Gambling license and gaming company abroad

The modern gambling or iGaming industry is experiencing a period of significant growth, particularly in the online space, driven by increasing internet and mobile device usage, the search for new entertainment, and convenient access to online gaming.

The global online gambling market is expected to reach $153 billion by 2030, indicating substantial development potential. Growing internet penetration, especially the implementation of 5G technology and increased mobile phone usage for online gaming, are driving demand for online gambling.

• Reduced Regulatory Burden: Some jurisdictions, especially those offering "multi-jurisdictional" licenses (Curaçao, Anjouan, etc.), provide simpler licensing procedures, lower regulatory compliance costs, and greater business management flexibility.
• Opportunity to Obtain an Internationally Recognized License: Licenses issued in countries like Malta or the Isle of Man, and even Curaçao, which has gained significant popularity in the iGaming industry over the years, provide a high level of international market trust, facilitating the attraction of more clients and partners.
• Access to New Markets: Registering a gambling company abroad opens access to new markets, clients, more reliable and competitive gaming providers, and payment service providers.
• Tax Advantages and Favorable Regulation: Some countries offer more favorable tax conditions for gambling businesses, such as special tax regimes for this sector, less stringent regulation, and a larger number of players.
• Access to Advanced Technological Infrastructure: Countries focused on the gaming sector have more developed technological infrastructure for gambling businesses, allowing the use of advanced technologies and platforms.
• Global Business Expansion: Registering a company abroad can be the first step in international expansion, enabling the company to expand its business beyond national borders.
• Flexibility in Corporate Structure: Many jurisdictions have tools for optimizing corporate structure, making company management, tax planning, and partner interactions easier.
• Risk Diversification: Conducting business in multiple jurisdictions and markets helps minimize risks associated with economic or political changes.

Basic Rules for Opening Gambling Companies

Opening a gambling company requires adherence to a series of rules and regulations that may vary depending on the jurisdiction. However, several key rules can be highlighted for opening a gambling company abroad:

1. Market Selection

First, before starting the licensing process, it is essential to clearly define the list of markets or countries where services will be targeted. This stage is crucial as it determines the business development strategy, regulatory requirements, and potential challenges that may arise when entering the selected markets. This issue is closely related to the ability to generate online traffic in the potentially targeted markets.

2. Jurisdiction Selection

The next step is choosing the jurisdiction where the license will be obtained, as different jurisdictions have different gambling laws and rules. It is important to choose one that meets your needs. When selecting a jurisdiction, consider factors such as political and economic climate stability, tax rates and licensing fees, regulatory requirements, and target market.

3. Obtaining a License

After the jurisdiction is chosen, you need to obtain a gambling license, as the gaming industry is considered high-risk and subject to exclusive verification. The licensing process can be complex and time-consuming, but with professional legal support, this stage can be navigated without unnecessary expenses.

4. Selecting a Technology Provider

The next stage is choosing a technological provider who will help launch and operate your gambling platform. An iGaming operator can use either a proprietary gambling platform or third-party provider services. If third-party services are planned, it is crucial to have a reliable technical infrastructure to ensure uninterrupted internet gambling platform operation and ensure user data and financial security.

Therefore, the technology provider should have experience in the gambling industry and offer a wide range of services, such as software development, payment integration, fraud protection, and customer service.

5. Selecting a Banking Service Provider

Since online games often involve direct settlements, you need to open an account (bank or payment system) to process payments from your players. Independently opening such an account is quite challenging, as most financial providers are unwilling to work with this risk level, so professional specialist support is essential.

6. Marketing and Advertising

Advertising is equally important. It is necessary to comply with gambling advertising and marketing rules, including restrictions on attracting minors and the mandatory honesty and transparency in advertising campaigns to avoid being placed on advertiser blacklists.

7. Compliance with Rules

After obtaining the gambling license, iGaming operators must adhere to all relevant laws and rules governing the gambling industry in their jurisdiction: AML/CTF legislation, implement effective financial transaction control systems to prevent fraud, and prohibit access to their services for underage players, etc.

It is important to note that non-compliance can lead to serious consequences, such as fines, license revocation, or even criminal prosecution.

Gambling Activity Licenses: Most Popular Countries

Jurisdictions like Curaçao, Anjouan, Malta, and the Isle of Man are known for their gambling industry friendliness and providing licenses for gambling companies. Obtaining a gambling license in these countries can be an attractive option for companies worldwide. Considering this, below are the main licensing features for gambling in each of these countries:

Obtaining a Gambling License in Curaçao

• Curaçao, as part of the Netherlands Antilles, has been known for its flexibility and relatively quick gaming license obtaining process.
• Two types of gaming licenses are distinguished: B2C and B2B.
• License processing time – up to 6 months.
• Tax: Curaçao has a territorial taxation system; the tax amount will be calculated based on income and expenses the company had during the year directly on the island.

Find out more about gambling licenses in Curaçao.

Obtaining Gambling Licenses on the Isle of Man

• The Isle of Man is an attractive jurisdiction for gambling companies due to its gambling-friendly approach and attractive tax regime.
• One general gambling activity license is issued, covering online casinos, lotteries. Sublicenses and network service licenses are also available.
• License applications are reviewed in about 10-12 weeks, with an overall processing time of about 6 months.
• Game tax – from 0.1% to 1.5% of gross gaming revenue (GGR), with lower rates for higher income.

More about gaming licenses in the Isle of Man.

Obtaining a Gambling License in Anjouan

• Anjouan, part of the Comoros Islands, became a popular jurisdiction for gambling companies after recent regulatory changes in Curaçao.
• No division into license types; a general license is applied for poker, lotteries, casinos, software services, and White Labeling services. Annual license renewal is required.
• License is issued for one year and requires renewal. Overall processing time – up to 3 months.
• Game tax – 0%, does not charge tax on gross gaming revenue.

More about gaming licenses in Anjouan.

Obtaining a Gambling License in Malta

• Malta is known for its reputation as one of the most prestigious jurisdictions for gambling companies in Europe.
• Two license types are available: Game Developer or Key Software License (B2B) and Online Gambling Operator License (B2C).
• License validity – 10 years. Processing time – up to 6 months.
• Game tax – 5%, levied on profits from Maltese players.

More about gaming licenses in Malta.

Each of these countries has its advantages and characteristics, and the choice of a location for obtaining a gambling license depends on the specific needs and strategies of a particular company.