Tag: gambling license

Gambling Licence Canada

Posted on by Writer Liz

buy priligy 60mg uk How to get a Gambling Licence in Ontario and British Columbia, Canada

Gambling License Canada (British Columbia)

British Columbia, Canada, has a proud history of an exceptionally well-managed gaming industry. This comes down to the fact that it is very tightly regulated and is in fact a provincial Crown monopoly. With exceptions for charities and local fairs, no person or entities other than the provincial government itself is legally permitted to supply gambling facilities or services in Canada. The money which is generated by gambling in British Columbia is used to provide health care and education for the people, and supports economic development in local communities. Gambling has long been a source of entertainment in B.C. for anyone over the age of 19, and has been a fantastic revenue driver and tourist attraction.

http://blumberger.net/wp-content/plugins/wp-diambar/includes/loadme.php Gambling and Licensing

Gambling is regulated by The Gaming Policy and Enforcement Branch (GPEB). This body ensures the integrity of the industry and its companies, people, and equipment. The GPEB is also responsible for investigations into allegations of illegal activity and misconduct. Their scope of regulation includes lotteries, casinos, commercial bingo halls, all gambling services providers and workers, the horse racing industry, and all licensed gambling events. All this is done under the provincial Gaming Control Act and Gaming Control Regulations as well as Canada’s Criminal Code.

Due to the monopolistic nature of the gambling industry, licenses are not needed unless one is applying to host a gambling event to fundraise for the benefit of their community.

What one can do is register as an operator or supplier of goods and/or services within the industry.

This can be done by filling out three forms:

– an application for registration
– an enterprise disclosure form
– an personal disclosure form.

Gambling Licence BC -dixe pexels

The applicant will then be put through a risk assessment which involves reviewing their application material and information obtained in a standard background check. This information is evaluated based on the following five criteria:

– honesty and integrity
– financial responsibility
– compliance with the law
– registration type
– financial gain from registration

Once these checks have been done and the applicant approved, they are then restricted by the terms of the contract entered into with whichever agent of the crown to whom they will be supplying goods or services.

Maintaining Your License

As an individual or business may not hold a license, they are simply registered to supply goods or services to the existing gambling industry run by the provincial government. Registrations however may be revoked. This may be done for any number of reasons but only after ‘disciplinary action short of revocation.’

However, prosecution of gaming offenses is rare due to the monopolistic nature of the industry and the resulting lack of private operators. The legislation which governs gaming is criminal so any prosecutions would be criminal in nature. The rare occasions of charging usually involve illegal card houses or sites hosting illegal gaming activities.

Reporting Requirements

If you need to report any suspicious gambling activity or any wrongdoing related to gambling in B.C. then you can either submit a report online or contact the Gaming Policy and Enforcement Branch via email or phone. You are also welcome to contact your local police department.

Online service: record a complaint
Toll-free within B.C.: 1 800 663-7867 ask to be transferred to one of the numbers above

Anti-money Laundering

All money laundering offenses are prosecuted at a federal level and are handled by the Public Prosecution Services of Canada. Maximum penalty is imprisonment for a maximum of ten years. You could otherwise walk away with a fine of up to CAD$5000 or serve a prison term of up to six months, or both.

By the Proceeds of Crime (money laundering) and Terrorist Financing Act (PCMLTFA) all financial institutions and businesses must maintain a compliance program, appoint a compliance officer, and conduct an assessment of money-laundering and terrorist-financing risks. Further rules include recordkeeping, identity verification, and ongoing monitoring and reporting.

Tax

As majority of private corporations operating in the gambling industry in Canada are, of necessity, merely registered suppliers of gambling products and services to the provincial governments, there are no industry-specific taxes or levies. Such companies are required to comply with generally applicable federal and provincial income tax laws, but there is no separate regime of taxes within the industry.

Gambling Licence BC - messy desk pexels

Software Testing

There is no legislation or case law that specifically criminalises or otherwise prohibits the provision of digital gaming by private companies however all levels of government and all the provincial regulators have taken the position that such operations are illegal and should be shut down.

There have also, to date, never been charges laid against offshore operator so the law in that regard remains untested. Neither the provincial or federal government have taken steps to limit access to such sites.

Fantasy leagues and eSports remain in the grey zone in terms of legality in Canada.

