Applying for an online casino or sportsbook license is not simple, there’s no guarantee that the license will eventually be granted. Even a tiny mistake with the application can disrupt the entire process and send the applicant back to square one. Moreover, you must be very careful about complying with the laws of your licensing jurisdiction: learn it carefully to avoid confusion. For example, in some locations, the legal gambling age is 18 years, in others — 21 years old. It’s easy to make a mistake, but violating the prohibition against underage gambling can easily result in your license being revoked or a new one being denied.
Let’s figure out what exactly can become a fatal mistake leading to a refusal to issue a license, as well as what kind of criminal history makes it impossible to obtain a permit.
What can prevent you from getting a gaming license?
Each jurisdiction establishes its own licensing process, which is usually quite complex and bureaucratic. The authorities will carefully check the complete package of documents to make sure they’re completed fully and accurately. In almost all jurisdictions, authorities’ checklist will include:
- Due diligence сheck
- Verification of key business stakeholders
- Verification of information about the legal entity
- Criminal history check (for applicants, directors, and other key persons, who work in a casino)
- Verification of RNG certificates
- Bank account checks (in some countries operators must provide letters of good standing from the bank, in others — just usual bank statements)
If the applicant fails one of the conditions, the gaming commission usually denies a license.
Gaming license disqualifications can also result from money laundering, illegitimate operation, or anything else that goes against the rules of the jurisdiction. The authorities are especially careful to protect minors from the harmful effects of gambling. So, in different countries, it is forbidden to play in online casinos until 18 or 21 years old. Here is the list of the most widespread violations:
- Violation of technical standards
- Inadequate protection of customer funds
- Violation of AML regulations
- Violation of digital advertising rules
- Violations of regulations on the protection of vulnerable persons
- Violation of the rule prohibiting gambling for minors. In most countries, the legal gaming age is 18 or 21 years
Gaming license background check
The gambling commission will check a lot of personal information when an operator applies for an online casino license. The list will vary from jurisdiction to jurisdiction. Regardless of jurisdiction, the name, age, and address of registration must be checked. Sometimes they might also check your past employment, as well as investigate and verify the background of shareholders and key persons. Due diligence checks can be very thorough, sometimes including background checks conducted through international law enforcement agencies. Such investigations are carried out not only in relation to the applicant or business owner but also to other people, who work in a casino. Often there is also a business plan review after the application has cleared the fit and proper check.
Credit check for a gaming license
Regardless of the jurisdiction where you are going to obtain a gaming license, you and your company are required to undergo a money check. Usually, operators provide bank statements or letters of good standing from the bank, but in some regions, you may be required to supply capital reserves to be held in trust by the regulator. This is to protect players from fraudulent actions on your part.
For example, in Belize, one of the requirements is to have a deposit of $500,000, which the commission will hold in trust as a guarantee against fraud and other irregularities. This fee is worth considering when planning for the cost of the initial application. Recently, all jurisdictions have been very careful about the financial issue. As an example, the Gaming Control Board in Curaçao has become an anti-money laundering and counter-terrorist financing body, while online gambling itself is regulated by the Ministry of Finance and the Financial Intelligence Unit.
Criminal history check
What can prevent you from getting a gaming license besides mistakes in documents or failing identity or financial verification? In addition, each licensee undergoes a criminal history check. You may have some troubles if you have some restrictions due to your background: those who have been convicted of financial crimes or have a history of any other offenses are likely ineligible for a license. As an example, in Brazil, operators applying for a gaming license will have to prove that they have no criminal, financial, civil, or administrative offenses. On the other hand, in the US traffic infraction (especially if it is a one-time violation) usually is not a reason to refuse a license.
Remember that the rules regarding the issuance of licenses vary greatly from country to country. Therefore, even if you have offenses like traffic infraction or other administrative ones behind you, do not despair. You can consult with our specialists and find out in which jurisdiction you have a chance to get a permit, and which body definitely denies a license in your case.
FAQ
Can you get a gaming license with a felony?
If we answer this question from a theoretical point of view, then yes, you can get a license even if you have a felony conviction (for example, for a traffic infraction). It all depends on the jurisdiction in which you are going to obtain a gambling license. However, there are more tolerant regions, where almost everyone can get a cherished license. The gambling commission, meanwhile, may have questions and the process could be delayed. In many jurisdictions, such as Belarus or Brazil, you will not be allowed to obtain a license with a felony under your belt.
Can you get a gaming license with a misdemeanor?
Usually, the gaming commission has full access to your history. The presence of any offense will not automatically disqualify you from receiving a license. Each case is considered individually. Unambiguous denial will only be automatic if you had offenses related to gambling, casino or lottery fraud, money laundering, and other similar offenses. Such strictness is easily explained: the authorities of jurisdictions do not want people who work in a casino and have access to players’ deposits to have a criminal record in terms of financial crimes.
What can disqualify you from getting a gaming license?
Gaming license disqualifications may depend on different factors from one jurisdiction to another. While in some jurisdictions, such as Belarus and Brazil, a civil or administrative offense is enough to result in disqualification, in others the commission may be more sympathetic to your past wrongdoings. However, almost all jurisdictions will prohibit you from applying for a license if you have a criminal record for economic, financial, or fraudulent gambling offenses. In general, no region wants to besmirch its reputation by issuing a license to an untrustworthy operator.
What can disqualify you from getting a gaming license?
Yes, of course. Any violations of laws or licensing requirements of the jurisdiction can pose a threat of permit disqualification. The same applies to non-payment of taxes or any other mandatory fees. That’s why it is so important to study the country’s gambling legislation and rules for license holders in detail or maybe to ask a lawyer to help you with it. Be careful, because each jurisdiction has its own standards. For example, in the United States, licensees are obliged to remain current on all child support obligations. Violation of this condition also can become a reason for losing a license.
What jurisdictions have the softest licensing conditions?
Gaming license disqualifications may depend on different factors from one jurisdiction to another. While in some jurisdictions, such as Belarus and Brazil, a civil or administrative offense is enough to result in disqualification, in others the commission may be more sympathetic to your past wrongdoings. However, almost all jurisdictions will prohibit you from applying for a license if you have a criminal record for economic, financial, or fraudulent gambling offenses. In general, no region wants to besmirch its reputation by issuing a license to an untrustworthy operator.
Also, the competent authority usually denies a license if the applicant can’t prove his financial solvency. So, in the UK, potential licensees must provide letters of good standing from the bank.
When speaking about complying with the jurisdiction’s legislation, first of all, it’s important to ban gambling on your platform for those under 18 or 21 years of age (depending on the country). Violation of this rule is a serious mistake that will definitely not please the local authorities and may result in the denial or revocation of an existing license.
