How to choose a country to receive a gambling permit?
The gambling business is one of the most popular areas for investment. It is because it is not susceptible to economic crises and is characterized by stability in terms of profit. Therefore, many try to invest their funds to increase them further. However, you must legally receive a gambling license to run such a business. The conditions for obtaining this document vary greatly depending on your chosen country, so today, we want to give you some valuable tips on selecting the correct country to start a business.
Gambling business permitting
To launch an Internet gaming platform legally, people must receive a permit in one of the countries considered. Permitting allows you to engage in activities honestly and ensures business security. Also, such services are more attractive to gamblers who prefer to play on licensed platforms that meet specific requirements.
We will indicate who will have to undergo permitting
- the main operator of online gambling clubs, providing a platform;
- bookmakers that provide the opportunity to place sports bets on the outcome of the game and sporting events;
- gambling providers (the permit confirms the integrity of the results);
- payment providers through which financial transactions take place (deposits and withdrawals);
- other firms that are related to the gambling business.
The choice of state must be taken seriously, and all the demands imposed by local regulatory authorities must be considered. The development of a platform will largely depend on the country chosen to obtain a permit and the ability to comply with all the demands.
What to look for when choosing a state?
Each state has its own local conditions and requirements. Therefore, you must consider several countries and compare the main aspects before choosing.
Financial expenses
Any business opening is associated with financial costs: platform registration and receiving a permit. It is worth noting that their prices may vary significantly between states. Here are some examples:
- Curacao – 4500 euros;
- Kahnawake – 15,000 dollars;
- Panama – 40,000 dollars;
- Estonia – 48,000 euros.
Getting started may require costs varying tenfold depending on the chosen jurisdiction. It is also important to consider further cash costs, such as annual fees and taxation (in some countries, there is no preferential tax).
How long does it take?
The process of receiving a permit takes some time and can vary from two months to six months. Here are some examples:
- Curacao 1.5-2 months;
- Kahnawake – 2 months;
- Isle of Man – 3 months;
- Estonia – 4 months;
- Malta up to 6 months.
Also, the permitting period will be influenced by the type of license received (gaming platform, software, betting services, etc.) and compliance with all requirements by regulatory authorities.
Legislative framework and demands
To obtain a prestigious permit, you must fulfill all the necessary licensing requirements and conduct business within the law. When registering a business, you may need a physical office in the country, appropriate financial education and experience of employees in this field, technical equipment, etc. The relevant authorities will monitor all gambling activities, and if inconsistencies are detected, the license may be revoked.
Economic stability of the state
The state chosen for licensing the business must have economic and political stability. Otherwise, changes in legislation may occur periodically, which may not benefit your business. For example, increased taxation (or loss of benefits) and annual government fees can significantly reduce profits.
Advantages of permitting
Let’s list the main advantages of receiving a permit :
- business is carried out legally, and the firm meets certain requirements and standards imposed by regulatory authorities;
- many states provide preferential conditions (low or no taxes, opening accounts in other countries, etc.);
- attracting a more extensive user audience – gamblers trust only licensed platforms that inspire trust and confidence in the fairness of the games provided;
- accessibility to regulated gaming business markets, which contributes to successful development and increased profits;
- the ability to use popular payment systems;
- ensuring cooperation with prestigious game providers;
- protect your business from financial and legal risks associated with the gambling industry.
Considering all these positive aspects, having a licensed platform that allows you to expand effectively and quickly recoup your investment is always more profitable. Consider all the essential points when choosing a jurisdiction so that you encounter a minimum number of questions in licensing and conducting business.
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