The rapid growth in the value of cryptocurrency invariably causes surprise and admiration. If in 2010 you could buy pizza for 10 thousand bitcoins, then in 2022 you could buy a whole island somewhere in the Caribbean. At the same time, more than 30% of cryptocurrency transactions are related to gambling. Opening a cryptocurrency online casino is a profitable business idea lying on the surface. The only “but” when such a case is opened is the legal registration of entrepreneurial activity. Fortunately, we are resolving this issue.
Lawrange law firm specializes in providing services for the legal registration of business, both in the field of cryptocurrency and online gambling. We know how, without violating the law, to register and develop such projects. Among the types of legal assistance that we provide is the choice of the optimal jurisdiction for opening a company and an account for it, obtaining licenses and other necessary permits, as well as such a service as the development of internal regulations and policies that ensure the functioning of the business within the legal framework.
How is a crypto casino different from a regular online casino?
Understanding the concept of “crypto-casino” can be approached from two positions:
- this is an online casino where you can deposit and withdraw funds in one or more cryptocurrencies (both along with fiat money and without it);
- is an online gambling platform based on blockchain technology.
That is, someone thinks that any online casino that supports payments in cryptocurrency can be called cryptocurrency, while someone calls the use of blockchain a fundamental point. The latter allows you to automate payments using smart contracts.
Note! There are many adherents of blockchain casinos, and the number is growing every day. This makes it possible to involve partner sites in cooperation. However, in such a casino, you will have to limit yourself to only games built on blockchain technology, and this “narrows the horizons” for making a profit. Based on this, an entrepreneur needs to choose: 1) open a casino that supports payments in cryptocurrency, and put up with competition, since most online gambling establishments are gradually switching to a “hybrid” model (crypto + fiat); 2) open a blockchain casino, and limit itself to blockchain-based gaming content.
Why open a crypto casino?
The world economy is consistently going through crises one after another. First, in connection with the COVID-19 pandemic, then in connection with the war in Ukraine. Against the backdrop of a slowdown in growth and even a decline in most types of businesses, the gambling industry has managed to quickly adapt to the circumstances and continues to generate income. Moreover, the use of cryptocurrency and blockchain technology provides the ability to work without taking into account the standard factors of changes in the exchange rate of fiat money, for example, inflation and so on. Working with cryptocurrency is carried out according to different rules.
Consider a few main arguments in favor of opening a cryptocurrency casino.
- Global reorientation of players to the Internet and cryptocurrency.
Online casinos are no longer a trend, but a new reality. At all times and centuries there have been admirers of excitement. Once upon a time it was acceptable for them to play in taverns, then in fashionable casinos, and now it is also online. Although the offline format does not lose its relevance, online establishments attract users with their comfort. On the one hand, there is no binding to the location. On the other hand, when using cryptocurrency, it is impossible to track the game, the player is provided with complete anonymity.
- Opportunity to overtake competitors.
Due to the popularity of the format, cryptocurrency casinos are opening very actively. At the same time, some of these online establishments have already managed to show their worth, which makes it possible to attract investors. Now is the best time to occupy this niche in the market and win the attention of solvent players.
- Access to cross-border markets.
Registration of a crypto-casino in one or another jurisdiction does not create any restrictions for working with clients from all over the world. Due to such a wide coverage, the owner of the establishment is provided with a chance to make a profit immediately, without delay. And then, if the first customers like the service, word of mouth will start, more and more players will come according to the recommendations.
- Independence from banks and a high level of encryption.
Gaming preferences are not advertised. However, if a player uses funds from a bank account, then the bankers become aware of transactions related to the game. In the case of checking the client within the framework of compliance, AML and KYC, such circumstances are detected. Along with this, if the casino supports blockchain technology, encryption of transactions and the absence of intermediaries is provided. Cryptocurrency flows freely from one wallet to another.
- Ultra-high yield, covering even big risks.
Despite the fact that all types of crypto business are high-risk activities, the risks are offset by high profitability. Crypto casinos are gaining popularity among the solvent part of the population of our planet – millennials. These are people over thirty with progressive thinking and a good perception of new technologies.
Features of opening a crypto casino
Note! If an entrepreneur is going to open a blockchain casino, then already at the start he can announce such conveniences for customers as a) anonymity – players and operators will only need numbers of cryptocurrency wallets; b) efficiency – cryptocurrency transactions, unlike banking ones, are completed in a couple of minutes; c) benefit – since the bank does not participate in transactions, there are no additional payments.
