What It Takes for an Online Casino to Get Licensed

In most regions, online gambling platforms such as sportsbooksand online casinos are required to obtain a license to operate. Gambling licenses hold gambling platforms accountable to meet set standards and regulations to protect players and prevent criminal activity. They also give players more peace of mind when gaming online, with players favourably looking at regulated and licensed options.

Gambling companies operating in more than one jurisdiction will hold multiple licenses, each with its own standards to adhere to. Licenses are required for more than just customer-facing online gambling companies. Gambling software developers and payment processors are also regulated to protect players and mitigate illegal activities.

A company must take many steps to apply for a gambling license, from developing a comprehensive business plan to providing adequate funding to pay for the license. The needs will vary from place to place, depending on the governing body; however, the following documentation is generally required as a bare minimum for a license application.

Business Registration

Before a business can be licensed, it must be registered. The application process includes providing all relevant registration documentation.

Business Plan

A business plan outlines all essential elements of business operations, making it a crucial document in assessing and running a business. It typically includes details of key personnel, a market analysis, the business structure, products or services, operational plans, marketing strategies, a competitive analysis, and financial projections. The business plan should consider specific requirements for the region being applied to. For example, some countrieslike the UK have strict regulations surrounding the marketing of online gambling organisations. A business plan might address these requirements by outlining how its marketing strategies will meet them.

Policies and Procedures

Online gambling companies must develop specific policies and procedures to address various concerns and liabilities. These policies and procedures should clearly outline how the business will address and mitigate concerns such as money laundering, fraudulent activity, cybersecurity, underage gambling, and problem gambling. For instance, anti-money laundering policies and procedures might include the training employees will undergo to identify and report suspicious activities and state whether a dedicated person will oversee all operations related to the identification and prevention of money laundering.

Minimum standards for these policies will vary from region to region, but most governing bodies will have requirements related to these concerns.

Customer Terms and Conditions

Alongside having policies and procedures for different legal concerns, many gambling regulatory bodies expect to see clearly laid out terms and conditions that will be shared with customers. These terms and conditions, which can be found on most websites and online platforms, typically outline how operations will work between a website’s users and the website and the rights and responsibilities of each.

Terms and conditions commonly include an overview of any laws governing a company and its products or services, rules of conduct for website users, privacy policies, and contact information. Online gambling companies must also include information about payment methods, minimum and maximum deposits and withdrawals, rules of play (which will be explored further in the next section), and responsible gambling tools, resources, and policies.

Rules of Play

From slot games with big bet (bonus buy) options to classic table games like Blackjack andTexas Hold ’em, an online gambling operator needs to establish clear rules. These will help ensure fair gameplay (like the use of random number generators) and will be an essential item playersneed access to. The rules will explain how games work, the odds or chances of winning, minimum and maximum betting amounts, and anything else necessary forgameplay.

Gambling Software Supplier Information

While gambling developers require their own licenses to operate, if an online casino or any other gambling platform uses gambling software provided byan external developer, it must keep a record of all the suppliers it works with and what theyhave supplied.

Personal Identification

The business owner or owners applying for their business’s gambling license must provide personal identification to prove their identity as part of the application process. Some regions might also require a background check or additional personal information.

Bank Statements and Financial Projections

The licensing process often requires financial information about a business and proof that the applicant has enough funds to pay for the license application, which can cost tens or even hundreds of thousands of dollars.

Maintaining a Gambling License

Once a license is obtained and approved, online gambling companies must continue working to maintain good standing within their operating jurisdictions. At the very least, they must:

Keep Up With Regulatory Changes

The online gambling landscape is rapidly changing, and each country, as well as its states, provinces, and territories, has shifting regulations to meet these changes or public demands. For operators, this means keeping up with regulation changes in every jurisdiction they’re licensed in and ensuring they remain compliant to avoid having their license forfeited.

Protect Players’ Best Interests

Most licensing bodies place a significant emphasis on protecting players and their best interests. If a gambling company doesn’t prioritise player protection, its license can be revoked.

Maintain Proper Records

Proper records, not just financial records but anything else pertinent to operations and maintaining a gambling license, are also essential for maintaining a license over the long term.

Conclusion

While the proliferation of online gambling organisations may make it appear that obtaininga gambling license is easy, it can be a lengthy, expensive, and time-consuming process—whichis a good thing. It helps to prevent the growth of unregulated online gambling options that can become hubs for criminal activity that negatively affect economies and, even more concerningly, unsuspecting players.