How to Secure a Gaming License? Regulations Guide in Various Countries

This blog is your detailed guide to obtaining an online gaming license. Stride along to read the step-by-step process and get the license without any hassle. 

A lot of iGaming startups get opened every year and the majority of them shut down.

Shocking! Isn’t it?

Well, because the majority of businesses operate without a license.

Before you plan to start an online casino business, don’t forget to procure an iGaming license.

Not only will it help you run the business legally, but also open doors of opportunities to international markets.

In this blog, you will learn the process to secure an international online gaming license, gaming compliance requirements, and a lot more.

But first, have a look at the table below: 

Country	Jurisdiction	No. Of Casinos Shut Down
Turkey	National Lottery Administration	233,000 illegal gambling websites
United Kingdom	The UK Gambling Commission	264 illegal gambling websites
Philippines	Philippines Government	200 illegally operated sites
Australia	Australian Communications and Media Authority	1000 illegal gambling websites

What Is an iGaming License?

An iGaming License is a permit that allows a casino operator to lawfully and ethically operate and offer gambling services.

Possessing a license for any operating casino indicates the operator adheres to orders and standards mentioned by the license provider.

Furthermore, this sets a tone on how the operator should conduct the Gambling Business.

The failure to attain the basic level of standards can result in losing the online gaming license or getting punished by law.

Key Steps to Secure an iGaming License

Getting an online gaming license is neither easy nor a herculean task if you follow the steps mentioned below:

1. Determine the Type of Gaming Activities

First and foremost, determine the type of game you want to offer. Whether it’s online casinos, sportsbooks, poker, or all of them.

It’s simply because the type of game you want to offer will determine which license you need and where you can legally launch.

Ideally, different types of iGaming licenses exist for operators, including:

• Casino licenses
• Sports betting
• Bingo
• Poker
• Lottery
• Licenses for all skill games (card games, poker, rummy, fantasy sports, sports)

Determining the specific type of online gaming license required for your iGaming business is important before starting the application process.

2. Choose a Jurisdiction

There are a total of 195 countries in the world out of which 79 are regulated. You must choose a jurisdiction that fits in your business requirements like budget, goals, and compliance capacity.

There are major regulatory bodies in the online gaming authority as below:

• UK Gambling Authority (UKGC)
• Curacao eGaming
• Malta Gaming Authority (MGA)
• Gibraltar Gambling Commissioner
• National Gambling Board (South Africa)

However, iGaming markets in some countries are regulated by state or province level jurisdiction.

For instance, in South Africa, nine provincial authorities provide iGaming license such as:

1. Gauteng Gambling Board (GGB)
2. Western Cape Gambling and Racing Board (WCGRB)
3. KwaZulu-Natal Gaming and Betting Board (KZNGBB)
4. Eastern Cape Gambling Board (ECGB)
5. Limpopo Gambling Board (LGB)
6. Mpumalanga Economic Regulator (MER)
7. Northwest Gambling Board (NWGB)
8. Northern Cape Gambling Board (NCGB)
9. Free State Gambling, Liquor & Tourism Authority (FSGLTA)

3. Prepare Legal and Business Documents

Next step to getting your papers in order and ready. This includes business plans, AML policies, software details, financial statements and company registration documents.

Keeping documents authentic, accurate, and transparent will build credibility with regulators and speed up the approval process.

4. Background Checks

Before submitting the application, you will have to go through one of the critical and time–consuming parts – background check.

Most regulators will review your company’s structure, funding sources, and the personal histories of directors and stakeholders to ensure no criminal or fraudulent past.

Make sure your past is crystal clear. Because failing the background check is among the top reasons applications are rejected.

That’s why it’s crucial to be fully transparent and well-prepared when entering this phase.

5. Submit Application

Once the background is properly checked, submit the application to the licensing body. The required documentation should include:

• Application form
• Business plan
• Compliance policies
• Financial statement

Based on the circumstances, you might have to wait for weeks or months for approval.

6. Pay Fees

Online gaming license comes with multiple fees structure such as annual licensing fees, application fees, and other administrative costs.

