Top 5 jurisdictions for getting an iGaming license in 2024

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Obtaining a gambling license is the most important step in the process of launching an online casino or sportsbook. Choosing a regulator is a challenge, especially if it is the operator’s first gambling project. LicensingAid is ready to help you make this decision; read the article to understand the pros and cons of each of the top jurisdictions.

What is a gambling license and do you need to get one?

A gambling license is a ticket to the world of legal gambling. Obtaining this document is one of the most important steps towards launching an iGaming project. Unlicensed operation can lead to serious consequences such as huge fines and, in some countries, even imprisonment. The license allows its owner to provide gambling services legally.. What other benefits does a license give to an online casino or sportsbook operator?

Developers of games and other software for gambling websites prefer to cooperate with licensed operators, refusing to sell their content to illegal ones. It is also difficult for unlicensed projects to use popular payment systems. Finally, users do not trust online casinos without a permit. Gambling on such platforms carries the risk of losing money and leaking personal data. Thus, a license increases the level of trust in your business and allows you to get more customers.

Choosing a jurisdiction for obtaining a license is one of the most difficult challenges that every operator faces. Let’s figure out what criteria you should pay attention to, and which countries today offer the most favorable conditions for legalizing the gambling business.

How to choose a jurisdiction for licensing?

Today, iGaming licenses are issued by many countries around the world. It can be difficult to choose from such a variety, so let’s list the key factors that new operators should consider.

Conditions for obtaining a license, requirements for operators and a set of necessary documents. The licensing process can vary greatly depending on the jurisdiction. While in some countries you can obtain a document with minimal effort, in others the process of legalizing a business requires very serious preparation and even involvement of experts;
License cost, taxes, and other mandatory fees. It is important to choose an affordable option that will not ruin your business faster than the first players appear on the website. Pay attention not only to the application fee but also to administrative fees, taxes, annual and renewal fees;

Reputation of the jurisdiction. Rules for obtaining a license vary from jurisdiction to jurisdiction. In some places, it is much more difficult to legalize the gambling business, but in others, it is a simple procedure with soft conditions. Often, the most respected regulators impose extremely strict requirements on applicants. Their unquestioning observance guarantees compliance with laws and commitment to fair play. This is why it is worth paying attention to the reputation of the jurisdiction rather than trying to find the easiest solution for a license acquisition;

License geography and validity period. Be sure to find out where you are allowed to operate with a local license. Another important point is the validity period of the permit. The longer it is, the more convenient it is for the operator.

Keep reading to learn about the top five jurisdictions to legalize online casinos in 2024.

Malta — prestigious license of a European country

Malta is an island state with a stable economy, it is also a member of the European Union and the first European territory that legalized iGaming. Malta’s regulatory body (Malta Gaming Authority, MGA) has an unquestionable reputation in the international gambling market. Its status also applies to licenses issued in the jurisdiction.

To obtain a Maltese license, an operator must collect an impressive set of documents and prove that its business meets the highest standards of safety and quality. After submitting an application, the online casino owner and its website undergo several checks to determine the applicant’s trustworthiness and the honesty and transparency of his platform. The licensor also requires confirmation of the absence of a criminal record and the availability of sufficient funds from the operator.

What are the advantages of a Maltese license? In addition to the reputation, pros include support from local authorities, a long license validity period (10 years), available benefits for new operators, opportunity to legally work in Europe and participate in major industry events that regularly take place in Malta.

Speaking about the disadvantages of licensing in Malta, first of all, it is worth mentioning the rather high costs of obtaining a document (the application fee is €5,000, and the annual fee is €25,000), taxes, and a lack of a universal license for all types of gambling. However, the last point is not so bad, since the MGA allows you to enter all types of desired permits into one application, rather than going through the licensing procedure several times.

Summarizing the above, we can conclude that a Malta license is an excellent option for operators who are ready to invest morally and financially. In the long run, the effort and expenses will certainly pay off.

Curaçao — favorite island of remote operators

For a long time, Curaçao has been a favorite license destination for many iGaming operators. Among the reasons for this popularity are the fairly low cost of the document, soft requirements for applicants, and a low tax rate. Until 2023, there was no licensing authority in the jurisdiction, and permits were issued by holders of so-called master licenses. Due to the lack of a centralized licensing system, there were no common standards for the gambling business, requirements for operators, or even the fixed amount of the licensing fee.

