If you are new to the online casino business, you may be on the lookout for effective strategies on how to start an online casino business and run it legally. For starters, it is illegal to start and operate an online gambling website that is not licensed. However, those companies which operate illegally, earn huge amounts of money legalizing sketchy gamblers. While this saves them large expenses and time, there are plenty of risks involved.
When it comes to starting an online casino business, there are many permits required depending on your place of registration. However, getting an online gambling license remains a priority. Without this, it is impossible to operate as it is required in every step of the online casino business. To get an online gaming license, it is necessary to choose countries that meet your possibilities and needs. As such, you should research the costs, requirements, taxation, application processing and government policies that control the online gambling sector. It is also important to make sure the casino software meets the requirements of the jurisdiction.
Here are some of the licenses that are essential if you are looking to start an online casino business.
Curacao Gaming license
This is one of the most efficient, quickest and cheapest gaming licenses for starting an online gambling business. In just a 6-week period, you can have your online gaming license ready and can start planning your gambling activities. People looking for a master exemption inclusive of types of games, product and software operators can benefit greatly from this gaming license.
Curacao Gaming license requires an application fee of €2,000 and a monthly support fee of €1,500. Online casino owners registered in a different jurisdiction can also gain from a 2% tax rate on corporate income and 0% on gross bets if using a special Ezone permit. If you are planning to start an online gaming and betting business, you can not go wrong with Curacao as it will help you open the online casino business as in a short period with minimal challenges. It also has a solid reputation with good levels of responsibility, trust and oversight.
Malta Gaming Authority
This is a reputable and large gambling jurisdiction which is often considered to be the gold standard of iGaming. The Malta Gaming Authority has various benefits such as affordable licensing rates, favorable tax benefits, operating in an EU jurisdiction and also easy business process with payment providers and banks. A basic online casino licensed under Malta incurs €4,660 gaming taxes for every month during the initial 6 months after which they are increased to €7,000 per month.
Compared to Curacao, the application procedure is long as casinos seeking licensing need to through five processes, including compliance audits where personal, financial, business plan and marketing information are required. The Malta Gaming Authority offers two licenses, a B2B license and a B2C license. If you are looking to start an online casino business, you should consider the B2C license as it allows you to operate an online gambling website, offer a variety of luck-based games as well as a wide range of skill games.
Panama
With the Panama gambling license, the cost of an online gambling license is $20,000 and it lasts for 7 years. If you are starting an online casino business, you will get plenty of benefits as operating online gambling activities exempt from taxes. As such, if the income source is not within Panama, you will not be subjected to any taxes, including VAT, income tax or sales tax. Although gambling dens located outside the jurisdiction also do not incur tax, they must record online game payoffs and provide records for government inspection upon request.
Montenegro
Montenegro offers gambling licenses specifically for sports betting, online casinos and poker games. It provides an easy and fast application process, with operators getting the operating online gaming license in just two days. The gambling package fee is €25.000 for the initial year and €15.000 for each successive year. Also, it does not have minimum capital requirements and offers a low tax rate of 9% corporate and personal tax rate.
If you are just starting an online casino website, the process of licensing can seem a bit complex. However, depending on the chosen gaming licensing jurisdiction, it is better to get all the requirements before starting the actual licensing process.