An online casino is required to apply for a gambling license in order to be legally allowed to process payments and to use the gaming content of the biggest software providers. Keep in mind that the licensing process in the mentioned countries is much more expensive, and taxes are higher. For example, in England, a permission to conduct activities requires about $40000 as the initial payment. It is your hallmark, your storefront, your primary gaming business tool. The casino license itself cost $ 24 000. However, this amount may vary depending on various factors, such as services for the urgency or the opening of additional accounts. After receiving an online gambling license each casino owner gets an opportunity to operate games.
So you are looking for a Maltese gambling license. This document goes over the costs and processes in order to obtain the license.
NOTICE
Malta is not the cheapest jurisdiction to obtain a casino license in, if you are looking for a more affordable license then we suggest taking a look at a Curacao gambling license which is better suited to tighter budgets.
Why Malta?
Malta is part of the European Union which makes it a very attractive jurisdiction to obtain a gambling license in. It comes with tax incentives and an expert work force.
What this document covers
This document covers the end to end application process with the Malta Gaming Authority ('MGA') as well as an overview of the related prices for the setup and the maintenance of a gambling company in Malta.
- Malta Gaming Authority (MGA) license types
- Malta gambling license application process
- Malta Gaming Authority fees
- Gaming Tax as Applicable by the MGA
- Share Capital Requirements
- Administration services
- Key official Services
- On-going operation
- Financial Audit
- How long does it take to get the Malta gambling license
- How do I find out if a casino is licensed in Malta?
Malta Gaming Authority license types
The Malta Gaming Authority offers four types of remote gaming licenses:
- Class 1 – a remote gaming licence (examples of Class 1 licences would include casino-type games and online lotteries) whereby operators manage their own risk on repetitive games. It is also possible to have a Class 1 on 4 licence whereby the Class 1 licensee operates its games on the software and in certain cases through the equipment of a Class 4 licensee;
- Class 2 – a remote betting licence (an example of a Class 2 licence would include fixed-odds betting) whereby operators manage their own risk on events based on a matchbook. It is possible to have a Class 2 on 4 licence whereby the Class 2 licensee operates its games on the software and in certain cases through the equipment of a Class 4 licensee;
- Class 3 – a licence to promote and/or abet remote gaming in or from Malta (an example of a Class 3 licence would include poker rooms and peer-to-peer (P2P) gaming). It is also possible to have a Class 3 on 4 licence whereby the Class 3 licensee operates its games on the software and in certain cases through the equipment of a Class 4 licensee;
- Class 4 – a licence to host and manage remote gaming operators, excluding the licensee itself, whereby software vendors provide management and hosting facilities on their platform. In essence this is a business to business (B2B) gaming licence.
Malta gambling license application process
In order to prevent any unnecessary delays in the process, our clients will undergo a pre-application process together with the Malta Gaming Authority (MGA). This will ensure the quality of the application and will be followed by the actual application process that consists of a number of steps:
- 1) The MGA will conduct a fit and proper exercise by assessing all information related to those involved in financing and management and on the business viability of the operation. In addition the MGA conducts integrity investigations with national and international regulatory bodies and law enforcement agencies.
- 2) The MGA conducts an in depth financial analysis of the applicant's business plan. It is expected to include a detailed forecast of the operation together with details pertaining to marketing and distribution strategies, HR planning, and growth targets.
- 3) Operational and Statutory – The applicant is examined on the instruments required to conduct the business. This process includes examining the Company's incorporation documents, the games, the business processes related to conducting the remote games, the rules, terms, conditions, and procedures of the games, the application architecture, and the system architecture.
- 4) The MGA will inform the applicant that the application was successful and will invite the applicant to implement onto a technical environment in preparation for going live. 60 days are allowed for the applicant to complete such operation. Within those 60 days, the applicant may request an external systems audit where the live environment will be examined against the proposed application. Once the certification process is completed, a five-year license will be issued by the MGA.
- 5) Once the licence is issued, an independent third party will be contracted by the MGA to perform a number of compliance audits of the licensees operation throughout the first and the third year of operation.