However, in order to successfully launch a business such as a cryptocurrency casino, a number of conditions must be met:
- issue an iGaming license or legalize the activity in another way, depending on the requirements of the regulator in a particular jurisdiction;
- set up support for several popular cryptocurrencies – today, transactions in bitcoins are no longer enough for a gaming site, players should be guaranteed transactions in various currencies (Etherum, Litecoin, Monero, DASH, and so on);
- create an attractive service – the player will stay in the casino for a long time if bonuses, free spins, low stakes, responsive technical support are offered there;
- ensure cross-browser, cross-platform and multilingual support – since it is necessary to cover the widest possible audience, the crypto casino must be compatible with all common browsers and with a wide variety of devices, as well as for people who speak different languages;
- develop and implement anti-fraud systems, KYC and AML policies – on the one hand, it is necessary to ensure security for users, on the other hand, to prevent offenses from these users (every dispute that arises must be settled according to the relevant regulations).
Important! JSC Lawrange experts are ready to help with the fulfillment of the legal part of these conditions. And at the request of the client, we can recommend reliable contractors to solve technical issues.
Key stages of opening a crypto-casino
The sequence of actions required to open a cryptocurrency casino differs little from the algorithm used to start a traditional online gaming platform. Opening and legalization of a crypto casino includes the following steps:
- market analysis and selection of the project promotion region;
- study of the target audience in the selected region – tastes, gaming preferences;
- preparing a business plan, raising capital and developing a corporate structure;
- registering a company in the chosen jurisdiction and obtaining a license;
- software development, including CRM, analytics, financial modules, player segmentation, chat and technical support for players 24/7;
- selection of game content;
- crypto casino promotion.
From a legal point of view, the most important step in this algorithm of actions is obtaining a license. When a company is registered, it is necessary to comply with the list of requirements of the state regulator in the chosen jurisdiction and prepare a package of documentation. In particular, we are talking about compliance with the rules of Responsible Gambling.
Where is the best place to register a crypto casino?
Jurisdictions that are suitable for cryptocurrency gambling projects can be divided into two groups:
- with the legal framework for state regulation of the industry;
- so-called unregulated jurisdictions.
Note! Based on the experience of JSC Lawrange experts, the second option is more suitable for beginners, since it requires less costs. However, you should be aware of the risks of working in such “gray areas”, for example, possible problems with banks, advertisers, software developers and other third parties. At a certain stage of project development, it is advisable to acquire a license from one of the reputable jurisdictions.
Among the options considered for obtaining a license:
- United Kingdom – crypto gambling is not prohibited, but must comply with the strict requirements of the UKGC (United Kingdom Gambling Commission) in order to obtain a license, the authorized capital of the company must be 500,000 pounds;
- Malta is popular among operators, but obtaining a license from the Gambling Authority is a complex and lengthy process (it takes 3-4 months to complete this task);
- Alderney, Isle of Man, Giblartar, Kahnawake, Philippines are noteworthy, but the amount of the state fee for obtaining a license, audit requirements, and so on are different.
As a matter of priority, we recommend that clients focus on two jurisdictions – Costa Rica and Curacao.
Registering a Crypto Casino in Costa Rica
Despite the fact that there is no legislation regulating gambling in Costa Rica, there are more than 400 bookmakers and online casinos in the country. The government is famous for its tolerant attitude towards such projects, but only as long as the company does not offer gambling in the country and transactions related to them are not processed by local banks. Otherwise, for those who violate the law, serious penalties are provided.
Note! Costa Rica is a small state in Central America, which is characterized by economic and political stability. The government welcomes foreign investment, technology and cryptocurrency. Employers can even pay salaries to employees in cryptocurrency. Specifically, the minimum wage should be paid in fiat currency, while the rest is allowed to be paid in virtual currency.
When registering a crypto casino in Costa Rica, the following points should be considered:
- the server of the online gaming operator may be located in the country, since the activity on the Internet is not considered as an activity in the territory of Costa Rica (that is, services can be offered from the country, but not within the country);
- as such, there are no laws or regulations for online gambling operators;
- to operate the server in Costa Rica, you must obtain a data processing license – “Data processing”;
- Costa Rica is convenient to use as a “sandbox” for startups in the field of crypto-gambling, then there are two options for the development of such projects: 1) continue to work exclusively with cryptocurrency; 2) obtain a license in another jurisdiction (for example, in Curacao or Kahnawake), providing yourself with a reputation and the opportunity to work with both cryptocurrency and fiat;
- the registration process requires the personal presence of the registered agent, in particular a visit to the municipality to obtain a data processing license.
The algorithm for organizing the operation of a crypto-casino in Costa Rica includes the following steps:
- opening a local company;
- registration with the Ministry of Trade, Industry and Economy of Costa Rica;
- applying for and obtaining a data processing license from the municipality.
When registering a company, you will have to:
- disclose to the Central Bank of Costa Rica and update each year the personal information of each shareholder and ultimate beneficiary (but such information is not publicly available);
- provide a power of attorney to a third party (if the owner of the company is not a citizen of Costa Rica) – a registered agent, such a power of attorney can be issued either at a Costa Rica notary or at a Costa Rica consulate;
- include at least two shareholders in the ownership structure, while there are no requirements for the residency of shareholders and directors.