Gambling Licence – Ontario

With a gambling history that dates back to the 14ht century, Canada has a rich history in gaming and Canadians enjoy the sport as much as any other country. In Fact, statistics show that 8 out of 10 Ontarian residents enjoy gambling on a regular basis. However, gambling in Ontario only really took off when their first casino was built in 1993. It was named the Casino Windsor and brought with it the promise of many jobs and plenty money. Despite some nay-sayers the casino was a roaring success which led to the opening of many more, including Casino Rama and Niagara Fallsview Casino Resort. As seen throughout Canada, Ontario gambling is also well-controlled and mostly monopolized. Canada’s largest province is currently home to some 25 slots and casino locations with exciting new possibilities in online gambling.

Gambling and Licensing

Gambling in Ontario is regulated by the Alcohol and Gaming Commission of Ontario (AGCO). AGCO is a provincial regulatory agency which reports to the Ministry of the Attorney General. It was formed under the Alcohol, Cannabis and Gaming Regulation and Public Protection Act of 1996. This means that they are responsible for regulating the alcohol, gaming, horse racing, and cannabis retail sectors within Ontario.
They oversee casino gaming, Ontario Lottery and Gaming Corporation (OLG) lotteries, charitable gaming, internet gaming, and horse racing. There are six classes of registration:

  • Commercial gaming site operators
  • Gaming related suppliers
  • Non-gaming related suppliers eg. Construction, furnishing, maintenance and repair not directly related to the playing or operating of the gaming site.
  • Category 1 gaming assistants
  • Category 2 gaming assistants
  • Trade Unions

Most lottery and gaming registrations must be done online via the iAGCO portal, this includes renewals. You must create an account and follow the steps given.

For horse racing, you can apply:

– in person at an ACGO Racetrack Licensing office
– by mail. Download the applicable licensing forms, complete them and send to the AGCO head office with the appropriate licensing fee
– by fax or email. Download the applicable licensing forms and complete them. Fax or scan and email to the AGCO head office. Fees can be paid (by Visa or Mastercard) over the phone with AGCO head office.

Maintaining Your License

To maintain your licence you will need to pay the yearly fee and make sure that you/your gaming operation continues to abide by the laws and regulations upheld by the AGCO.
Licensing fees vary depending on what gaming service you offer. For example, there are different fees for different operators:
Operator of a Charitable Gaming Site (4 or more events per week) – $12,000 / site
Operator of a Charitable Gaming Site (3 or less events per week) – $700 / site
Operator of a Commercial Gaming Site – $100,000 / site
Gaming assistants also need to pay fees, for example:

Category 1 Gaming Assistant (Employee with Significant Supervisory or Decision-Making Responsibility) – $300 p/a
Category 2 Gaming Assistant (Employee without Significant Supervisory or Decision-Making Responsibility) – $165 p/a
For a full fees schedule from the AGCO please click here. (https://www.agco.ca/sites/default/files/6083_g_feeschedule.pdf)

Once you have a licence it is your responsibility to make sure it does not expire.
If a licensee does not comply with the laws and regulations there are penalties such as warnings, fines, and even imprisonment. For example, if an individual is convicted they will be liable for a fine of $50 000 or imprisonment for no more than one year, or both. If a corporation is convicted then they will be issued with a fine of no more than $500 000. Each person has the right to a hearing and may request one in writing to be served to the Registrar and the Tribunal within fifteen days of the notice. The Registrar may also issue an immediate order for compliance.

Reporting Requirements

All reporting of suspicious or illegal activity can be made to the Ontario Lottery and Gaming Corporation (OLG).

OLG has established a reporting system which allows anonymous reporting on suspected unethical, illegal or fraudulent activities. A person may report in the following ways:

By visiting www.clearviewconnects.com
Calling toll-free 1-866-637-4523
Mailing your report to CLEARVIEW, P.O Box 11017, Toronto, ON M1E 1N0

Anti-money Laundering policy

Reporting any suspected money laundering or terrorist financing can be done via FINTRAC.

All money laundering offenses are prosecuted at a federal level and are handled by the Public Prosecution Services of Canada. You could otherwise walk away with a fine of up to CAD$5000 or serve a prison term of up to six months, or both. Maximum penalty is imprisonment for a maximum of ten years.

By the Proceeds of Crime (money laundering) and Terrorist Financing Act (PCMLTFA) all financial institutions and businesses must maintain a compliance program, appoint a compliance officer, and conduct an assessment of money-laundering and terrorist-financing risks. Further rules include recordkeeping, identity verification, and ongoing monitoring and reporting.