Malta Gaming Authority fees
| Description | Fee |
| Fee for a new licence of any class | €5,000.00 |
| Application fee for the renewal of any class | €5,000.00 |
| Systems Audit | €2,500.00 |
| Compliance Audit | €3,500.00 |
Annual licence fee
The annual license fee is paid to the MGA, previously this was a fixed fee for any class however as of 2018 this fee is changing as follows.
For a class 1, 2 or 3 license the annual fixed MGA fee is €25,000 and for a class 4 license €10,000. If a licensee has multiple classes of licenses (1, 2 or 3) the annual combined fixed fee is calculated on Gross Gaming Revenue:
| Revenue | Fee |
| Fee for a new licence of any class | €5,000.00 |
| -5Mln EUR | €25,000.00 |
| 5mln – 10mln EUR | €30,000.00 |
| + 10mln EUR | €35,000.00 |
Compliance contribution
The MGA has introduced this new fee which is based on Grosse Gaming Revenue and has minimal annual contributions which differ per class:
| Class 1: Annual Compliance contribution – Minimal fee €15.000, Max €375.000 | Rate |
| For every euro of the first €3,000,000 | 1.25% |
| For every euro of the next €4,500,000 | 1.00% |
| For every euro of the next €5,000,000 | 0.85% |
| For every euro of the next €7,500,000 | 0.70% |
| For every euro of the next €10,000,000 | 0.55% |
| For every euro of the remainder | 0.40% |
| Class 2: Annual Compliance contribution – Minimal fee €25.000, Max €600.000 | Rate |
| For every euro of the first €3,000,000 | 4.00% |
| For every euro of the next €4,500,000 | 3.00% |
| For every euro of the next €5,000,000 | 2.00% |
| For every euro of the next €7,500,000 | 1.00% |
| For every euro of the next €10,000,000 | 0.80% |
| For every euro of the next €10,000,000 | 0.60% |
| For every euro of the remainder | 0.40% |
| Class 3: Annual Compliance contribution – Minimal fee €25.000, Max €500.000 | Rate |
| For every euro of the first €2,000,000 | 4.00% |
| For every euro of the next €3,000,000 | 3.00% |
| For every euro of the next €5,000,000 | 2.00% |
| For every euro of the next €5,000,000 | 1.00% |
| For every euro of the next €5,000,000 | 0.80% |
| For every euro of the next €10,000,000 | 0.60% |
| For every euro of the remainder | 0.40% |
| Class 4: Annual Compliance contribution – Minimal fee €5.000, Max €500.000 | Rate |
| For every euro of the first €2,000,000 | 0.50% |
| For every euro of the next €3,000,000 | 0.75% |
| For every euro of the next €5,000,000 | 1.00% |
| For every euro of the next €5,000,000 | 1.25% |
| For every euro of the next €5,000,000 | 1.50% |
| For every euro of the next €10,000,000 | 1.75% |
| For every euro of the remainder | 2.00% |
Gaming Tax as Applicable by the MGA
- Class 1 – €4,660.00 per month for the first six months and €7,000.00 per subsequent month;
- Class 1 on 4 – €1,200.00 per month;
- Class 2 – 0.5% on the gross amount of all bets accepted;
- Class 3 and Class 3 on 4 – 5% of real income;
- Class 4 – No Tax levied for the first six months of operation, €2,330.00 per month for the subsequent six months, and €4,660.00 per subsequent month for the entire duration of the licence
Share Capital Requirements
When incorporating the company on Malta, the MGA requires that companies operating a class 1 or 2 license have a share capital of €100.000. For class 3 or 4 license holders this amount is €40.000. Companies applying for multiple licenses amounts will be cumulative.
An idea of corporate setup fees for a Maltese gambling company
| Description | Fee |
| Incorporation Fee (This includes name reservation, customer due diligence process, M&As, Share Register, VAT application, income tax application, excl. MFSA Registration Fee) | €1,200.00 – €2,000.00 |
| Registered office (optional) | €500 – €1000.00 |
| Corporate Director (optional) | Price on request |
| Company Secretary | €500 – €1000 |
| Annual Compliance (KYC) Maintenance | €250 – €500 |
| Management Fee Package | €3,000.00 – €5,000.00 |
| Assistance opening a bank account | €1,000.00 – €2,000.00 |
Administration services
| Description |
| Book Keeping |
| Legal Administration |
| The legal and financial administrational services will be charged against the applicable hourly rates which may vary from €60 to €250 per hour, depending on the experience of the employee involved. |
The above fees are per class of license.
Typically the fees will include assistance with the drafting of the business plan, financial prognosis, and system documentation.
Key official Services
A Key Official is a natural person, approved and licensed by the MGA to act as a main point of contact towards the said authority on behalf of the gaming company licensed in Malta. Key Official services cost on average €1,000 per month. This will also include the preparation and submission of the player liability reports of the company, gaming tax reports, the quarterly returns, completion of any other returns due by the company (such as questionnaires/consultation papers) to the MGA amongst other duties generally incumbent upon directors by application of the law.
On-going operations
If preferred a service provider can assist with the on-going daily financial and legal matters of the company. The type of service will depend on your personal preferences and below is an example of the services a gaming company may expect to be made available to them:
- Filing of the annual returns
- Preparing and processing bank transactions
- Preparation of bookkeeping and related annual financial statements
- Company VAT(quarterly), annual tax and tax refund filings
- Payroll services
- Mini One Stop Shop (Moss) VAT compliance
- Preparation of dividend warrants
- Certification of documents
- Legal administration (e.g. drafting/reviewing contracts or agreements)
- Liaising with the auditors
- Residency applications and opening of bank accounts for employees
We would recommend negotiating fixed monthly fees to cover the above services allowing you to budget appropriately.
Financial Audit
Audit fees (external auditor) start at €1,500. The actual fee highly depends on the amount of activities within the company.
How long does it take to get the license?
Where can a Malta Gambling license be used?
Casinos licensed under a Malta Gambling License can offer services to players in over 180 countries.
It is far simpler to list the countries where the Malta Gambling License can not be used: USA, Australia, China, Hong Kong, Macau, Turkey, Iran, Iraq, Syria, Indonesia, and Malaysia. Some European countries are barred too: France, Spain, Italy, Portugal, Austria, Belgium, the Czech Republic, Slovenia, Lithuania, Estonia, and Denmark.
How do I find out if a casino is licensed in Malta?
Online Casino Licence Cost Online
It is not uncommon for casinos to 'pretend' to have a Malta Gambling License. If you want to find out for sure if a casino is indeed registered and licensed in Malta you can visit
the MGA Gaming License Register for further information.
In previous articles we talked lots about social gambling, live dealer casinos and casino white labeling , but today we want to talk about a crucial component for any gambling business. We all know that lots of online gambling operators who work without a proper license and they get by pretty well.
Some companies even make a living through legalizing sketchy gamblers, saving them some time and maintenance expenses, and basically giving them a fast-track ticket to the business. Looks like an easy way to accumulate some quick profit, but there are more disadvantages of going underground than you might think – some countries are very serious when it comes to illegal gambling (even online), so your dreams of wealth could easily end up in a jail cell. There is no need to risk working in the shadows when you can make this legal and easy, with certain countries even offering very liberal gambling jurisdictions.
Rules on Getting a License
Getting an online gambling license has to be your priority as it's a direct pass into the business. Nothing happens without a gaming license. You'll need it to open bank and merchant accounts, work with electronic payment system providers and buy legal gaming content. Not to mention you'll need a license for more effective marketing and increasing customer loyalty though the reputation of your casino. It's actually easy to get a license if you play by the rules, so follow these steps before applying for a gaming license:
- Choose countries that meet your current needs and possibilities. Do research on gambling jurisdictions: their requirements, costs, taxation policy and application processing time. You can speed up research by consulting with a lawyer.
- Start preparing personal documents in advance. You'll need a copy of your passport, proof of address, a criminal background check and a reference from your bank.