This year promises to be a turning point for the gambling industry in Curaçao. The reforms announced several years ago will finally come into force. We are talking about establishing a state regulator that will issue B2B and B2C licenses and increasing the licensing fee to €4,000 and the annual payment to €12,000. It is also expected that requirements for operators to comply with AML (Anti-Money Laundering) and responsible gambling standards will be tightened. Holders of current island licenses will be given a period during which they must either bring their businesses into compliance with the new requirements or move to another jurisdiction.

At the end of summer, the Curaçao authorities announced their plans to extend the validity of master licenses for a year. This step was made to facilitate the transition to the new system. However, from September 1, the jurisdiction (without the participation of master license holders) has already begun issuing permits to gambling operators. These documents are called licenses with extended obligations.

Today, Curaçao is going through a period of transition. The licensing process on the island has not yet found its final form, and therefore it is too early to talk about the positive or negative impact of changes. However, we should note that the reforms are expected to improve the reputation of local licenses in the international arena. LicensingAid keeps its finger on the pulse and monitors the situation in the jurisdiction.

Anjouan — a hidden gem of the industry

A small island in the Indian Ocean became the godsend of the year in the iGaming licensing world. Experts predict Anjouan’s popularity will be comparable to the former success of Curaçao. Especially now, when the latter is changing the rules of the game, operators should take a closer look at the new promising jurisdiction.

Anjouan license allows players to offer all types of online gambling and sports betting. In addition, the jurisdiction does not have a tax on gross gaming revenue GGR, and the procedure for obtaining a license is simple and straightforward. So, what do you need to become its holder?

The local regulator requires applicants to provide a business plan and detailed information about the company. Also among the conditions are the restriction of access to gambling on the site for minors, compliance with the principles of AML, KYC (know your customer) and responsible gambling. Once the application is submitted, the operator, its business, and its platform are subject to several checks.

Anjouan issues licenses for a year with the possibility of renewal.

Kahnawake — tried-and-true licensing option

Kahnawake is a small Mohawk settlement in Quebec, Canada. This jurisdiction is famous for its loyal attitude towards the gambling business and issuing licenses with a brilliant reputation. One of the main reasons why operators choose Kahnawake is the absence of taxes (both corporate and gambling ones). Moreover, a local license allows you to operate in all countries (where gambling is legal) except the USA.

Those wishing to launch an iGaming project in Kahnawake must obtain two licenses — Client Provider Authorizations (CPA) and Key Person License (KPL). The total application fee for these documents is $45,000. The annual fee for both licenses is $21,000. Thus, the costs of legalizing a gambling website in a jurisdiction, although significant, are still affordable for small and medium businesses.

What are the licensing requirements in Kahnawake? The conditions set by the local gambling regulator are quite strict. For example, the applicant needs to prove his impeccable reputation, as well as experience in the industry. All software used on the online casino website must comply with local laws, and the company’s servers must be located in the settlement. Operators wishing to obtain a license are required to provide a business plan and random number generator certificates, as well as collect a full package of necessary documents about the company and its key persons. The processing time is about 2 months.

The Isle of Man — a respectable license that is worth the money

The Isle of Man is known as one of the most prestigious places to obtain an online gambling license. An impeccable reputation, no corporate tax, the ability to work in the British market and comprehensive support for the gambling industry from local authorities — this is the formula for success. But how difficult is it to get an island license?

The Isle of Man Gambling Supervision Commission does everything possible to maintain the prestigious status of the jurisdiction, and therefore strictly filters candidates for obtaining a license. The requirements for applicants are quite strict, but they are still feasible.

To obtain a license, the operator must open a physical office in the jurisdiction, hire two island-resident directors, host servers there, and open an account in a local bank. It is necessary to collect a comprehensive package of documents about the company and the applicant, draw up a detailed business plan and confirm the protection of user deposits. Consideration of the application takes about 3 months, but the process may take longer if the regulator has additional questions for the operator.

The licensing fee in the Isle of Man is just £5,000, but there is also a mandatory annual fee of £35,000. The license is issued for 5 years with the possibility of extension.

Conclusion

All five jurisdictions on our list are certainly worth attention. Which one to choose to legalize the gambling business is not an easy decision. LicensingAid specialists have many years of experience working with iGaming projects and will be able to find the perfect solution for your company. Our services include: