Most countries have their own online gambling laws and regulations. This leads to overall confusion as rules and regulations can vary drastically from one region to the other, and this complicates things even further.

Therefore, this is where Online Gambling Jurisdictions enter the fray. There are certain regions in the world where relaxed gambling laws leads to the birth of gambling jurisdictions.

These jurisdictions have the power to license and regulate online gambling companies.

• Did you know that 70% of the top online gambling websites have been licensed by the top 8 major online gambling jurisdictions?
• Did you know that online gambling was the biggest industry in 6 of the 8 major online gambling jurisdictions ?

Within these jurisdictions, there are official licensing authorities which are responsible not only for issuing licenses, but also for regulating the licensees.

Usually, these licensees are required to deploy a certain percentage of their workforce and operations in the area of the jurisdiction where they procured their license from. Only then can offer their services to customers legally.

Thinking about where did you favourite gambling websites get their license from ?
Well, fret not, as we have got you covered by explaining in detail the top 8 online gambling jurisdictions in the world.

1. Alderney

https://youtu.be/WInwvVu1AgM

Facts

Location : British Channel
Licensing Fee : £10,000
Jurisdiction Founded In : 2000

One of the largest islands along the British Channel, Alderney is considered as an important aspect of one of the leading offshore finance centers in the world. While Alderney, along with the other British Channel Islands, is still dependent on the British Crown, it is not a part of the United Kingdom and hence, is self-governed.

The AGCC

The Alderney Gambling Control Commission, established in May 2000, is a respected provider of online gambling licensure. The commission adheres to the highest international standards, focusing on total transparency in its operations to ensure fair licensing.

The commission is also primarily responsible for supervising the activities of all the operators, which have been given licenses. The commission’s responsibilities also extend to customer protection, to ensure that customers of licensed gambling sites are fairly treated. Customers have the option of reporting to the AGCC in case of any sort of dispute with a licensed gambling site, to seek arbitration.

The AGCC provides two main types of licenses. The first is the Category 1 license, reserved for Business To Consumer (B2C) operations, and is awarded to the organizations providing their services directly to the final customer, such as gambling sites. The second is a Category 2 license, which is for Business To Business (B2B) operations, which includes service providers such as Net Ent etc.

The AGCC took a massive step in its development in 2011, when it entered a cooperation agreement with the Nevada Gaming Control Board (NGCB). This was a huge development towards international cooperation in the Online Gambling industry.

Sites which manage to secure licenses from the AGCC, are required to comply with the following set rules :

• Sites should submit their registered software for testing regularly.
• Publish updated reports of every game’s Return To Player figures.
• Include a digital clock in their gaming software, to help players keep track of their game time and prevent gambling addiction.
• Establish strict financial limits on the customer’s initial deposits.
• Keep a weeklong waiting period for all limit increase requests, to prevent obsessed customers from losing huge sums of money frequently.

There are 3 main stages in the license application process in Alderney.

• Step 1 : The applicant is required to form a company registered in Alderney, and publish a notice of application in the Alderney Gazette.
• Step 2 : The aforementioned registered company proceeds to submit an application to the AGCC. A valid application should include :
  • A signed copy of the application form along with all supporting documents.
  • An initial deposit of £10,000 paid to the AGCC.

• Step 3 : After receiving the application, the Director of Regulatory Operations arranges a meeting with the applicant, so as to better understand the following :
  • The business plan and proposed operations.
  • Executive associates and third party software providers.
  • All Corporate entities involved in the application process
  • People who may be required to submit key individual certificates.

Taking into account all the requirements, the Commission then assesses the application against the given criterias, and if the application is successful, a license is then issued upon payment of the license fee.

2. Antigua And Barbuda

Facts

Location : Caribbean Sea
Licensing Fee : £100,000
Jurisdiction Founded In : 1982

Antigua and Barbuda is a twin island state located in the Caribbean Sea. Till 1981 it fell directly under the British Rule, and then gained complete independence. Despite being an independent state, the island continued following the English Common Law, also copying the important aspect of Britain’s legislative framework.

After the International Business Corporations Act was enacted in 1982, the island became a key jurisdiction for offshore banking, eventually leading to its popularity as a jurisdiction for online gambling.

The Island country was actually the first registered nation to license and regulate online gambling. 1994 was the year when Antigua And Barbuda became the world’s first online gambling jurisdiction.

The Directorate Of Offshore Gaming

The regulatory body in charge of overseeing all the online gambling activity in Antigua and Barbuda is known as the The Directorate Of Offshore Gaming. The parent body for this regulatory body is the Financial Services Regulatory Commission (FSRC).

The Directorate is directly responsible for the supervision and control of the entire industry in the island based on the framework provided. The Directorate Of Offshore Gaming provides two main kinds of licenses, one for Interactive Wagering and the other for Interactive Gaming.

The body has to ensure that they issue licenses only to approved operators, and ensuring that the online casinos that have procured their licenses from them do not misuse any features and act within the stipulated guidelines of fair practice.

Licensees that have been approved get a distinctive preferential seal, which they can display to prove they have met all the necessary requirements. Companies prefer obtaining licenses from this island state primarily due to the high quality telecommunication facilities, provided via cable as well as the wireless resources.

The telecommunication costs are highly competitive in Antigua and are hence, much lower than other jurisdictions. A Memorandum Of Understanding was signed by the FSRC with the Kahnawake Gaming Commission, in 2010.

The terms of the memorandum enable the operators licensed by both the aforementioned jurisdictions to apply for Inter-jurisdiction authorization, which basically allows them to host their activities in either of these two jurisdictions.

Application Process

• Just like Alderney, it is important for prospective licensees to have an offshore company registered in Antigua and Barbuda. The aforementioned company only can proceed with the application for a gaming license.
• The company can apply for an interactive gaming license or an interactive wagering license. These applications require the filling of certain prescribed forms provided by the government.
• The applicant has to provide detailed information about the company, including its shareholders, directors and officers.
• The fee for the interactive gaming license is £100,000 while the fee for the interactive wagering license is £75,000, and the license procedure can take a total of 30 days.
• Every company should appoint one key employee/director, who should be the point of contact should the government ever wish to communicate with the company.

3. Costa Rica

Facts

Location : Central America
Licensing Fee : $5000
Jurisdiction Founded In : 1999

Costa Rica is a Central American country renowned for its remarkable commitment to environmental sustainability and its tolerant style of governance. The country is bordered by Nicaragua on the Northern Side and Panama in the South.

Costa Rica has been an independent democracy since 1949, with a stable government and impressive standard of living. However, their regulations for online gambling are not exactly stable, a fact which has been exploited by several companies to procure online gaming licenses with ease.

Licensing In Costa Rica

The primary reason why many prospective licensees and operators flock to Costa Rica is the lack of strict laws governing online gambling in the country. The laws are not systematic and well implemented, and only apply for the residents of the country.

Paying a nominal amount of $5000 for a general-purpose license is the only basic requirement for new online gaming companies. On top of that, license renewal at the end of the year costs another $5000, and $500 has to be paid for all the legal costs, which is comparatively much lower than other jurisdictions.

The rare lack of requirements for licensing is the primary cause behind more than 300 online gaming companies originating from Costa Rica. These companies are not even required to pay any taxes as their revenue is from foreign sources.

Disadvantages

• The ease of getting licenses in Costa Rica has given birth to several rogue online casino sites as well. There are no fixed laws governing online gambling, and after paying the licensing fee the companies are allowed to operate as they please, as long as they don’t allow Costa Rican residents to use their services, as online gambling is banned for Costa Ricans. The negligible tax rate also makes it a favourable destination for rogue casinos.
• Apart from the financial aspects, the authorities are least interested in doing a background check of the prospective licensees. The company’s reputation and softwares etc are not checked, and they are handed upon the license as soon as they make the payment.
• Since there is no central governing body to oversee the operations of these online casinos, handling disputes adequately is nearly impossible. These companies govern themselves, which means a customer is at the mercy of these operators in case of any dispute.
• Customers would be advised to do a long research before thinking about depositing their hard earned money into any of the online casinos licensed by Costa Rica. There are a few reputable casinos, however, such as : Old Havana Casino, Sun Palace Casino, Vegas Casino Online, Sportbet Casino etc.

These disadvantages are one of the biggest reasons why the Costa Rica jurisdiction does not feature on the white-list of the United Kingdom Gambling Commission, which means that the online gambling sites licensed by Costa Rica cannot cater to UK residents legally.