- Make sure your casino software meets jurisdiction requirements. Prepare a list that includes detailed descriptions of software functionality and games, agreements with software providers and a certificate of the RNG.
- Check if the online casino website contains information required by your gambling jurisdiction. Many gambling jurisdictions check for information on terms and conditions, responsible gambling, self-exclusion policy, withdrawal policy, etc.
Every country has different rules when it comes to gambling regulation. Gambling laws – much like all country laws in general – tend to vary from country to country. In many places, such as the UK, gambling is heavily regulated by both government and non-government organizations to ensure that people are safe from scams. Some countries are very strict on gambling laws, thus making operators turn to cheaper and less regulated jurisdictions. You should consider offshoring if you get caught in a situation where starting a gambling service in your home country is just too expensive and difficult. Getting an online gambling license abroad could be a lot easier and faster.
However, each offshore area has its own rules and laws, and the cost of the gambling license may vary from several thousand dollars to hundreds of thousands. Before making the final choice, you need to consider all nuances of gambling jurisdictions. Here is a list of popular locations for offshoring your online casino.
Read also: Online Gambling In Eastern Europe – Brief Guide To Legislation
Antigua and Barbuda
Setting up a gambling service in this island country can be very costly. The application fee is $15,000 and the annual gaming license cost for obtaining an interactive gambling license is $100,000. On average, the application process takes up to 2 months. You can get two types of licenses: one for interactive gaming companies including online casinos, and the second one is for interactive wagering companies. Before opening an online casino you have to reserve of no less than $100,000. This will act as a form of security for your website players. The annual monitoring system fee is $25,000 per license. Plus, similar to health warnings on cigarette packages, it is obligatory to place a website banner warning users about compulsive gambling and about contacting organizations that can help them to deal with their addiction.
Curacao
Curacao is the fastest and cheapest solution to open an online casino. Getting a gambling license takes just 6 weeks. You can apply for a master license covering all game types, software providers, and product operators, or you can get a sublicense to work under the auspices of the master license. The application fee is just about €2,000; the monthly license support fee is €1,500. If your gambling business is registered in another country, you can apply for a special Ezone permit to benefit from a low net corporate income tax rate of 2%, and a 0% tax rate on gross bets. Curacao is a good choice for businesses who want to open their online casino as soon as possible. They can get a fast Curacao online gambling license while waiting for the approval of their application in another gambling jurisdiction.
Malta
An independent republic and a member of the European Union, Malta is a large and reputable gambling jurisdiction offering affordable rates. The gaming taxes in Malta can vary depending on the class of your license. In general, online casino-style games require a Class 1 license. In this case, the gaming taxes are €4,660 per month during the first six months, and then they rise to €7,000 per month. The minimum share capital required for a Class 1 license is €100,000. The license application process is quite long because you need to go through five stages including several compliance audits. You'll need to provide your personal and financial information and business plan with a detailed review of marketing strategies and growth targets.
Montenegro
Montenegro has been offering gambling licenses for online casinos, sports betting, poker games, etc. since 2012. They have a special 'all-in-one' service packet that includes all operational costs for opening and registering your business, getting a license and payment processing. The package fee is €25.000 for the first year and €15.000 for each successive year. Montenegro offers a fast and easy license application process. A new business can be registered just for two days, and there is practically no minimum capital requirement to form a limited liability company and get an online gambling license. Another advantage of the Montenegro jurisdiction is a low 9% corporate and personal tax rate.
Isle of Man
What this document covers
This document covers the end to end application process with the Malta Gaming Authority ('MGA') as well as an overview of the related prices for the setup and the maintenance of a gambling company in Malta.
- Malta Gaming Authority (MGA) license types
- Malta gambling license application process
- Malta Gaming Authority fees
- Gaming Tax as Applicable by the MGA
- Share Capital Requirements
- Administration services
- Key official Services
- On-going operation
- Financial Audit
- How long does it take to get the Malta gambling license
- How do I find out if a casino is licensed in Malta?