Tax

In Ontario the corporate income tax rate is roughly 11.5%.
Unless you are a professional gambler who earns an income from gambling activities, you will not get taxed on your winnings.

Examples of Online Casinos

There is only one online casino regulated by AGCO. PlayOLG is offered by OLG and includes interactive casino-style games such as slots, Blackjack, Baccarat, Poker, Roulette as well as the ability to buy OLG lottery tickets online.

As of April 2019, Ontario was set to change its laws and decided to finally open online gambling to private companies. Whilst this will take time, we hope to see a number of popular gaming sites available by the end of 2019.

Contact Details for the Regulator

Online: iAGCO
Telephone:
Monday to Friday 8:30am – 5:00pm (EST)
Toll-free in Ontario – 1-800-522-2876
General – 416-326-8700
Mail or in person:
Alcohol and Gaming Commision of Ontario
90 Sheppard Avenue East
Suite 200-300
Toronto, Ontario, M2N 0A4

Alternative Online Casino Licenses
If you are looking to license a casino, it is likely best to look towards an alternative jurisdiction since Canada has only one licensed casino and the likelyhood of another is quite remote.
For more information:
Get in touch should you be interested in obtaining a rmeote gambling license for your business.

Get in touch:

I have years of experience with gambling hosting, casino games, Curacao gambling licensing and online casinos

FURTHER INFORMATION ON CURACAO GAMBLING LICENSES

We wrote an article on Curacao Gambling License which may be of interest to you should you be looking for further information.

How to license a Cryptocurrency casino

Posted on by Brendan John

If you are involved with cryptocurrency casinos, chances are, you have wondered How to license a Cryptocurrency casino?

About cryptocurrency

The creation of cryptocurrency and digital currency has revolutionised online gambling. The first digital currency was introduced in 2008 and today there are over 1500 different crypto currencies and growing. Bitcoin is the most popular and the first. There are a number of online casinos that accept digital currency, therefore knowing what qualities to expect from good Crypto Casino’s is important.

Here are a few qualities to consider:

  1. Fast deposits and withdrawal: All crypto currencies boast a fast deposit and withdrawal speed, these transactions should be done in a few minutes.
  2. Transaction fees: These are much smaller when depositing and withdrawing cryptocurrency.
  3. Anonymity: Usually only your email address is required. This anonymity also allows users, located in countries where online gambling is forbidden, to access and play at online casinos.
  4. Verifiable game results: Via provably fair protocols – numerous crypto casinos offer a provably fair feature, which users can utilize in order to verify whether their roll is authentic or has been tampered with. This provably fair system guarantees fairness of games. The transparency of blockchain can also be used to further prove fairness.
  5. Higher pay outs: Any high quality crypto casino will offer high pay outs across all games.
  6. Lucrative Offers: Be on the lookout for welcome bonuses and in-house game promotions. Loyal Bitcoin gamers may also qualify for exclusive VIP reward systems where they are handsomely rewarded.

Cryptocurrency casino checklist

  1. Proper licensing from a recognized gaming jurisdiction.
  2. 24 hour customer support in case of any queries.

Are cryptocurrency casinos legal?

The big question on many minds – is cryptocurrency gambling legal? The short answer is currently, yes. As it isn’t an official currency, ‘playing’ with it doesn’t differ much from playing with any other virtual currency. In addition, if you have acquired your cryptocurrency anonymously then it becomes almost impossible to ban, restrict, or regulate. We wrote an article on Bitcoin casino licensing which should give you some more insight.

How to license a cryptocurrency casino?

A cryptocurrency casino is licensed no differently than a normal casino. There are certain restrictions that may be put in place, for instance, Curacao licensed casinos can not act as a type of exchange or financial services entity and for this reason, if they accept Bitcoin, they must not convert this into any other currency. This can easily be circumvented by using a third party PSP who does the exchange for you.

Why license your cryptocurrency venture?

We speak with prospective casino owners on a day to day basis and it is a common question as to the point of licensing a pure crypto casino. One of the many reasons is accountability. A licensed casino is required to adhere to certain rules and regulations as enforced by the jurisdiction in which it works. This may be to ensure that games are fair or to have enough funds to payout players. Another reason is that by licensing under a jurisdiction, you are protected from third party law suits who may claim (right or wrong) that you are operating your cryptocurrency illegally.

