There are licensed and unlicensed casinos on the Internet, providing visitors with different types of gambling. License – a document that confirms the legal conduct of gambling business and guarantees players financial stability, quality and safe software. Licensed institutions place on their official sites a scanned copy of the document or indicate its number, company name, date of receipt and jurisdiction. Players can go to the regulator’s website, run a search by number and check for a license at the selected club.

Most popular jurisdictions

Licensed and unlicensed casinos

It is possible to obtain a license for gambling business in such jurisdictions:

  • Alderney: in operation since 2000, it issues two categories of licenses – B2C business client and B2B business. The first one requires you to register and check players, establish contact with them and manage your investment; the second one allows you to run your gambling business outside of Alderney server centers. The cost starts at 17,500 pounds. Annual renewal – from 10 000 pounds.
  • Gibraltar: Gambling tax is one percent (£85,000 to £425,000 per year); the operator must verify its customers and ensure confidentiality of their claims; no license fees are required, but the annual fee is £2,000.
  • Denmark: grants licences for up to five years; the cost is DKK 267,500. The licence price for betting offices and online casinos is 374,500 kroons.
  • Curaçao: issues a licence for all gambling businesses for up to five years and is renewed automatically if all conditions are retained. There is no income tax and the security deposit is 34,000 euros. Corporate tax in E-zone is two percent.
  • Malta: licenses are issued in four classes, which correspond to a separate gambling business area. The first class – online casinos, lotteries and slots, the second – betting offices, the third – betting exchanges, poker and bingo, the fourth – manufacturers of equipment for gambling entertainment. The tax rate for internet clubs is €7,000 per month, for betting offices – 0.5% of the betting amount, for poker – 5% of the income. Corporate tax is 35%.

Features of obtaining a license by gambling establishments

Licensed and unlicensed casinos

To obtain a document confirming the legal activities of the casino, you must undergo a regulated inspection procedure. Initially, the suitability of the company for gambling resource management is assessed. The regulator examines the founding documents, articles of association, minutes of meetings at which the director and the name of the company were chosen, passports of founders, evidence of office. In some cases, dactyloscopy of the founders may be required. It also checks the compliance of the business plan for the long-term operation of online casinos. It should indicate the goals, company structure, type of gambling activity, business model of making a profit, software overview, marketing and sales plan, balance sheets, information on sources of funding and distribution of funds among shareholders.

The regulator then checks the domain name document, contracts with software providers, server physical location diagram, control system, security protocols, antivirus software, data storage systems, technical support, and game rules and procedures. Such audit may last from two to four months. This is followed by approbation and recheck, which takes up to 60 days. During this time, the site should operate in full mode without critical errors. At the end of this period, the regulator checks the registration process, the quality of games, support of payment systems and transactions within the top online casino. The last stage is a re-check of the company by independent organizations without taking into account the initial results. If all stages are successfully passed, the company will receive a license, as it has sufficient technical, material and legal basis.

Differences between licensed and unlicensed casinos

Gambling Internet sites with a license guarantee customers the payment of winnings, and unlicensed – no. On fraudulent sites it is even difficult to win, because their owners can illegally influence the random number generator responsible for random prize combinations. Such portals attract bonuses of up to several thousand dollars. In licensed clubs, the owner has no ability to influence the internal mechanics of the game and manage the probability of winning. Their activities are strictly controlled by independent laboratories and the jurisdiction that issued the license. Copies and test results are available on official casino websites.