However, the fee can vary depending upon the kind of jurisdiction you’re targeting.

Regulatory Requirements by Country/Jurisdiction

Want to get the iGaming license as soon as possible? Make sure to prepare these requirements in advance to avoid any issue in the middle of the process.

Let’s understand the regulatory requirements in some of the most popular iGaming jurisdictions in the world.

United States

To operate an iGaming business in the USA, operators have to understand the gambling rules and regulations in the country. These rules are unique as per their requirements and coverage.

United Kingdom

The UK Gambling Commission imposes strict Anti-money Laundering (AML) protocols, player protection rules, and responsible gambling tools.

Apart from this, having a robust compliance team and financial transparency is a must.

Malta

In Malta, operators have to pass through due diligence checks and implement AML, KYC, and players’ data protection measures. Malta is an ideal jurisdiction for operators targeting EU iGaming markets.

Isle of Man

One of the highly respected jurisdictions for its regulatory framework, Isle of Man offers tax benefits to its operators and robust infrastructure.

Additionally, operators should have a detailed business plan, financial audits, and local presence.

Curacao

Curacao is known for being among the affordable and fastest approving jurisdictions. This country is best for startups and crypto-focused operators.

Common Challenges in the Licensing Process

Applying for an online gaming license isn’t an easy process, it comes with a lot of challenges.

Though facing challenges or issues are common hurdles, it’s important to know what these challenges are.

Let’s find out below: 

Complex Documentation

Every country’s jurisdiction requires a set of documentation containing financial reports, a detailed business plan, AML policies, etc. The incomplete documentation delays the process of license.

Due Diligence

Many times, background checks are strict on directors and operators. For instance, any criminal record, past bankruptcies, or unclear ownership structure raises a red flag.

Long Approval Timelines

Believe it or not, procuring an iGaming license isn’t easy. However, some jurisdictions like Curacao offer fastest licensing. While others like the UK and Isle of Man take longer.

High Costs

Not every jurisdiction is cost-effective when it comes to obtaining a gaming license. As per the jurisdiction, operators have to pay license fees, software certification, legal support, and ongoing compliance fees.

Changing Regulations

Laws and regulations are constantly evolving with time. Staying updated with the latest compliance, rules, laws, and regulations is essential to avoid non-compliance.

Bonus Tips for a Successful Licensing Application

• Get your documents right the very first time
• Understand your targeted jurisdiction’s rules properly
• Be honest and transparent during background checks
• Always have a solid business plan
• If required, hire legal and regulatory experts
• Implement AML & KYC policies early
• Keep communication open and clear

Final Wordings

All-in-all, you can determine that the iGaming industry is intricate and obtaining an online gaming license is a multi-stage process.

Following all the steps and preparing all the documents in advance can save your time and reduce last minute hassle.

As an aspiring operator, you need the best available choices to support your business. The software you pick should be supported by gambling licensing needs across jurisdictions.

FAQs

• What can prevent you from getting an online gaming license?

  There are a number of reasons that can prevent you from getting a gaming license. This includes having a criminal background, insufficient funding, incomplete documentation, or failing to meet compliance standards set by regulatory authority.

• How to secure an online gaming license?

  To procure a license, pick a jurisdiction, collect all legal and financial documents, submit your application, and pass background checks. If possible, work with a legal consultant to streamline the process.

• How hard is it to get an online gaming license?

  Honestly, it can be a challenging task in well-regulated markets. Also, the process involves strict compliance, time-consuming paperwork, and financial vetting. However, expert help can make the task much easier.

• What is a gaming license, and why is it necessary?

  A gaming license is an official permit which lets operators run iGaming business legally. It ensures your platform meets fairness, security, and financial integrity standards.

• What are the general steps to obtain an online gaming license?

  There are various steps which include choosing jurisdiction, preparing the company's financial documents, passing background checks, and paying licensing fees.

• What types of gaming licenses are available?

  Well, licenses differ based on the jurisdiction but generally include B2B, B2C, and gaming specific licenses like casino, sports betting, and lottery.