4. Gibraltar

Facts

Location : Below Spain
Licensing Fee : $10000
Jurisdiction Founded In : 1998

The British Isle Of Gibraltar is located on the southern end of the Iberian Peninsula. The overseas territory has an area of just 2.6 square miles, and is bordered on the North by Spain. Gibraltar is home to just about 30000 citizens. The isle was named after an Arab saying meaning The Mountain Of Tariq, with reference to the world famous Rock Of Gibraltar.

Online Gambling Licenses In Gibraltar

The gambling industry is the largest employer in this region, with Gibraltar being one of the best known gambling jurisdictions ever since they started providing licenses to online gaming sites in 1998.

Some of the best known online gaming sites such as Ladbrokes, have procured their gaming licenses from Gibraltar. Gibraltar has its own licensing and regulation authority known as the Gibraltar Regulatory Authority (GRA). The gaming division of the GRA handles all the licenses related to online gaming.

Licenses in Gibraltar are not too easy to obtain, primarily because the regulatory body is very strict. Only very experienced operators with a spotless track record and a brilliant reputation in the industry are considered for a license in Gibraltar.

Along with the attributes mentioned above, a prospective licensee should also have good financial resources and a realistic business plan. Unlike other jurisdictions, Gibraltar does not award licenses to companies which only want to setup their computer servers in the island. The whole operations of favoured companies must take place in Gibraltar.

There are a total of 7 kinds of licenses that the Licensing Authority can issue, namely :

1. A bookmaker’s License
2. A betting intermediary’s license
3. A gaming operator’s license
4. A gaming machine license
5. A lottery promoter’s license
6. A pools promoter’s license
7. A remote gambling license

Licensing Process

To begin the licensing process, prospective operators have to provide a 2-3 page proposal outlining the business plan along with the background and experience of the company involved. Detailed documentation is often required for the Government to pursue such applications, which includes ownership details, and key personnel and shareholders.

Applications can take several months to process due to the extensive due diligence involved. The licensee should always be controlled and managed from within Gibraltar itself. The licensee cannot open a bank account, hold and clear customer credit card transactions, or maintain a credit card merchant account in a jurisdiction other than Gibraltar.

Gaming Tax is levied 1% of the total turnover for betting sites, with a minimum tax payable of 1% of the total turnover for betting sites, with a minimum tax payable of £85,000 per annum. Licenses issued in Gibraltar are also annually renewable, upon payment of a one time fee of £2,000, subject to the completion and agreement of all terms and conditions.

Top Casinos Licensed In Gibraltar

1. Ladbrokes
2. BetVictor
3. IGT
4. BWIN
5. Tombola
6. Inspired Gaming
7. Gamesys

5. Malta

Facts

Location : Mediterranean Sea
Licensing Fee : £8500
Jurisdiction Founded In : 1996

Malta is a tiny island off the coast of North Africa, located in the Mediterranean Sea, below Sicily. It is a member of the British Commonwealth as well as the European Union. Malta was the first jurisdiction within the EU to regulate online gambling on its shores. Malta has now evolved to become one of the most popular and largest jurisdictions for gambling websites seeking licenses.

Gambling Legislation In Malta

The biggest advantage of procuring a license from Malta is that it appears on the ‘white list’ issued by the United Kingdom Gambling Commission. This allows Maltese Gaming License holders to exclusively market their services to UK residents. The competitive licensing fees and favourable tax rates in the country are additional benefits.

There are 4 main kinds of licenses that operators can apply for in Malta :

• Class 1, covering casino-type games, skill games, and online lotteries.
• Class 2, covering fixed odds betting, pool betting, and spread betting.
• Class 3, covering peer to peer gaming and betting exchanges.
• Class 4, which is for software vendors.

Operators can also apply for multiple licenses, which are usually issued for 5 years at a time. The lotteries And Gaming Authority (LGA) is the organization responsible for regulating online gambling in the region. More than 500 top gambling sites are currently licensed by this organization.

The Malta Remote Gaming Council (MRGC) was initiated by the LGA in 2005 to provide licensed operators with a platform to discuss industry developments with the authorities. Giving and receiving feedback is an important aspect of the industry.

The application fees for a new license is £ 2230 , while the annual fee to maintain the license is £8500/ The renewal fee is £1500 per year.

Application Process

The application for a license in Malta is processed by the Malta Gaming Authority, and has to go through 4 main stages which the authority uses to thoroughly analyze each case.