Malta Gaming Authority license types
The Malta Gaming Authority offers four types of remote gaming licenses:
- Class 1 – a remote gaming licence (examples of Class 1 licences would include casino-type games and online lotteries) whereby operators manage their own risk on repetitive games. It is also possible to have a Class 1 on 4 licence whereby the Class 1 licensee operates its games on the software and in certain cases through the equipment of a Class 4 licensee;
- Class 2 – a remote betting licence (an example of a Class 2 licence would include fixed-odds betting) whereby operators manage their own risk on events based on a matchbook. It is possible to have a Class 2 on 4 licence whereby the Class 2 licensee operates its games on the software and in certain cases through the equipment of a Class 4 licensee;
- Class 3 – a licence to promote and/or abet remote gaming in or from Malta (an example of a Class 3 licence would include poker rooms and peer-to-peer (P2P) gaming). It is also possible to have a Class 3 on 4 licence whereby the Class 3 licensee operates its games on the software and in certain cases through the equipment of a Class 4 licensee;
- Class 4 – a licence to host and manage remote gaming operators, excluding the licensee itself, whereby software vendors provide management and hosting facilities on their platform. In essence this is a business to business (B2B) gaming licence.
Malta gambling license application process
In order to prevent any unnecessary delays in the process, our clients will undergo a pre-application process together with the Malta Gaming Authority (MGA). This will ensure the quality of the application and will be followed by the actual application process that consists of a number of steps:
- 1) The MGA will conduct a fit and proper exercise by assessing all information related to those involved in financing and management and on the business viability of the operation. In addition the MGA conducts integrity investigations with national and international regulatory bodies and law enforcement agencies.
- 2) The MGA conducts an in depth financial analysis of the applicant's business plan. It is expected to include a detailed forecast of the operation together with details pertaining to marketing and distribution strategies, HR planning, and growth targets.
- 3) Operational and Statutory – The applicant is examined on the instruments required to conduct the business. This process includes examining the Company's incorporation documents, the games, the business processes related to conducting the remote games, the rules, terms, conditions, and procedures of the games, the application architecture, and the system architecture.
- 4) The MGA will inform the applicant that the application was successful and will invite the applicant to implement onto a technical environment in preparation for going live. 60 days are allowed for the applicant to complete such operation. Within those 60 days, the applicant may request an external systems audit where the live environment will be examined against the proposed application. Once the certification process is completed, a five-year license will be issued by the MGA.
- 5) Once the licence is issued, an independent third party will be contracted by the MGA to perform a number of compliance audits of the licensees operation throughout the first and the third year of operation.
Malta Gaming Authority fees
| Description | Fee |
| Fee for a new licence of any class | €5,000.00 |
| Application fee for the renewal of any class | €5,000.00 |
| Systems Audit | €2,500.00 |
| Compliance Audit | €3,500.00 |
Annual licence fee
The annual license fee is paid to the MGA, previously this was a fixed fee for any class however as of 2018 this fee is changing as follows.
