents:
- Correctly drawn up demand for a gaming license.
- Copies of materials on the firm: certificates of incorporation, charter, top managers and founders.
- Document confirming the existence of an office (e.g., payment receipts).
- Business plan of the gambling establishment with a description of all gambling products: roulette, slots, payment systems, software, rules of games and chances of winning. Settlements of costs and preliminary return should be calculated separately.
- Certificate from the bank confirming the presence of the firm’s own account, as well as the company’s solvency and possibility of opening a gambling business.
- Confirmation of the proper function of the security service.
Online casino license: a list of the best jurisdictions
This island is small and is under the law of the United Kingdom, but its reviewing committee that does gambling business licensing, requires the frim to be stable and financially sound. In addition, it must grant access for the examination of software and payment systems, as well as draw up a business plan for the casino.
One of the founders is required to be a resident of the island of Alderney, the committee also should receive complete information on the company, its employees, bank accounts and the presence of a professional lawyer on the staff. It is worth noting that the committee issues not only one gambling license, but also permits for other types of gambling activities. The license costs about £70,000.
The Estonian reviewing committee has power to issue licenses not only to the firm or sole proprietor, but also to a private individual. Although, it has several additional requirements. Businessmen can live in any country, but they will have the same rights as a resident. There are two categories of licenses: for creation of a casino (32 thousand euro) and for gambling (48 thousands). Taxes are calculated from the received income: from casinos — 5%, from lotteries — 18% of revenues for tickets, for slot machines it can be calculated in many ways — the percentage depends on manufacturers and the number of such machines.
Over 50 brands were registered in this tiny Indian reservation, and they were issued four kinds of licenses: hosting, legal entity, gambling with a license from another commission and business management of a casino. The cost of a gaming license can vary from $ 5,000 to $ 25,000. Other payments should be made as well: for the audit of software (15,000), and for the renewal of a permit — $ 10,000 annually.
Austrian jurisdiction issues licenses for each type of games separately and accepts applications only from those companies that were founded in Austria. It requires an unblemished reputation, the availability of funds on accounts and unconditional compliance with laws. Much attention is given to the transparency of payments to players.
The Costa Rican committee issues not a gambling license, but a permit for entrepreneurship (provision of services, acceptance of sports bets, and provision of online poker rooms). This permit is called Data Processing License and is issued to business owners registered in Costa Rica. The cost of a document is 24 thousand US dollars. Casinos are obliged to pay a single tax of 68 colons.
Gibraltar has adopted a special Act, which serves as a gambling law. It regulates gambling throughout the state. An application processing here is free, and the online casino license itself costs from 30 to 70 thousand US dollars and is valid for five years. The renewal will cost 2,800 dollars per year.
Island has got a special state authority, which issues licenses of four kinds: Internet casinos, sports betting, poker tournaments and permits for the gambling services delivery. To file an application will cost 2 330 euro. The cost of permits starts from € 4,600 (for 6 months), and the renewal of a license costs € 7,000 annually.
Taxes are calculated from the turnover, and betting companies pay the minimum duty (0.5% of the income). Other activities are subject to a profit tax of 5%. It is curious that the minimum amount of tax is £85,000, and the maximum — £425,000.
The Isle of Man
This is another British territory where there is an offshore jurisdiction. It is possible to purchase licenses for all gambling activities through one document, i.e. there is no need for receiving it separately for each spheres of activity. Firms should be founded on the island, and at least one director should be a resident of the state. The minimum amount of tax is 0.1% of the income (companies with 40 million pounds sterling a year), those who earn between 20 and 40 million should pay a bit more (0.5%), and the maximum amount of tax is 1.5% It is paid by those who have less than 20 million per year. Te tax for betting companies and betting houses is 15% of income.
The Belgian committee issues seven categories of licenses, which include:
- Permits for land-based gambling establishments.
- Gambling halls with slots.
- Slot machines in bars and other drinking establishments.
- Work of employees.
- Activity of software manufacturers.
- Betting business and betting houses.
- Gambling on TV and mobile phones.
Among the requirements we can mention: payment of 11% of income and the presence of € 250,000 on the banking account.
A permit in the Dominican Republic is issued only to prosperous businessmen who own a five-star hotel or rent it. So the main requirement here is high financial solvency.
In Italy the permit is issued by the AAMS Commission, and all casinos in the state report to it. Internet gambling establishments, sports betting, online lottery and horse racing are being licensed. For the creation of a casino, you will need to pay € 350,000. A single tax for gambling companies is 20% of the profit; betting companies pay turnover tax of 3.5%; slot machines — 3%; racecourses pay turnover tax in the amount of 10%; bingo organizers are obliged to pay11.5%.
An online casino license here is issued by a state authority — the Ministry of Justice. Operators can transfer the document to another person — a close confidant, along with other documents and rights for online casinos. A single permit is issued for all kinds of the gambling business. Furthermore, casino owners do not need to register an office. It is essential to pay corporate tax in the amount of 2% of profit, and no more taxes are required, so that conditions for conducting the described activity in the country are almost ideal.
A distinctive feature of the country's legislation is a ban on advertising of gambling nationwide. An Internet lottery business is allowed, but online gambling in the country's territory is impossible. There are separate rules for sports betting and non-sports betting. The Australian legislation is rather unusual, and everyone who is interested can find all additional data on the Internet.
The company-provider Casino Market has specialists who can assist you in all matters related to such type of business. This firm provides an opportunity to buy turnkey online casino license, and to purchase permits of the described jurisdictions.