How much does a gambling license cost?

It goes without saying that a gaming license is a necessary permission for performing gambling business online legally. But there are a lot of details a company should bear in mind when choosing a jurisdiction. The amount of license options for online casinos and sport betting nowadays is impressive due to constant industry growth. LicensingAid specialists share the most widespread ones and compare requirements for obtaining permits in this article.

For initial brief understanding of pricing policy please have a look at a few options below:

Country	Estimated license cost (USD)
Malta	$20,000 – $300,000
United Kingdom	$29,000 – $239,000
Curacao	$18,000 – $23,000

Please keep in mind that these are just a few examples. Other conditions, such as taxation system, strictness of rules, the application review period, operational fees are to be considered as well. Follow our expert guide to take a glimpse into the difference between gaming licenses options.

Highlights of the research

• There is a classification of jurisdictions depending on the regulations' strictness and market possibilities (Tier 1, Tier 2, Tier 3).
• Tier 3 jurisdictions offer the conditions most suitable for startups.
• The RNG certification and a license category influence the final gambling license price.
• To avoid fines and additional expenses, renew the license at least 6 months prior to the end of its validity.
• Anjouan provides a zero-tax system to operators performing business under its license.
• The Gibraltar license is one of the most prestigious and expensive options available in the world.
• Affiliate solutions will help you to promote your online casino faster.

What is the price of a gaming license in different countries?

Gaming license cost depends on many factors. Let’s start with a simple ranking that sorts out all jurisdictions into three categories (tiers). This categorization is based on the strictness of regulations, standards and reputation and will help you to understand how much is a gaming license in specific countries.

Tier 1

This category includes highly trusted countries. They have proved their credibility and brilliant standards through years and are generally very well developed which makes them attractive for companies promotion.

Country	Estimated license cost (USD)	Taxes
Sweden	$21,000 – $100,000	$10-35 corporate tax
United Kingdom, Malta, Germany	$25,000 – $60,000	$5-21 on gambling income
Gibraltar	~$126,000	$10-35 corporate tax

Tier 2

This group contains countries with a little less regulated gambling market. They possess high potential to young companies by being more affordable, flexible to software requirements and innovative-friendly.

Country	Estimated license cost (USD)	Taxes
Alderney	$17,500 – $50,000	Depends on the company structure
Kahnawake	$40,000	Zero gaming taxes
Isle of Man	$45,000	Depends on the company structure
Curasao	~61,700	2% on net income

Tier 3

This category includes emerging jurisdictions which are particularly suitable for companies that are just starting gambling activity and have limited funds. These countries are less economically developed and they offer softer conditions in terms of rules and regulations. The review period is quite quick too.

Country	Estimated license cost (USD)	Taxes
Anjouan	$17,000 – $20,000	No taxes
Vanuatu, Malawi	$15,000 – $20,000	0-5% gambling taxes

All the numbers given in the table are for your general awareness only. The gaming license service will be helpful here. We will provide you with more accurate information on the date of request as soon as regulations have been regularly edited and updated. Feel free to schedule a consultancy from us for turnkey solutions exactly for your company’s needs and business expectations.

What affects gambling license cost?

A license obtaining price varies from around $17,000 to $126,000 depending on particular aspects of licensing. Every jurisdiction sets its own rules and requirements. Let’s get down to more detailed explanation of pricing aspects:

1. Jurisdiction choice. Unique regulations, taxation systems and fees are the aspects to be taken into consideration when selecting a country for application.
2. License type. The structure of your company has a direct impact on which license is appropriate for your business. The gambling activities you are going to offer at the platform (if your end-customer is a gambler) play a crucial role too. In case you want to provide service to other companies, you should consider B2B licenses.
3. Application procedure. Processing and registration costs are also different in each particular case (depending on jurisdiction and your company type). You should bear in mind that the fees for application will not be refunded whether you receive a license or not.
4. Legal assistance. Considering the complexity of procedures which a company has to go through, consultancy and assistance of professionals is highly recommended. This will help you to avoid frequently made mistakes and save your time and money.

These are the main factors to be taken into consideration. No matter how long the chosen permit will last, you will also pay renewal fees regularly apart from initial gambling license cost. Please contact the LicensingAid team for more information. 