1. Fit And Proper : The MGA does a thorough analysis of each applicant, accessing all possible information related to the company’s personnel involved in the the financial aspect of the firm. The business viability of the prospective licensee is also analyzed.
2. Business Planning : The MGA critically examines the business plan of each applicant, with an in-depth financial analysis being the norm. The applicant is required to include their marketing strategies, growth targets and detailed HR plan as part of a forecast for their operations.
3. Operational Requirements : The applicant is also examined based on the instruments which is required to conduct their operations. These instruments include the casino games, softwares, and the business processes as well as rules and terms related to conducting those remote games and control systems.
4. System Review : After the successful completion of all the 3 stages, the MGA informs the applicant that their application was successful. The applicant is then invited to implement their business in a stimulated technical environment for 60 days, in preparation to launch it properly after that. Within those 60 days, the MGA conduct audits and reviews of the system to eliminate any flaws.

Online Casinos Licensed In Malta

Some of the biggest and most popular online casino sites have procured their licenses from Malta, namely:

• Leo Vegas Casino
• Betfair Casino
• Unibet Casino
• Guts Casino
• Slots Million

6. Kahnawake

Facts

Location : Quebec, Canada
Licensing Fee : $25000
Jurisdiction Founded In : 1996

Kahnawake is another hugely popular online gambling jurisdiction, located near the Southern Shore of the St. Lawrence River in Quebec, Canada. It is primarily a Mohawk territory with a total area of a 48 square kilometers. Kahnawake was one of the first regional territories in the world to recognize the potential of online gambling.

The Kahnawake Gaming Commission

The KGC was set up way back in June 1996, becoming one of the first recognized online gaming regulatory bodies in the world. However, it wasn’t until 1999 till they first enacted the regulations concerning interactive gaming.

This was possible only after the Mohawk Council of Kahnawake passed the Kahnawake Gaming Law. The KGC is primarily concerning with providing online gambling licenses to firms which want to provide internet gambling facilities. The commission also granted licenses to a few land based poker rooms in the region.

The commission has 3 members, with each member working through a 2 year term. These members are elected by the Mohawk Council, the body that governs the region.

The Kahnawake Gaming Commission issues 4 main types of licenses :

1. Interactive Gaming License (IGC)
2. Client Provider Authorization (CPA)
3. Secondary Client Provider Authorization (Secondary CPA)
4. Key Person License (KPL)

The primary objective of the KGC, apart from issuing licenses, is to ensure that all gambling activities in the region adhere to the following principles :

• To provide a lawful basis for controlling and regulating interactive gaming.
• To ensure responsible and honest conduction of interactive gaming.
• To prevent interactive gambling from being connected to organized crime.
• To prevent minors (below 18) from indulging in any sort of gambling.
• To ensure fair treatment of customers by licensed operators.

Applying for a license in Kahnawake requires the applicant to pay an initial fee of $25000 for a client provider license. An additional license known as the Key Person license also needs to be purchased at $5000 per key person in the company. Another deposit of $15000 needs to paid as part of the software testing fee, while the annual fee for the license is $10000/annum.

The Kahnawake Gaming Commission is known to avoid working in isolation. In 2005 they collaborated with the Financial Services Regulatory Commission Of Antigua And Barbuda, while in 2006 they entered into an agreement with the Lotteries And Gaming Authority Of Malta.

7. Curacao

Facts

Location : Venezuela
Licensing Fee : $10000
Jurisdiction Founded In : 1996

The Curacao e-Gaming Licensing Authority was established way back in 1996. It is one of the first e-gaming service providers in the world, and also one of the oldest regulating authorities.

The industry boomed tremendously in 2002, when online gaming regulation was finally decentralized in Curacao, with the help of the Curacao Gaming Control Board. Curacao is located off the coast of Venezuela, however it remains as part of The Netherlands’ territory.

The Curacao e-Gaming Licensing Authority

The Curacao e-Gaming Licensing Authority is the main authority for interactive gaming in the region. Unlike other jurisdictions, the CGLA issues just one common license, covering all kinds of games, whether they include chance, skill or even sports betting.

Apart from issuing licenses, the authority provides a diverse range of services such as hosting online gaming events, IT infrastructure, and management and handling of issued gaming licenses. These services make Curacao highly attractive for prospective operators, as they would prefer to begin in a region with comparatively less starting up issues.