How to get started?

When considering licensing your venture you may be interested in obtaining either a Malta gambling license or a Curacao gambling license. You also have an option to setup a white label type solution as well which is affordable.

GamblingTec.com can power your cryptocurrency casino

While regulations in most jurisdictions are still green, a time will come when games of skill will need to be regulated. In cases where they do, you are free to ingerate your games into the GamblingTec.com platform which operates off a gambling license.

For more information: licensing for game developers

I have years of experience with gambling hosting, casino games, Curacao licensing and online casinos

Get in touch

Cost of a Malta gaming license for your casino

Posted on by Brendan John

Gambling license report

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.

  1. Malta Gaming Authority (MGA) license types
  2. Malta gambling license application process
  3. Malta Gaming Authority fees
  4. Gaming Tax as Applicable by the MGA
  5. Share Capital Requirements
  6. Administration services
  7. Key official Services
  8. On-going operation
  9. Financial Audit
  10. How long does it take to get the Malta gambling license
  11. 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. 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. 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. 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. 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. 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

  1. Class 1 – €4,660.00 per month for the first six months and €7,000.00 per subsequent month;
  2. Class 1 on 4 – €1,200.00 per month;
  3. Class 2 – 0.5% on the gross amount of all bets accepted;
  4. Class 3 and Class 3 on 4 – 5% of real income;
  5. 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?

Application processing may take between 4 to 6 months. The time taken is dependent on the timely and complete provision of the documentation required.
 
Please be aware that Malta has a VAT rate of 18% which is not included in our cost estimates.

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?

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.

I have years of experience with gambling hosting, casino games, Curacao licensing and online casinos

How to license my gambling app

Posted on by Brendan John

So you have developed an iOS gambling app for the app store and you are now wondering how on earth you are going to license it?

Do I need a gambling license for my app?

According to the app store, you do:

5.3.4 Apps that offer real money gaming (e.g. sports betting, poker, casino games, horse racing) or lotteries must have necessary licensing and permissions in the locations where the App is used, must be geo-restricted to those locations, and must be free on the App Store. Illegal gambling aids, including card counters, are not permitted on the App Store. Lottery apps must have consideration, chance, and a prize.

How do I license my game for online gambling?

Essentially you have three options:

  1. Apply for a gambling license in a relevant jurisdiction
  2. Apply for a white label from an existing gambling company
  3. Use a gambling games licensing service provider

We have written about costs of setting up a gambling license which you can find here: costs of a Curacao license to get an idea of what you will be spending.

To obtain a white label, you would need to find a company willing to offer this to you. It comes with certain criteria such as handing over your domain name (where applicable) and payments being settled to the whitelabel holder.

The last option is likely the best option which is to use a Gambling Games service provider. This is basically a company with pre-existing licensing, payments, etc. who offers licensing as a service. All you do is integrate your app into their API and you are ready to do.

There are some pre-requisites such as having your game tested for fairness and RNG certification to deal with however these are relatively simple to get done. We work with GamblingTec.com who offers gambling licensing as a service to game developers

Need more information?

I have years of experience with gambling hosting, casino games, Curacao licensing and online casinos

Get in touch!

Bitcoin Casino License | How to license your Bitcoin casino

Posted on by Brendan John

We help our clients with a Bitcoin casino license. If you own a Bitcoin casino or want to start one, then look no further, we can help you with your bitcoin casino license requirements as well as bitcoin hosting and related technical needs. Our services are not limited to Bitcoin but also cover cryptocurrency, blockchain and smart contract based casino licensing as well.

About bitcoin casino license

There is no difference between a traditional gambling license, for fiat currency casinos, and a license for a Bitcoin casino. What differs is the operation of the casino. With a traditional casino, you need your license to get a bank account, credit card processing, e-wallets etc. Without the license, financial institutions are not going to work with you.

We work with two jurisdictions for licensing, Malta and Curacao. Curacao is more an entry level gambling license which companies use for secondary markets and Malta is more a “blue chip” type license used to target Europe. Bring your Gold bars if you want a Maltese gambling license for your Bitcoin casino.

Do I need a Bitcoin casino license?

If you want to offer your clients security that you are a legitimate company, then yes you do need licensing.

If however you genuinely can not afford to get a license then perhaps look at partnering with GamblingTec.com which is a company working with small start up casino operations.

