When you choose to start an online gambling business, you have a number of things to run through and important boxes to check. One of the important things to get is a gambling license.
There are various gambling licenses to choose from, but many people find it hard to select a license that will effectively meet all their business needs. The fast-rising demand for an operator with a trustworthy license creates incentives for deregulating the online gaming market.
This reality has caused several obstacles for small gaming companies to get and uphold a gambling license.
Today, the following frameworks exist in the online gambling industry:
- Countries/states with the responsibility of regulating online gambling within their territories;
- Countries/states that can regulate casinos, but provide exclusivity to private/public monopolies;
- Countries/states that place a ban on gambling within their jurisdictions;
- Countries/states without regulations on betting activities.
That is one reason why it has become challenging for today’s online casino operators to comply with the regulations. If you have ever had to wonder which gambling license to choose, then you may find this article beneficial.
In 2006 Italy, for the first time, opened up its betting market to online casinos in the EU, offering licenses to the operators who are able to meet its strict prerequisites. It is only the state who has the authority to legally permit any form of offline and online gambling and all activity in that category falls under the jurisdiction of the Autonomous Administration of the State Monopolies (AAMS).
Features of the AAMS
Features that are easily noticed by a player at a new online casino with a license from the Italian AAMS are visible from the offset. Also, the registration process in such casinos requires new players to append their signature to a contract to reveal their personal data as well as their ‘Codice Fiscale’ (tax code). Also required by casinos with AAMS license is a copy of a new customer’s ID which will then be verified and eventually registered by the AAMS. Any players who default in providing all the listed details within a set timeframe will automatically forfeit their account.
Casinos that are licensed in Italy must follow the RTP percentage approved by the AAMS, with Italy standing as the first nations to implement such a policy within its gaming license.
It was not until 2012 when online slots were permitted to be played legally at an AAMS licensed casino. However, players will find less online slot games at NonAAMS.com compared to casinos licensed by other regulatory bodies.
- There are only a handful of regulatory bodies that are as involved with the casinos operating with their license as AAMS is. The organization has regular access to the servers of its casinos, whereby frequent audits of deposits and withdrawals by players are carried out with. This is done with strict regulations in place to instruct a casino to intervene when any player displays a sign of problem gambling.
- AAMS makes it compulsory that its licensed casinos carry out strict KYC sessions with all new customers. With all players registered on a system that is centrally state-controlled, making it almost unrealistic for cases of fraud to occur.
- Casinos that operate with the AAMS license are also mandated to deposit a huge amount of funds into a specific bank guarantee so that all players would be paid their winnings if the casino ever decides to close down.
AAMS will offer online gambling licenses for no longer than 9 years, with a fixed fee of €2 million per license renewal.
Curacao (Netherland Anthills) has made a name as one of the most famous online gaming licenses, especially because it has a very favourable gaming jurisdiction. Also notable is that the tax service is very affordable and often, master licenses are paired with a license plus hosting services for new guys as well.
Features of Curacao eGaming
Curacao is the world’s first country to legalize gambling, and there is a range of master license holders who offer a full package of sub-licenses paired with hosting as well as IT infrastructure. The primary reason why Curacao is the most famous jurisdiction for an online gambling business is its political stability, simple KYC for players without source of funds and license accessibility.
- Affordable application process
- The relatively straightforward and easy application process
- Curacao boasts of an agreeable tax laws
- Simple gambling laws
- A single license for all gambling needs
- Ability to display proof of licensing label on your site
- Due to the easy license application process and its affordability, many operators believe its licensing standards are low
- Master License holders audit sublicenses from Curacao instead of the Gaming Commission
- A good number of notable international markets are not open to Curacao license holders