The tax laws, in collaboration with the Gaming authority, are very favourable for operators to issue licenses in Curacao. The net corporate income tax rate is only 2%, while there is a 0% tax on gross bets. Apart from that, there is no sales tax, no import duties, no restriction on dividend withdrawals and even VAT does not apply.

All licensed companies by the gamin authority must display their official license seal at all times. This seal is a tangible assurance that the company is operating in tandem with the jurisdictions legal and financial requirements. It also assures that the company has its computer hardware located in the Curacao region itself.

Application Process For A License In Curacao

To apply for a license in Curacao, the prospective operator has to submit an application with one of the master license holders. This includes submitting proof of beneficial ownership of the company in question. Upon approval, the operator is then charged between $1000-$7000 per month, at the licensor’s discretion.

A license application can take up to 6 weeks to materialize, and for a favourable outcome, the following requirements must be adhered to the by the applicants :

• Owner cannot have a criminal record
• Copy of the owner’s passport should be submitted
• Proof that minors have been blocked from using the online casino
• Detailed descriptions of the games displayed on the site
• Information and warning about gambling addiction clearly displayed
• Copies of the owner’s utility bills must be provided
• Details about all online software used must be revealed
• A backup of transaction database must be hosted in Curacao itself.

The cost of booking an appointment and procuring the license is about $10000. There is also an additional fee of $4150 which is to be paid annually as a management fee.

Warning

The biggest disadvantage of procuring a license from Curacao is that it strictly takes a hands off approach towards disputes between online casinos and their customers. They urge the parties to settle their disputes amicably without involving the gaming authority.

While this works in the case of reputable casinos, there are many shady online gaming sites that have also obtained licenses in Curacao, and they have a history of cheating their customers.

Some of the reputable casinos which have been issued licenses from Curacao include :

• Euro Slots
• FlyCasino
• Guts Casino
• SlotJoint Casino
• Grand Eagle Casino

8. Isle Of Man

Facts

Location : Irish Sea
Licensing Fee : $35000/annum
Jurisdiction Founded In : 2001

Isle Of Man is a tiny island located in the Irish Sea, off the coast of England. In recent times it has become a part of the famed ‘Big 4’ of gaming jurisdictions, along with Malta, Gibraltar and Alderney. The Gambling Supervision Commission introduced a legislation to regulate and license online gambling way back in 2001.

Obtaining A License

There are 4 main kinds of gaming licenses on offer in this jurisdiction : Online Gaming, land-based casinos, betting offices and controlled gaming machines.

The first step towards procuring the license involves the applicant filling out all the paperwork required by the Supervision Commission. The Governing Body is then able to analyze the intentions and business plan of the prospective applicant. This also lets the commission keep a track of any criminal past of the applicant.

The software of every new online casino applicant is then thoroughly checked for fairness and reliability. This can be proved by earning a trust certificate from one of the 13 testing houses.

After that, the applicant then has to open a bank account within the Isle Of Man. The applicant also has to ensure that the company deploys 2 directors and 1 operations manager on the mainland. An auditing process also occurs randomly to ensure that the licensee is adhering to all the rules and regulations of the Commission.

There are several fees and taxes, which must be paid by the applicant while applying for a license.

• $5000 is a one time administration fee charged during the initial application
• $35000 is the annual license fee.
• 1.5% tax is deducted if the gross gaming yield is below $20 million, while 0.5% tax is deducted if the gaming yield is between 20-40 million.

Notable License Holders

Some of the most reputed and notable license holders from The Isle Of Man include :

• Paddy Power Holdings Ltd. : The popular betting website runs a total of 9 different sub websites, including branches for poker and sports betting.
• Knockout Gaming : 4 different sites are operated under this popular banner, including Knockout Gaming, Knockout Trading and Knockout Casino.
• Rational Entertainment Enterprises : Ltd. : Operates several different websites for PokerStars, the biggest poker room on this planet.
• Boylesports Ltd : They operate 5 different sites, including ApolloBet and BoyleSports.

The jurisdiction is also famous for the way it manages to handle disputes and combats unpleasant activites. The Money Laundering And Terrorist Financing Code of 2013 requires a thorough risk assessment by every license holder to prevent illegal money laundering activities.

The Gambling Supervision Act of 2010 defines the functions and powers of the Isle Of Man Gambling Supervision Commission, and adds value to the Commission Appeals process.