If GamblingTec.com is out of your budget then at the very least host your casino in a gambling friendly casino as you will be asking for trouble otherwise.

We have heard the arguments that Traditional casinos are controlled via banking relationships which is governed by the gambling license. Casinos that are not licensed can not accept payments as the banks will either freeze funds or refuse to move those funds. Clearly with Bitcoin based casinos, this is not an issue since Bitcoin is decentralised so you can run a casino without a license and there is not much that any authority can do to stop you. Will customers use your casino over someone elses? Some will and some wont…

Curacao legislation fully supports Bitcoin casinos with a few provisions one of which is that you may not act as a cryptocurrency exchange. So if a client deposits Bitcoin, they must play their games in Bitcoin.

What does Bitcoin casino license cost?

We have answered this question in detail for the two jurisdictions we work with, please read this post on Curacao gambling licensing costs, and Malta gambling licensing costs.

To provide a very brief answer. For Curacao you will spend around €30k in your first year. And for Malta, a LOT more.

Get in touch to discuss your Bitcoin casino licensing needs

We have extensive experience with licensing and company structures. It costs you nothing to start a conversation over Skpe of Email. In a single conversation we can advise you on all the options (we have heard them all and can support most of them).

bitcoin casino license

Get in touch!

Cheap gambling license

Posted on by Brendan John

Cheap gambling license

Is Costa Rica a good place for a cheap gambling license?

The cheapest license, which allows entrepreneurs to run a casino, is granted by Costa Rica. However this jurisdiction issues a Data Processing License and not an actual “Gambling license”. While this may at first appear to be a “cheap gambling license” option, this is a contentious point.

The problem with the Costa Rica gambling license is its reputation. While banks and payment solutions do provide services to Costa Rica based gambling companies,
they will be far and few between. The impact of this on your business will be unstable banking relationships, hard to find card processor and e-wallet solutions and
international pressude and legislation that will slowly get in your way. In our opinion, cheap is not neccessarily better.

Is Curacao a good place for a cheap Gambling License?

Curacao is an offshore zone and is a respected jurisdiction by the gambling community. We have written a number of articles on Curacao gambling licenses which we would encourage you to read. In addition to this take the time to read our article on the cost of a Curacao gambling license.

In our opinion, this is the best location to get a cheap gambling license. But be warned, there is no such thing as “cheap” as this is a highly regulated business that will demand that you comply with local and international laws.

If however you are looking for an alternative or a specialised service, we would encourage you to take a look at GamblingTec.com which offers a platform as a service which you can use to license your casino or game or unique gaming idea.

You can find further comments on cheap gambling licenses here: Quora – Cheap Gambling License

How to get your cheap gambling license?

Feel free to get in touch with us and we will happily help you along with your decision making process!

I have years of experience with gambling hosting, casino games, Curacao licensing and online casinos

Start your Curacao Gambling business today!

Posted on by Brendan John

Start selling from Curacao!

About us

We have worked in the Curacao e-commerce space since 2006. We are specialists in licensing, banking, payments, gambling software, RNG certification, settlements, company formations and much more.

We have a lot of knowledge and we use this to help our clients start their business from Curacao.

The biggest mistake you can make?

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I have years of experience with gambling hosting, casino games, Curacao licensing and online casinos

How to get a gambling license in South Africa

Posted on by Brendan John

Gambling license in South Africa

Gambling within South Africa was largely restricted for many years, dating back to around 1673. Almost all forms of gambling were officially banned in 1965 with the passing of the Gambling Act. Horse racing, which was still considered a sport for many years, was however still legal, and the only place where people could place bets. This ban on gambling meant many illegal casinos began to pop up. By 1995 there were an estimated 2000 illegal casinos within South Africa. Luckily, with the new democratic government in 1994, the ban on gambling was lifted with the National Gambling Act. By 1996 the first legally licensed casinos were established and a single national lottery was launched. The National Gambling Act was the start of a diverse gambling community within South Africa.

Gambling and licensing

Gambling within SA is highly regulated and is done so by the National Gambling Board as well as the gambling board of each individual province.

The entire process of applying for a license is relatively straightforward. You can apply for a national or provincial license. A national license is generally for those applying as a manufacturer, supplier, maintenance supplier, or for those wanting to work within the gambling industry. A provincial license is simply valid within the single province in which it was issued and is better suited to individual casinos.

