Where and at what price to obtain gambling license
Purchase of gambling license is one of the most significant steps towards the establishment of gambling business. Such a document allows to deal with online gambling on legal grounds.
Each state has its own rules of providing businesses with the official gambling permission. Desiring to launch virtual gambling clubs, entrepreneurs try to choose a jurisdiction having the most profitable package of offers. Let’s figure out what countries issue gambling licenses and on what terms.
What agencies are in charge of gambling licenses?
The authorities of more than 80 countries have the right to legalize virtual gambling venues. It is various departments, ministers, committees, and other bodies that are responsible for issuing approval documents.
Lotteries and Gaming Authority provides licenses in Malta, the Licensing Authority in Gibraltar, Cyberluck Curacao N.V in Curacao, the Tax and Customs Board in Estonia, and local municipalities in Costa Rica.
Cost of online casino license
The sum of money that entrepreneurs should pay for the license depends on a jurisdiction and a type of their activity.
- Gibraltar. The license costs from $30,000 to $70,000.
- Curacao. Payment for the main gambling license is $35,000. Online casinos should pay $5000 per month within the first two years of operation.
- Costa Rica. The license price ranges from $12,000 to $17,000; its maintenance – $1500 per each quarter.
- Malta. License fee is €25,000; request for application processing is €2,300; license renewal is €1,500.
- Estonia. A company should pay €48,000 for the analysis of gambling license and €32,000 for the online casino license. Government gambling tax is €3,000.
Types of online casino licenses
A range of states grants licenses for all kinds of gambling activities at once. Some countries require a permit for each gambling category.
There two types of licenses:
- International. Such documents allow to carry out gambling activity in various countries.
- Local. They allow to work only in the territory of one country.
Gambling license in Gibraltar
Gibraltar is an offshore jurisdiction. This country requires a certain license for each kind of gambling.
- low tax: 1% of profit, no VAT;
- stability of country’s economic and political sectors;
- confidentiality assurance;
- entry into the European market.
Gambling license in Curacao
Curacao is an offshore area as well. The special feature of this territory is that it does not divide gambling business into various categories. Companies receive a single-type license. It permits all kinds of gambling activity.
The island has two types of permitting documents:
- Masterlicense: Curacao’s main license.
Advantages of Curacao’s gambling business:
- one should not prepare a special gambling license;
- low tax: 2% of profit, no VAT;
- low requirements for software;
- possibility to run business remotely.
Gambling license in Costa Rica
Costa Rica does not regulate gambling activity, thus it does not issue a special gambling license. To organize gambling within the republic, entrepreneurs use a data processing license.
Advantages of gambling business in Costa Rica:
- no income taxes;
- fast acquisition of license;
- online casino services can be located in various countries;
- no requirements for software and financial reports.
Gambling license in Malta
Malta is an island state in the Mediterranean, one of the most flexible and beneficial jurisdictions for gambling. The Malta Gaming Authority issues four classes of gambling licenses:
- Class 1. For companies applying a random number generator.
- Class 2. For businesses accepting online bets on certain events.
- Class 3. For companies organizing betting pools, betting exchanges, and poker rooms.
- Class 4. For gambling software providers and hosting companies.
Advantages of Maltese licenses:
- entry into European markets;
- receiving the status of the EU international company;
- tax benefits;
- possibility to get a resident permit in Malta.
Gambling license in Estonia
Entrepreneurs in Estonia need two documents allowing gambling operations:
- Activity License. It is valid for an unspecified period of time and is non-transferable. The document gives the right for gambling activity.
- Operating Permit. The document is valid for 20 years.
Advantages of Estonian gambling licenses:
- taxes: 5% of profit;
- possibility to obtain a permit for organizing land-based casinos on Estonia’s ships and vessels sailing under the country’s flag;
- adding an enterprise to the EU Register;
- entry into the European market.
Gambling business licensing is a foundation of company’s authorized activity. To succeed in the gambling sector, one should bindingly select a country for receiving a license. Weigh up the pros and cons, and do not hesitate to contact corresponding structures in order to get necessary documents.