For a class 1, 2 or 3 license the annual fixed MGA fee is €25,000 and for a class 4 license €10,000. If a licensee has multiple classes of licenses (1, 2 or 3) the annual combined fixed fee is calculated on Gross Gaming Revenue:
| Revenue | Fee |
| Fee for a new licence of any class | €5,000.00 |
| -5Mln EUR | €25,000.00 |
| 5mln – 10mln EUR | €30,000.00 |
| + 10mln EUR | €35,000.00 |
Compliance contribution
The MGA has introduced this new fee which is based on Grosse Gaming Revenue and has minimal annual contributions which differ per class:
| Class 1: Annual Compliance contribution – Minimal fee €15.000, Max €375.000 | Rate |
| For every euro of the first €3,000,000 | 1.25% |
| For every euro of the next €4,500,000 | 1.00% |
| For every euro of the next €5,000,000 | 0.85% |
| For every euro of the next €7,500,000 | 0.70% |
| For every euro of the next €10,000,000 | 0.55% |
| For every euro of the remainder | 0.40% |
| Class 2: Annual Compliance contribution – Minimal fee €25.000, Max €600.000 | Rate |
| For every euro of the first €3,000,000 | 4.00% |
| For every euro of the next €4,500,000 | 3.00% |
| For every euro of the next €5,000,000 | 2.00% |
| For every euro of the next €7,500,000 | 1.00% |
| For every euro of the next €10,000,000 | 0.80% |
| For every euro of the next €10,000,000 | 0.60% |
| For every euro of the remainder | 0.40% |
| Class 3: Annual Compliance contribution – Minimal fee €25.000, Max €500.000 | Rate |
| For every euro of the first €2,000,000 | 4.00% |
| For every euro of the next €3,000,000 | 3.00% |
| For every euro of the next €5,000,000 | 2.00% |
| For every euro of the next €5,000,000 | 1.00% |
| For every euro of the next €5,000,000 | 0.80% |
| For every euro of the next €10,000,000 | 0.60% |
| For every euro of the remainder | 0.40% |
| Class 4: Annual Compliance contribution – Minimal fee €5.000, Max €500.000 | Rate |
| For every euro of the first €2,000,000 | 0.50% |
| For every euro of the next €3,000,000 | 0.75% |
| For every euro of the next €5,000,000 | 1.00% |
| For every euro of the next €5,000,000 | 1.25% |
| For every euro of the next €5,000,000 | 1.50% |
| For every euro of the next €10,000,000 | 1.75% |
| For every euro of the remainder | 2.00% |
Gaming Tax as Applicable by the MGA
- Class 1 – €4,660.00 per month for the first six months and €7,000.00 per subsequent month;
- Class 1 on 4 – €1,200.00 per month;
- Class 2 – 0.5% on the gross amount of all bets accepted;
- Class 3 and Class 3 on 4 – 5% of real income;
- Class 4 – No Tax levied for the first six months of operation, €2,330.00 per month for the subsequent six months, and €4,660.00 per subsequent month for the entire duration of the licence
Share Capital Requirements
When incorporating the company on Malta, the MGA requires that companies operating a class 1 or 2 license have a share capital of €100.000. For class 3 or 4 license holders this amount is €40.000. Companies applying for multiple licenses amounts will be cumulative.
An idea of corporate setup fees for a Maltese gambling company
| Description | Fee |
| Incorporation Fee (This includes name reservation, customer due diligence process, M&As, Share Register, VAT application, income tax application, excl. MFSA Registration Fee) | €1,200.00 – €2,000.00 |
| Registered office (optional) | €500 – €1000.00 |
| Corporate Director (optional) | Price on request |
| Company Secretary | €500 – €1000 |
| Annual Compliance (KYC) Maintenance | €250 – €500 |
| Management Fee Package | €3,000.00 – €5,000.00 |
| Assistance opening a bank account | €1,000.00 – €2,000.00 |
Administration services
| Description |
| Book Keeping |
| Legal Administration |
| The legal and financial administrational services will be charged against the applicable hourly rates which may vary from €60 to €250 per hour, depending on the experience of the employee involved. |
The above fees are per class of license.
Typically the fees will include assistance with the drafting of the business plan, financial prognosis, and system documentation.
Key official Services
A Key Official is a natural person, approved and licensed by the MGA to act as a main point of contact towards the said authority on behalf of the gaming company licensed in Malta. Key Official services cost on average €1,000 per month. This will also include the preparation and submission of the player liability reports of the company, gaming tax reports, the quarterly returns, completion of any other returns due by the company (such as questionnaires/consultation papers) to the MGA amongst other duties generally incumbent upon directors by application of the law.
On-going operations
If preferred a service provider can assist with the on-going daily financial and legal matters of the company. The type of service will depend on your personal preferences and below is an example of the services a gaming company may expect to be made available to them:
- Filing of the annual returns
- Preparing and processing bank transactions
- Preparation of bookkeeping and related annual financial statements
- Company VAT(quarterly), annual tax and tax refund filings
- Payroll services
- Mini One Stop Shop (Moss) VAT compliance
- Preparation of dividend warrants
- Certification of documents
- Legal administration (e.g. drafting/reviewing contracts or agreements)
- Liaising with the auditors
- Residency applications and opening of bank accounts for employees
We would recommend negotiating fixed monthly fees to cover the above services allowing you to budget appropriately.