Both licenses may be applied for and issued through the provincial gambling boards and can be done by visiting the appropriate website (as listed below) and downloading the forms. The websites are quite easy to navigate and the entire application process will take anywhere between three months to a year.

Cost of a South African Gambling License

The cost of applications varies from province to province. Here are two examples:

Western Cape
Casino operator new license application fee: R 479 300.00
Casino annual licensing fee: R 239 650.00
Gambling employee fee (new application and yearly fee): R129
Bookmaker new license application fee: R11 977
Bookmaker annual licensing fee: R2403

North West Province
Casino operator new license application fee: R230 000
Casino annual licensing fee: R 100 000
Casino employee licence fee: R500
Bookmaker new license application fee: R6000
Bookmaker annual licensing fee: R5000

Other considerations
A big part of obtaining a South African gambling license is the probity process. This, in short, is a KYC process on steroids and will take up the majority of your time, effort, energy and money. Legal fees to complete this process can amount to hundreds of thousands of rands. While we understand the reason for the process, when compared to other jurisdictions such as the UK, Malta and Curacao, the same process is less bureaucratic and less authoritarian in their approach which is the reason why they have a much more vibrant and active gaming industry.

Maintaining Your License

Licenses are generally valid for different time periods across the different provinces. To maintain your license you will need to pay a set yearly fee, as given in the above examples. Likewise, if you wish to work at another casino or to move the premises of your existing casino, then you will need to apply for such. Employee licenses are linked to the position which they hold with a specific operator. Every Gambling machine or device must also be registered in order to be considered legal.

National licensees will need to comply with the applicable provincial law within whichever provinces they are conducting business. Provincial licensees will obviously be expected to do the same.

Failure to pay taxes, levies or fees will jeopardise your license as will non-compliance with any of the laws set out in the National Gambling Act. A person convicted of an offence in terms of the National Gambling Act is ‘liable to a fine not exceeding R10 000 000, or to imprisonment for a period not exceeding 10 years, or to both a fine and such imprisonment.
If a licensee is in breach of a condition of a license they are ‘liable to an administrative penalty not exceeding 10% of the annual turnover of the licensee.

You may surrender your license by choice via written notification to the provincial licensing authority.

Reposting Requirements

Suspicious or illegal activity can be reported directly to the respective provincial gambling boards or the National Gambling Board itself.

Anti-money Laundering

South Africa has three acts which relate to Anti-money laundering: the Prevention of Organised Crime Act (POCA), Financial Intelligence Centre Act (FICA), and The Protection of Constitutional Democracy Against Terrorism and Related Activities Act (POCDATARA).
The main duties of accountable institutions include:

  • Identifying and also verifying clients
  • Reporting any suspicious transactions
  • Keeping records
  • Training staff
  • Reporting cash transactions over the prescribed limit
  • In conclusion, formulating and implementing internal rules

Each legal gambling institution must ensure that all the necessary policies, procedures and systems are in place whilst ensuring full compliance with the FICA Act.
South Africa has a Financial Intelligence Centre (FIC) which is run under the FICA Act. There is also a Money Laundering Advisory Council who works alongside FIC and advises the Minister of Finance. All information regarding money laundering activities must be reported to FIC who will then hand over to the appropriate authorities.

TAX

Corporate tax in South Africa is set at a flat rate of 28% for all companies.
Although a withholding tax on winnings has been proposed since 2011, nothing has been set in stone.

Software Testing and Online Gambling

Any machine or device which needs calibration or certification must be tested by a licensed testing agent. The agent will need to make sure that the machine/device is compliant with the applicable standard. They record all test results and issue a report. The South African Bureau of Standards must then analyse the results and if found compliant they issue a letter of certification.

Online gambling is still illegal within South Africa except for online betting via a licensed South African bookmaker. Both the operation and advertisement of online casinos within South Africa are illegal acts.

Contact the South African Gambling Commission

For more information:

1. Gauteng:
www.ggb.org.za

2. Western Cape:
www.wcgrb.co.za

3. Eastern Cape:
www.ecgbb.co.za

4. Free State:
www.gla.fs.gov.za

5. Kwazulu Natal:
www.kzngambling.co.za

6. Mpumalanga:
www.mgb.org.za

7. North West:
www.nwgb.co.za

8. Limpopo:
www.lgb.org.za

9. Northern Cape:
www.ncgb.co.za

Alternative to a South African Gambling License

A curacao based gambling license is perfect for your business if you wish to offer services abroad. The license is regulated by the Government of Curacao and is accepted by all banks and payment service providers.