Additional costs

Talking about a license acquisition, it is important to mention some hidden aspects that may not be obvious from the start. They are the proof of a compliance with the RNG standards (certification), the AML compliance (if the company works in correspondence with the KYC and AML policies and sticks to fair play principles) and regulatory costs (including audits, security assessments, etc).

Alongside with the additional costs to the license application process, a gambling company faces such expenses as software purchases, staff training, web-site development and further upgrade, platform design, technical maintenance, security setup, marketing, and other regular operational costs.

Cost optimization possibilities

Is there a way to reduce expenses? It may not be applicable to all companies and business plans, but there is a specific approach that may work for you. You can try the following actions:

• Early license renewal. Apply for a license renewal a few (around 6) months before it expires. It gives you time to correct mistakes and submit any additional documents if needed. This way you avoid extra expenses or penalties.
• Sublicense application. Depending on your gambling activity, a sublicense may be enough. A gaming operator grants your business the permit to operate under its license. The fees for receiving it are lower than those for receiving a license. 
• Operating in partnership. You can unite with other companies and work in synergy and share expenses and responsibilities.

These are just some smart yet simple moves that may be helpful at the start. Our experts will help you to find out what suits you best. Being an independent license holder still gives you most of the benefits. Let’s proceed to the license types.

Types of Gambling Licenses

Alongside with the jurisdiction choice there is also a choice of a particular license category. It depends on your company type and gaming activities you are willing to offer at your online gambling platform. Let’s proceed to the classification:

1. B2C online gaming license. Business-to-Customer license is granted to companies which provide services to players directly. They deal with individuals (gamblers). Such businesses hold responsibility for their customers’ registration, transaction safety and AML compliance (fair play). A B2C license authorizes operators’ activity by covering all gambling types offered at the platforms of such companies (such as sport betting, online casino games, poker, lotteries, bingo, etc.).
2. B2B gambling license. Business-to-Business license is suitable for companies which interact with businesses inside the gambling industry. As an example, these could be games and other software developers and providers, online platform providers, payment processors, any kind of B2B Solutions for iGaming. Generally speaking, they provide services to licensed gaming operators. Obtaining a B2B gaming license allows companies to cooperate with various operators worldwide opening access to the gambling society. It helps to build trust and long-lasting partnership.    
3. Affiliate license. It is a special type of license, which allows affiliates to promote real-money gaming activities of licensed gambling operators to potential players. In other words, they are authorized to direct traffic to online gaming platforms. Operators thank them back with commissions for the efforts put to attract customers. For regulators this license is a guarantee that affiliates work in compliance with responsible gaming principles. 
4. Permitted solutions license. There are particular jurisdictions that grant licenses to the operators based on certain services provided. Such may be, for example, a sports betting license aimed at covering only this type of activity. So if the operator applies for a permit including this kind of gambling only, no other service is allowed to be offered on the platform.  

There are clear requirements in each jurisdiction for receiving any of the licenses mentioned above. They may change with time as soon as the regulations are being constantly updated. Our experts will help you to apply for a license type suitable for your company. 

Annual fees

The initial online gambling license cost of the license is just a step one. Operators should pay the permit maintenance fees annually. The comparison below demonstrates a huge difference in pricing between jurisdictions:

Jurisdiction	Validity	Annual fees
Malta (Malta Gaming Authority (MGA))	10 years	~$25,000 or $10,000
Anjouan	1 year	$10,000+
Vanuatu	15 years	$10,700
Malawi	1-10 years	$10,000+
United Kingdom (UK Gambling Commission), Germany	5 years	£2,027–£694,856
Curasao (Curasao eGaming)	5 years	$24,500-47,500
Isle of Man (Isle of Man Gambling Supervision Commission)	5 years	~£35,000
Gibraltar (Gibraltar Regulatory Authority)	5 years	~$85,000

We highly recommend checking current annual fees on the web-site of the jurisdictions you are interested in. The regulations go through changes regularly.