Financial Audit
Audit fees (external auditor) start at €1,500. The actual fee highly depends on the amount of activities within the company.
How long does it take to get the license?
Where can a Malta Gambling license be used?
Casinos licensed under a Malta Gambling License can offer services to players in over 180 countries.
It is far simpler to list the countries where the Malta Gambling License can not be used: USA, Australia, China, Hong Kong, Macau, Turkey, Iran, Iraq, Syria, Indonesia, and Malaysia. Some European countries are barred too: France, Spain, Italy, Portugal, Austria, Belgium, the Czech Republic, Slovenia, Lithuania, Estonia, and Denmark.
How do I find out if a casino is licensed in Malta?
Online Casino Licence Cost Online
It is not uncommon for casinos to 'pretend' to have a Malta Gambling License. If you want to find out for sure if a casino is indeed registered and licensed in Malta you can visit
the MGA Gaming License Register for further information.
In previous articles we talked lots about social gambling, live dealer casinos and casino white labeling , but today we want to talk about a crucial component for any gambling business. We all know that lots of online gambling operators who work without a proper license and they get by pretty well.
Some companies even make a living through legalizing sketchy gamblers, saving them some time and maintenance expenses, and basically giving them a fast-track ticket to the business. Looks like an easy way to accumulate some quick profit, but there are more disadvantages of going underground than you might think – some countries are very serious when it comes to illegal gambling (even online), so your dreams of wealth could easily end up in a jail cell. There is no need to risk working in the shadows when you can make this legal and easy, with certain countries even offering very liberal gambling jurisdictions.
Rules on Getting a License
Getting an online gambling license has to be your priority as it's a direct pass into the business. Nothing happens without a gaming license. You'll need it to open bank and merchant accounts, work with electronic payment system providers and buy legal gaming content. Not to mention you'll need a license for more effective marketing and increasing customer loyalty though the reputation of your casino. It's actually easy to get a license if you play by the rules, so follow these steps before applying for a gaming license:
- Choose countries that meet your current needs and possibilities. Do research on gambling jurisdictions: their requirements, costs, taxation policy and application processing time. You can speed up research by consulting with a lawyer.
- Start preparing personal documents in advance. You'll need a copy of your passport, proof of address, a criminal background check and a reference from your bank.
- Make sure your casino software meets jurisdiction requirements. Prepare a list that includes detailed descriptions of software functionality and games, agreements with software providers and a certificate of the RNG.
- Check if the online casino website contains information required by your gambling jurisdiction. Many gambling jurisdictions check for information on terms and conditions, responsible gambling, self-exclusion policy, withdrawal policy, etc.
Every country has different rules when it comes to gambling regulation. Gambling laws – much like all country laws in general – tend to vary from country to country. In many places, such as the UK, gambling is heavily regulated by both government and non-government organizations to ensure that people are safe from scams. Some countries are very strict on gambling laws, thus making operators turn to cheaper and less regulated jurisdictions. You should consider offshoring if you get caught in a situation where starting a gambling service in your home country is just too expensive and difficult. Getting an online gambling license abroad could be a lot easier and faster.
However, each offshore area has its own rules and laws, and the cost of the gambling license may vary from several thousand dollars to hundreds of thousands. Before making the final choice, you need to consider all nuances of gambling jurisdictions. Here is a list of popular locations for offshoring your online casino.
Read also: Online Gambling In Eastern Europe – Brief Guide To Legislation
Antigua and Barbuda
Setting up a gambling service in this island country can be very costly. The application fee is $15,000 and the annual gaming license cost for obtaining an interactive gambling license is $100,000. On average, the application process takes up to 2 months. You can get two types of licenses: one for interactive gaming companies including online casinos, and the second one is for interactive wagering companies. Before opening an online casino you have to reserve of no less than $100,000. This will act as a form of security for your website players. The annual monitoring system fee is $25,000 per license. Plus, similar to health warnings on cigarette packages, it is obligatory to place a website banner warning users about compulsive gambling and about contacting organizations that can help them to deal with their addiction.
