Regulation in online gambling is continuing to grow as more emerging markets expect operators and online casino software providers to have the requisite permits or certifications in order to offer a wide variety of products, from casino games to poker, sportsbetting platforms to gaming content aggregators. Below we answer a few frequently asked questions about licensing and which licences ESA Gaming holds, both for it's gaming products and Game Aggregator System (GAS).
An online gaming licence is a legal permit, typically issued by a national regulatory authority, that allows operators and suppliers in gambling to operate online casinos or sportsbooks or to supply services within the relevant regions or territories.
In many territories, for a B2B or B2C company to provide online gaming services, they may be required to hold a licence covering the areas in which they wish to operate. The acquisition of such a licence often involves a thorough (and time-consuming) administrative and technical process as well as the payment of fees.
It is a frequent requirement from financial institutions as well as a potential contracting requirement from potential partners, therefore can be crucial in the growth of any company in the online gaming sector, although the costs can be significant.
There is no standard cost of such licences as it may depend on the kind of gaming licence required to operate (for example B2B Supplier or B2C operator) as well as the territory in which the online gaming licence application is made.
As suggested above, regulatory requirements can vary widely from jurisdiction to jurisdiction, some having much more strict regulations, and will also depend on the type of licence applied for.
More and more nations are implementing regulatory frameworks requiring online casinos to license in order to offer games directly to end users. Software providers may also be required to licence or certify their games, by such operators and indeed regulators. You can see a long list of licensed online casino software providers, integrated into our casino Game Aggregator System here.
Who actually needs one is not clear cut in all jurisdictions, but typically any business that offers facilities for gambling, betting, or participating in lotteries directly to end users, requires licences to operate in a legal manner. Obtaining such a licence and operating with certified online game providers is considered to be fundamental for operators in most countries.
If you register a business, intending to offer (operator) Poker, Casino, Sports book, Lottery products or Bingo to end users a licence is needed.
If you are intending to supply software products to gambling operators a licence may be required in some jurisdictions. Other national gambling authorities may simply require certification of products.
Online Gambling (or gaming) licences may sometimes be referred to as “remote” gaming licences.
The types of licenses required by a company depends on a number of factors, such as:
• The type of gambling and/or betting, i.e., sports book, casino, poker, bingo etc.
• The type of service (for example B2C or B2B)
• The jurisdiction of the operator / supplier and its target customers
Every licensing jurisdiction will have its own regulatory system, which may cover one or more of the above types of products.
Regulation in online gambling means governments and regulatory authorities receive revenue through licensing and taxation and also regulation can ensure more protection for players and operators alike as it often requires implementation of player protection mechanisms and fraud and anti-money laundering procedures.
Operating a casino or sports book with a licence can also ensure businesses avoid potential damage to their image and reputation. Other disadvantages of not operating with licences can include:
Problems with financial institutions: There is a risk that financial institutions may not wish to work with operators in certain jurisdictions unless they have the requisite permits. Licences and certifications mean a business is “trustworthy” from the perspective offinancial institutions because they have had to go through the requisite checks.
Limited partnerships with software suppliers: Online casino software providers will offer their products more readily with companies with licences.
A lack of player trust: Licensed online gambling businesses are likely to be trusted by more casual players as the licence is often a guarantee the operator has had to follow certain rules which offer the player greater protection. From a B2B perspective if games are licensed or certified this also means they have been extensively tested to ensure fairness.
A lack of new market opportunities: Without a licence many territories will not allow an online gaming operator to offer products to players, therefore growth opportunities may be limited for businesses looking to add more markets to their portfolio.
The gambling industry in Malta and the Maltese Gaming Authority are synonymous with safety and fairness in gambling. Any business awarded a licence from the MGA, one of the oldest regulatory bodies in the online gaming industry, can be sure it has a trustworthy base from which to operate.
The MGA offers:
• 4 “classes” of licences, for operators, software suppliers and hosting providers
• A reliable and renowned regulatory framework
• Wide market reach and therefore wider business opportunities
• All the benefits of operating from a respected EU jurisdiction
• B2B Malta Critical Supply Licence - MGA
• B2B Romanian Licence - ONJN
• B2B Greek Licence - HGC
• South Africa Certificate of Suitability (Western Cape) - WCGRB
• Italian Game Certification
• Brazil Game Certification
• Portugal Game Certification
• Colombia Game Certification
• ISO 27001 Standard Certification
Soho St Julians,
Punchbowl Centre Elia Zammit Street,
St. Julians STJ 3154, Malta
