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What are gambling licenses exactly?
The gambling license is the most convincing piece of evidence that an online casino’s operations can be trusted, as well as that all won money, transactions, and payout percentages are accurate. They are distributed by gambling authorities who have been specifically designated and authorized by the relevant government. A casino cannot legally offer any type of gambling without first obtaining this type of license, regardless of whether the games in question are skill-based or purely based on luck.
Because each regulator’s rules and requirements are constrained by local judicial laws, the casino will almost certainly be required to meet a variety of requirements, the specifics of which will vary depending on the market (or markets) that the company intends to enter. For example, businesses seeking a gambling license from the UKGC must follow a strict set of rules outlined in UK gambling law to be eligible for the license.
Casinos strive to obtain a license from the UK Gambling Commission, no matter how stringent the requirements are because doing so opens the door to an infinite number of possibilities for what they can do with their future casinos if they have the right mindset. Look at the table below, which highlights the most important facts and figures about the most prominent British regulator, to get a sense of how much demand there is for this specific license and jurisdiction:
To say the least, the impressive number of licensees is nothing short of impressive. Similarly, the benefits that come with having a gambling license are nothing short of impressive as well. Other regulatory bodies, such as the Malta Gaming Authority, are just as prestigious and well-regarded as the UK Gambling Commission (UKGC). Above all, current and prospective players will recognize that they can place their trust in the location.
A Cost Breakdown of Obtaining a Gambling License
People have many questions and concerns about the cost of obtaining a gambling license. This is a popular subject. To answer your question briefly, the cost is quite high. However, when you think about it, operators such as the best casino sites in the UK see millions of pounds pass through their digital platforms on a weekly, if not daily, basis. This is true regardless of whether you think about it or not.
If these websites want to maintain their devoted fanbase as well as vast amounts of goodwill and trust, they should gladly pay all fees, beginning with the application process and continuing through the rather expensive annual fees. Given that we’ve been using the UK Gambling Commission license as an example, it seems reasonable to calculate some of the costs associated with the entity’s remote licensing. The fees have been updated to reflect the most recent data available on the UKGC website.
The cost of obtaining a gambling license is usually proportional to the size of the casino and the volume of foot traffic it receives. Isn’t it a surprise to everyone? These figures only reflect the situation when business owners seek gambling licenses from the British jurisdiction. You can also compare the fees charged by other regulators to see if the Malta Gaming Authority’s fees, for example, are more in line with what you are willing to pay.
Gambling without a valid license has several disadvantages
We would never advise anyone to sign up with an operator that allows illegal gambling, and we would never do so ourselves. Aside from defrauding online casino players, businesses that operate in this manner cause more damage to their websites than they believe. It may be easier to believe that if you can protect yourself and avoid the laws, the road ahead will be much less difficult.
However, the benefits of obtaining a basic license from the UK Gambling Commission, for example, will be far more beneficial in the long run, not only financially but also otherwise. If you’re wondering what the most significant disadvantages of gambling without a license are, the following list should give you a good idea of some of them:
- inability to build a long-term relationship with gambling enthusiasts as customers.
- Unlicensed casinos are not permitted to sell games developed by the most reputable software developers in the industry.
- A company’s reputation will suffer if it operates dishonestly and illegally.
- Inability to establish dependable payment methods suitable for business transactions
- If you gamble without a license, you increase your chances of going bankrupt.
- In the long run, there are no genuine chances of success.
A Listing of the World’s Most Prominent Gambling License Authorities
Several prominent regulators issue gambling licenses to casino establishments, including those that operate online, in terms of options and accessibility. The best option would be determined by the markets you want to enter and the customers you want to serve, as well as the legal requirements that the casino must adhere to. It is much easier because you can choose any of them, and you can even choose more than one if you want to run an online platform.
For example, the vast majority of the most reputable online gambling sites in the United Kingdom hold multiple gambling licenses, which helps to solidify both their status and popularity. You have total authority over the decision. If you want to run a successful casino, even a single gambling license issued by a reputable regulatory body is far more advantageous than none at all. Now, let’s take a quick look at some of the world’s most well-known entities:
The Gambling Commission of the United Kingdom and Northern Ireland
The UK Gambling Commission is widely regarded as one of the most powerful and credible regulatory bodies in the field of online gambling. It has some of the strictest regulations and licensing requirements for the British market and remote operators. As a result, obtaining its approval could earn a casino extra credit for its transparency and dependability. A cursory examination of the top 20 online casinos in the UK reveals that all of them have been licensed by the UK Gambling Commission.
All of the games available at casinos approved by the UK Gambling Commission are of the highest quality and are provided by the industry’s most reputable software providers. The Gambling Act of 2005 established the regulatory body, which was tasked with monitoring anything and everything related to gambling in the country. Furthermore, it seeks to prevent minors from gambling as well as money laundering.
The Maltese Gaming Authority
The Malta Gaming Authority has been in operation for well over two decades. As the name implies, the regulator grants gambling licenses to casinos located on the island nation of Malta as well as remotely operated casinos that offer a variety of gambling products. Slot machines and sports betting are examples of such products. The Malta Gaming Authority (MGA) has its licensing tier structure, and which licensing tier you are eligible for is determined by the type of gambling you wish to offer.
MGA-regulated online casinos are extremely popular. The people who operate the remote controls are highly regarded for their dependability and safety. These establishments offer the best live dealer casino games, slots, bingo, and a variety of table games, to name a few of the entertaining options available to players. The Malta Gaming Authority prioritizes the preservation of a safe gambling environment and only issues gambling licenses to reputable gambling establishments.
Alderney Commission for Gambling Regulation
The Alderney Gambling Control Commission has been given the authority to independently regulate the gambling market in the name of the State of Alderney. It may grant remote casinos a gambling license or a certificate, but only after they have met all of the qualifying criteria, which can be quite stringent. Furthermore, the regulator has been tasked with issuing two types of gambling licenses: one for the management of casino platforms and the other for player registration and verification.
The Alderney Gambling Control Commission has one primary goal: to solidify the island’s position as a premier regulatory jurisdiction and to establish itself as an industry leader. We can confidently state that the AGCC is on the right track, owing to its serious commitment to providing players with a casino environment free of any criminal influences.
eGaming in Curacao
Like that described for the other regulators, Curaçao eGaming has been tasked with the significant responsibility of developing, administering, and regulating the framework for gambling licenses in the country of the same name. Casinos are permitted to operate any forms form of gambling due to the regulator’s issuance of a license that allows them to operate any type of gambling establishments establishment.
In addition to monitoring, Curacao eGaming double-checks the integrity of the venues, the randomness of the games, and the fairness of all interactions between businesses and customers. Last but not least, the regulatory body strongly supports responsible gambling and ensures that all financial documentation is complete and up to date.