Curacao
Curacao is the fastest and cheapest solution to open an online casino. Getting a gambling license takes just 6 weeks. You can apply for a master license covering all game types, software providers, and product operators, or you can get a sublicense to work under the auspices of the master license. The application fee is just about €2,000; the monthly license support fee is €1,500. If your gambling business is registered in another country, you can apply for a special Ezone permit to benefit from a low net corporate income tax rate of 2%, and a 0% tax rate on gross bets. Curacao is a good choice for businesses who want to open their online casino as soon as possible. They can get a fast Curacao online gambling license while waiting for the approval of their application in another gambling jurisdiction.
Malta
An independent republic and a member of the European Union, Malta is a large and reputable gambling jurisdiction offering affordable rates. The gaming taxes in Malta can vary depending on the class of your license. In general, online casino-style games require a Class 1 license. In this case, the gaming taxes are €4,660 per month during the first six months, and then they rise to €7,000 per month. The minimum share capital required for a Class 1 license is €100,000. The license application process is quite long because you need to go through five stages including several compliance audits. You'll need to provide your personal and financial information and business plan with a detailed review of marketing strategies and growth targets.
Montenegro
Montenegro has been offering gambling licenses for online casinos, sports betting, poker games, etc. since 2012. They have a special 'all-in-one' service packet that includes all operational costs for opening and registering your business, getting a license and payment processing. The package fee is €25.000 for the first year and €15.000 for each successive year. Montenegro offers a fast and easy license application process. A new business can be registered just for two days, and there is practically no minimum capital requirement to form a limited liability company and get an online gambling license. Another advantage of the Montenegro jurisdiction is a low 9% corporate and personal tax rate.
Isle of Man
The Isle of Man is an independent self-governing island providing a stable environment for gambling businesses. The Gambling Supervision Commission offers 3 levels of a gambling license: Network Services license, full license and sub-license. The full gaming license is a single license for your gaming business – the application fee is £5,000, the annual fee is £35,000. The licensing process takes 10-12 weeks. In order to gain a gambling license, the business should be registered in the Isle of Man and all related casino servers must also be hosted in the Isle of Man. The island offers an attractive 0% corporation tax rate, but you will need to pay the gambling duty – 0.1- 1.5% depending on the gross profit.
Panama
If you are looking to open an online casino in Panama, you should know that the laws here allow operators to be exempt of all taxes – as long as the income comes from outside Panama, there are no taxes, including income tax, sales tax or VAT. Offshore companies are also not subject to foreign exchange control, but operators must monitor game payouts and make sure that records of all transactions are available for inspection by the Government. More than that, all operators must comply with international money laundering regulations. An online gambling license costs $40,000, and the additional annual fee costs $20,000. The license lasts for 7 years.
Gibraltar
Gibraltar has very good grounds for starting a gambling business. The cost of the license depends on the gambling type and the company structure – it may be between $30,000 and $70,000. The license is issued for 5 years with the annual extending cost around $2800. Seems like the gaming license is pretty expensive, but the main advantage of this jurisdiction is taxes. Gambling business tax is 1% from revenues. Moreover, tax can't be higher than £425,000 and lower than £85,000 per year. This tax is very profitable and almost zero for huge companies with higher revenues.
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What to Choose?
Casino License Cost
Getting an online gambling license can be tricky if you lack understanding on how certain jurisdictions work. It's very important to prepare in advance and get your paperwork ready before applying. Don‘t forget that your software, finances and reputation will also be under the scope, so make sure everything is clear – it‘s better to get ready in advance than waste time gathering documents and choosing countries. Every country is different when it comes to gambling laws; that‘s why your goal is to choose a state that meets your specific needs. Choosing a country with liberal gambling laws might be beneficial, because you‘ll likely save time and money on processing and maintaining a license.
