Gambling Licenses

International law firm Antwort Law offers comprehensive advice on gambling licensing. In this article, we will look at what to consider when choosing and obtaining a gambling license, including license types, geographic features, taxation and fees.

Gambling licenses are necessary for legal operation in the gambling industry, they provide a legal basis for operators, protecting both the business and the players.

What types of businesses must have gambling licenses:

• Online casinos and traditional land-based casinos;
• Bet sites for various sports, eSports and other events;
• Lotteries, raffles and other games with a random outcome, both online and offline;
• Poker and bingo sites;
• Social gaming platforms offering gaming applications and social games that include gambling elements, such as virtual slots and poker;
• Fantasy sports: platforms that allow players to create virtual teams of real athletes and earn points based on their real performances;
• Slot machines and video terminals in various establishments such as bars, restaurants and shopping malls, as well as gaming clubs and arcades.

Types of gambling licenses

1. Licenses for many countries:

Curacao: one of the most popular and affordable, allowing operators to operate in most countries of the world. The tax rate for gambling operators in Curacao is 2% on net profit.
advantage: the initial cost of the license is relatively low, making it affordable for many startups;
disadvantage: less regulation may reduce the trust of customers and partners.

example: Betsson Group - the leader of the Scandinavian market and one of the largest gambling holdings in Europe from Sweden, uses a Curacao license to operate in international markets. Low initial costs and license flexibility helped the company quickly expand its operations.

Anjouan: covers a wide range of countries, providing operators with considerable flexibility. Tax rates may vary, but are generally comparable to other offshore jurisdictions.
advantage: flexibility and accessibility.
disadvantage: less credibility compared to licenses from stricter jurisdictions.

2. National licenses:

Germany: allows you to operate exclusively in Germany.
advantage: access to one of the most profitable markets in Europe.
disadvantage: a license in Germany is significantly more expensive and requires a large financial investment; high taxes on gross gambling profits; strict regulatory requirements.

United Kingdom: the UK Gambling Commission allows you to operate in the UK market.
advantage: high level of trust and recognition at the international level, strict control and protection of players;
disadvantage: high licensing and taxation costs (15% tax on gross gambling profits, significant annual fees), complex regulatory requirements.

Example: 888 Holdings is one of the world's leading bookmaking and gambling companies, operating in the UK market due to strict compliance with the UK Gambling Commission regulations.

Before obtaining a license, it is important to understand which market you want to operate in, where your players will come from, and also determine the budget for your project. This helps determine which license will be most suitable for your business. For example, if the main market is Germany, then a German license will be necessary despite its restrictions.

Each jurisdiction has its own unique requirements for license applicants. The application process usually involves the submission of a number of documents, such as:

• Business plan and marketing strategy
• Financial statements and evidence of financial stability
• Information about the owners and managers of the company
• Anti-money laundering (AML) and Know Your Customer (KYC) policies

Choosing a gambling license is a strategic decision that depends on many factors, including the market, budget, tax obligations, and regulatory environment. Antwort Law is ready to provide expert advice and support in the licensing process, ensuring compliance with all requirements and cost optimization. Contact us for professional assistance and advice on gambling licensing issues.

Lidia Ivanova

International lawyer
Antwort Law

Alina Natalushko

Lawyer
Antwort Law