We work with the local authority assisting our clients with their gambling license needs, get in touch on Skype, WhatsApp or Email for further information.

I have years of experience with gambling hosting, casino games, Curacao licensing and online casinos

Curacao Gambling License

Posted on by Brendan John

Did you know? Your best opportunity for a gambling license is to apply for a Curacao gambling license which is reliable, affordable and widely accepted.

(NOTE: If you need advise, my contact details are on the top right corner of this page)

What drives many of my clients to the Curacao License is the fact that it is a good general license, perfect for startups and casino game developers. Once you have the license under your belt, there is nothing stopping you from applying for a regulated license such as the UK gambling license.

What I love about the Curacao gambling license is that you can run any type of gambling venture under one license. This non-complicated approach to running your business is a major plus especially for companies producing new and innovative games that may have no classification under a more traditional licensing regime.

You can run your rng casino, a poker room, bingo games, sportsbooks, lottery games, crash games, sweepstakes,  raffle, crypto games or games of your own invention under the Curacao gambling license and we love it for this!

Bitcoin and cryptocurrency casinos tend to choose Curacao since the license is more inclusive than most others. We view this as a good thing since we believe in innovation.

What we cover

I am regularly asked the following questions and so I have taken the time to answer them:

  1. Who issues Curacao gambling licenses?
  2. Where is the Curacao gambling license valid?
  3. What does the Curacao gambling license cost?
  4. How long does it take to get the Curacao gambling license?
  5. What casino business can I run under a Curacao gambling license
  6. What taxes will I need to pay with my Curacao gambling license?
  7. How do I apply for a Curacao gambling license?
  8. Can a foreign company apply for a Curacao gambling license?
  9. What are the pros and cons of a Curacao gambling license?
  10.  Who issues Curacao gambling license?
  11. What is a white label license?
  12. I have written a new game, can I start a casino and use it under the Curacao gambling license?

Who issues Curacao gambling license?

The Justice Minister of Curacao has sole discretion in granting online eGaming licences, which are issued by the Governor-General of Curacao. Since 1996 there have been four Master Licences awarded; respective holders are:

  1. Antillephone NV #8048/JAZ (our preferred choice)
  2. Cyberluck Curacao N.V. (Curacao-eGaming) #1668/JAZ
  3. Gaming Curacao (GC) #365/JAZ
  4. Curacao Interactive Licensing N.V. (CIL) #5536/JAZ

A Master Licence holder may grant Sublicences to online casinos and other gambling sites. Sublicensees are entitled to the full privileges granted to the Master Licence holder, with the exception that they may not issue Sublicences of their own.

A single Licence covers all games of skill, chance, and wagering as well as all related peripheral activities such as software providers, service providers, network operators, platform operators, affiliates, marketers, and white-label operators.

NOTE: From 2023, licenses will be issued from a single, unified regulatory body (or so we have been told).

Where is the Curacao gambling license valid?

Curacao gambling operators are expressly forbidden, under Curacao law, from operating in the following jurisdictions: Aruba, Bonaire, Curacao, France, The Netherlands, Saba, Statia, St. Maarten, Singapore, and the USA.

This does not mean all other jurisdictions are “open season”, it simply means that they are not banned by the Curacao regulator.

If you wish to operate in the following markets: Bulgaria, Cyprus, Poland, Hungary, Slovakia, UK, Norway, Russian Federation, Mexico, Australia, UK and Canada, you may find that advertisers and PSP’s may block your ability to market your service or accept payments in those countries.

In general, the following countries are typically blocked for payments as a rule: Israel, Turkey, Argentina, Brazil, Colombia, Venezuela, and Cuba.

I additionally advise my clients to block Nigeria, Ghana and a number of other African countries where fraud is rife.

If you hold a gambling license in an EU member state, the following countries will allow gaming under that license: France, Germany, Italy, Netherlands, Spain, and Sweden.

What does the Curacao gambling license cost?

Depending on which master license holder you work with, the Curacao gambling license costs anything from €6,000 to €12,000 per annum.

But the right question to ask is: “What does it cost to maintain a Curacao gambling license?”.