Who is required to obtain licenses

Every company or worker in the gambling industry should obtain a license. Let’s spot applicants, which submit a request most often: 

• Online casinos. For legal performance of slots, live dealer services, table games and other related activities license obtaining is a must.
• Online poker platforms. If you host poker tournaments you should get a permit.
• Lottery operators. Whether you provide an online or traditional lottery, a license is required in both cases.
• Sports betting operators. Bookmakers offering betting for sports or events are licensed too.
• Affiliate marketers. Affiliates who attract traffic to gambling platforms by promoting them also require a permit.
• Game providers. Developers of gambling activities which include money transfers are on the list.

These are just a few common examples. If you need an individual approach, trust our professionals and we will monitor the individually suitable options for you.

Requirements for Obtaining a Gambling License

The requirements for license application differ from jurisdiction to jurisdiction. There is some set list of the documents needed for obtaining a license no matter where you decide to apply for it:

1. Company registration proof. You have to go through incorporation to be present locally in the chosen country.
2. ID copies of the key persons. Passport copies with all important information must be attached.
3. The leading figures check. All the shareholders, directors, owners, etc. have to go through background checks to show reliability.
4. Police Clearance Certificates. The company’s representatives should have no criminal past.
5. Business and marketing plans. Your financial expectations and future plans must be explained.
6. Financial trustworthiness. A company’s funds are checked to ensure compatibility of handling gambling business. 
7. Games and other software documentation. The documents for the gaming activities with description, which you are going to provide on the platform are needed.
8. AML and KYC compliance. The compliance with the AML requirements and KYC regulations will be monitored.
9. Fees payment. All the services considering application for a gambling license must be paid.

For a more detailed and individual approach please appoint a consultation with our specialists. This list is given for a general understanding only. Rules and regulations may change through time.

How Can LicensingAid Help You?

We have been successfully working with operators for many years. High expertise and assistance we provide will help you to obtain a gambling license in a smooth and fast way and to operate your business without unpleasant issues. We are specializing in the following services:

1. Business incorporation. We will help you to register a company in a country you are interested in.
2. Bank and merchant accounts opening. We consult you on necessary documents and conditions to be done to receive approval.
3. Trademark registration. It is important to ensure your rights are protected and you can develop a company under a registered trademark.
4. A gambling license acquisition consultancy. We provide you with thorough market monitoring and help to make a choice which fits you best together.
5. AML compliance policies. Our team will assist you in developing anti-money laundering policies due to international requirements.
6. Corporate structure efficiency. We help you with business structuring to optimize processes and taxation. 
7. Regulatory compliance. Our ongoing support guarantees that your company operates in compliance with international laws and regulations including the freshest changes.

As you can see our services are provided on a turn-key basis. We ensure that you start and run a gambling company smoothly. Please, contact our professionals to appoint a consultancy for tailor-made solutions created especially for your business. 

Frequently Asked Questions

What is the usual license application processing period?

License application review process may take weeks or months depending on the chosen jurisdictions. The MGA and UGKC have strict background checks, so decisions are not taken fast. The review lasts for months. Curacao and Anjouan, on the other hand, will grant you licenses faster. Curacao gambling license cost is affordable. Anjouan offers a comparatively cheap solution too. Nevertheless, take into account other licensing aspects too to make a right choice for your company. 

Where to get the cheapest gambling license?

Among lots of different jurisdictions, Tier 3 jurisdictions stand out as quite affordable options. You may consider Anjouan and Vanuatu if you want a comparatively cheap solution. Both jurisdictions review applications fast. Besides, they are innovation-friendly. On the contrary, the UK gambling license cost is high, so don’t consider licenses like this if you require a cheap option.

How long will a gambling license be valid?

A gaming license's validity is different in various jurisdictions. It can last up to decades. While the Costa Rica permit (which is not officially a license) lasts for 3 months, Vanuatu gambling license is valid for 15 years. Check the actual information as far as regulations have been constantly changing.

What happens if you run a business without a license?

Unlicensed companies face lots of risks. First of all, such businesses hold responsibility for illegal activity (which is working without a permit). There could be big penalties or other legal problems. Besides, famous game developers, payment system representatives and other companies will simply reject your partnership offers if your company is unlicensed. Reputational harm cannot be ignored too.