Getting a casino licence is essential for casinos to keep them in the law books and win the trust of players. New casino start-ups face a lot of challenges establishing themselves in the business, including acquiring a casino licence. Casinokokemus.com has a lot of new casinos, also called "netticasino” in Finnish.
What is a casino licence? It is a certificate of the authorisation given to successful casino applicants. A lot of casinos operate underground without a casino licence and still make loads of money. This strategy is risky. In some countries, it is illegal to function without one. The punishment for gambling without a licence can be severe and can include jail time.
If you do not understand how the process works, getting an online gambling licence can be a daunting task. Here are some of the top challenges new casinos face when trying to acquire a casino licence.
Paperwork
Many new casinos struggle with getting the necessary documents needed for acquiring a casino licence. Before you apply, find out the vital documents needed to get a licence. Usually, this information is readily available online on the website of the casino regulatory body.
Getting and submitting the necessary paper works can be stressful. Employ a lawyer to handle it while you focus on other important aspects of your new casino business.
Different requirements for different countries
Every country has its requirement for getting a gambling licence. The gambling laws vary from country to county. Some countries are open to gambling, others ban it and, in some countries, it is limited. Applying for a casino licence in a country that has a ban on gambling activities is a recipe for frustrations. When selecting the state or country where you want to apply for a gambling licence, choose the ones that are favourable to you.
Consider countries that have beneficial gambling requirements. It will save you time and energy. Also, you won't apply in a country where you can quickly acquire a licence, where the licensing and maintenance fees are low.
Unfavourable requirement for new casinos
Many new casinos struggle to meet the requirements set by the licensing authority in their country. These requirements are set to regulate the conduct of casino activities and ensure that only authentic casinos can acquire the licence. Unfortunately, for new casinos, meeting these requirements can be difficult.
Some of the common form of licensing requirement, similar across countries include:
- Establishing the integrity of the casino
- Revealing financial information about its owners, partners, and organisation
- Providing criminal information of influential members of the organisation
These requirements from a glance look similar to what financial institutions require for loan application. Taking a closer look, new casinos hardly have any track record to meet the integrity mark.
In some countries, these requirements are more stringent than this. While designed to keep out fraudsters, it is also causing difficulties for many new authentic casinos.
Another problem is that new casinos may have to repeat licensing applications across different states and countries they want to operate in. Fortunately, some countries make it possible for casinos to apply for a multi-jurisdictional licence. This makes it easy for casinos to apply at once for different states' licences.
Cost of acquiring a casino licence
Online gambling licence fees can be too expensive for new casinos. They are certain fees to pay excluding the licensing fee during the application process. They include lawyer fees, due diligence costs on shareholders and directors, cost of setting up a business plan, and technology and hosting provider certification costs. Licensing fees are where the bulk of the cost comes in.
In the United Kingdom, the licensing fee is relatively low but note that you will have to pay 15 per cent of profits as tax. In Italy, the licensing fee is €300k for a 10-year licence. You will still have to pay €70k annually and pay 20 per cent of profit as tax. Other costs include reporting costs, inspection costs, and on-going certificates.
Easing casino requirements for new casinos There are gambling jurisdictions such as Malta that make it easy for new casinos to quickly acquire their casino licences. Preparing for the licensing requirements before applying helps ease the process.
Disclaimer: Play responsibly. Players must be over 18. For help visit https://www.gamcare.org.uk