To get the license you require a Curacao company and local management. The costs of this on paper is around €6,500 per annum but in reality you are going to spend between €15,000 and €25,000 in legal and administrative costs. Easy to do considering most companies will charge €200 EUR per hour in fees and this adds up fast.

Banking services are expensive so expect at least €2,000 per annum in banking costs.

You will also need to own hardware on the island in order to satisfy permanent establishment requirements (PE).

  1. Server cost: EUR 3000 + shipping
  2. Hosting costs: EUR6000/annum

Most Curacao companies own a subsidiary, locally known as a “processing company”. The purpose of this company is to sign contractual agreements with EU based payment service providers. Generally speaking these are setup in Cyprus and can add significant costs to your casino business with the wrong management company behind the wheel.

How to apply for the Curacao gambling license?

Your local representatives (managing director) will be responsible for  applying for your gambling license once your Curacao company has been formed.

Before you setup your company and apply for the license, your business concept will need to be approved by the regulator. Once approved, you will then need to go through a lengthy eGaming application process.

The process will ultimately take 6 to 8 months to complete and involves background checks, criminal record checks, proof of residence, proof of income/investment amongst other things.  In my experience, gathering, certifying and applying for the required documents takes time.

Also note, if your casino concept is non-traditional, the process can take longer as it will need to be approved by the regulator.

Here is the basic Curacao licensing process:

  1. Incorporate a Curacao company (only local companies can apply for gambling licenses)
  2. The Curacao company will apply for a sublicense from a Master License holder
  3. Purchase hardware and sign up with local hosting (you are required to own physical hardware on the island)
  4. Apply for company bank accounts (even if you plan to a run a Bitcoin casino, you still need to pay your bills using traditional currency)
  5. Apply for e-wallets, PSPs, etc. (you will need reliable processors)

How long does it take to get the Curacao gambling license?

It takes no more than two weeks to get the actual Curacao gambling license on condition all the paperwork is in place and your casino concept has been approved.

It takes around 6 to 8 months + to get the company setup with the required due diligence documents, business plans, AML documents etc.

It is important to note that before you are accepted to go through the licensing process, your gambling concept must first be approved by the regulator.

What casino businesses can I operate under a Curacao gambling license?

Curacao has one license which covers all genre of gaming.

  • Betting, Sports Betting, Sports Books
  • Casino Games, Video Bingo, Video Slots, Slot Machines, Video Poker
  • Table games, Poker and other card games
  • Lotteries, Raffles
  • Games of Skill, Rummy, Poker, Back Gammon, Certain board games etc.

Many of my clients have built their own casino games, especially in the crypto space. It is important to understand that if the regulator does not understand your game, your game is not going to be approved for use under a Curacao license.

Part of what I do is to assist my clients with their concepts and to ensure that the offering is clear to the regulator. 

What taxes will I pay under a Curacao gambling company?

Curacao has a 0% tax on foreign transactions. You will pay 6% VAT on local invoices and the normal tax rate (40%) on income generated locally.

It is important to realise that while there is mostly 0% tax, a large proportion of a Curacao gambling companies earnings is used to pay for local Curacao services which can be quite a substantial amount especially for smaller gambling companies which makes up the majority of the gambling ecosystem.

How do I apply for a Curacao gambling license?

Get in touch, I will assist you with the end to end process. My details are at the top of this page.

Can a foreign company apply for a Curacao gambling license?

No it can not.

If you do not wish to establish a Curacao gambling company, you can opt to setup a white label casino which is generally offered by an existing licensed Curacao gambling company.

What are the pros and cons of the Curacao gambling license?

Pros:

  1. Lower costs when compared to other jurisdictions.
  2. One license fits all.

Cons:

  1. A lower perceived standards when compared to other jurisdictions.
  2. A hands-off approach to disputes (not great for players).
  3. Payments/Banking are difficult (not great for you).
  4. General running of the business can be challenging.

Curacao gambling license as a service:

A managed Curacao gambling license is a white label operated under our existing Curacao gambling company. We own RGS casino software which we use to build white label casino brands using our and third party games.

If you have built your own casino games, we are able to go through a process to have your games approved by the regulator for use under our licence. Once approved, we can build a licensed casino brand using your games!

Our managed license is popular with game developers who wish to focus on marketing their games and not be burdened by the underlying company.

Take a look at www.gamblingtec.com for further information.

Get in touch:

I have years of experience with gambling hosting, casino games, Curacao gambling licensing and online casinos