Registering a Crypto Casino in Curacao
It is on Curacao, a small island in the south of the Caribbean, that online gambling is legalized for the first time in the world. More than 450 operators operate with a Curacao license, about 70% of well-known gambling projects. For start-ups and not only, this is the best option for legalizing a gambling project, including a cryptocurrency one. Among the advantages of licensing in Curacao are the relatively short processing time of the request (up to 6 weeks) and the possibility of obtaining a universal permit that is suitable for different types of games.
Attention! We invite you to learn more about what a Curacao gambling license Curacao gambling license is and how to get it with the support of Lawrange JSC representatives.
When registering a crypto casino in Curacao, the following points should be taken into account:
- only sublicenses are available for obtaining, decisions on issuance of which are made by the owners of master licenses, while the rights to gaming activities under a sublicense are no different from the rights under the main license;
- a person wishing to obtain a license must meet the established criteria, both at the stage of application and in the process of doing business;
- a company can be registered in the E-zone, and then the income tax until 2026 will be only 2%;
- the total cost of obtaining a license includes the cost of additional services: for a local CEO, opening a merchant account, obtaining certificates confirming the fairness of the game;
- A gambling license is available remotely without a personal visit to register a company and apply directly.
The algorithm for organizing the work of a crypto-casino in Curacao includes the following steps:
- registration of a company in Curacao with a local representative;
- certification of the software used – obtaining an RNG (Random number generator) certificate;
- preparing documents, submitting an application and obtaining a decision from the regulator;
- launching a crypto-casino.
When registering a company, you will have to:
- place at least one physical server of a gambling company on the territory of the island of Curacao;
- comply with the rules of Responsible Gambling, including the availability for players of a complete and understandable description of gaming products;
- not allow anyone under the age of 18, US citizens and residents of all entities in the Netherlands Antilles to play games islands (which includes Curacay).
Pros of opening a crypto casino
Blockchain casinos can offer users a level of privacy and security that traditional online casinos cannot achieve. Ordinary online casinos use SSL (Secure Sockets Layer) encryption technology to protect the financial information of customers. However, blockchain gives users a higher level of security than SSL. Cryptocurrencies are decentralized, so it is extremely difficult to track player transactions, which ensures anonymity. It attracts players.
Working with fiat money burdens both the operator and the player with additional difficulties. Working with cryptocurrency makes it possible to avoid many of these difficulties. For example, cryptocurrencies are withdrawn instantly without an identity card. The identity of the player remains unrelated to the transactions he makes. If suddenly government agencies want to track how much a player has spent in a particular crypto-casino, they will not be able to do this.
Crypto casinos offer customers a range of benefits that no traditional gaming platform can offer. Therefore, the owner of a crypto-casino initially gets a big head start in competition with competitors.
Cons of opening a crypto casino
The lack of legal regulation of crypto gambling in many jurisdictions is fraught with risks. Also, “pitfalls” are associated with the features of the cryptocurrency itself. In particular, transactions with virtual assets cannot be reversed or revoked. For example, if you mistakenly send money to the wrong address, it is impossible to reverse such a payment.
In addition, the cryptocurrency is characterized by high volatility – rates change rapidly and often unpredictably. Crypto casinos should prepare for such surges, that is, have enough capital in reserve to cover the winnings of players, despite the jump in the rate. In some circles, virtual assets are still skeptical and associated with money laundering.
The authorities of a number of countries have not specified their attitude towards cryptocurrencies and have not introduced rules to regulate crypto-currency activities. However, it is impossible to predict how governments will treat cryptocurrencies in the near future.
If you are thinking about opening a crypto casino, the Lawrange team will answer all your questions and find the best solutions. First, we consult with the client, then we fully undertake the legal support of the project until the start of full-fledged work.
We will help with the registration of a company for a crypto project in the chosen jurisdiction, be it Costa Rica, Curacao or another state. Also, with our support, you will be able to obtain the necessary permits in the optimal time frame. It is profitable to start with a crypto-casino right now, because this is a real way to get profit. Then it will be possible to respond to changes in the legal regulation of cryptocurrency and the market environment, adapting your project to new realities.
In which countries can you open a crypto casino?
The list of jurisdictions where crypto gambling is allowed or not prohibited is quite large. This list includes the UK, Gibraltar, Malta, Curacao, Costa Rica Alderney, the Isle of Man and so on.
Is it possible to register a crypto casino remotely without a personal visit?
In some countries, yes. To do this, you can use the services of a registered agent – a lawyer from Lawrange JSC will tell you everything in detail and help you draw up all the necessary documents (in particular, an agreement is drawn up with an agent).
What are the advantages of a cryptocurrency online casino over a traditional one?
The main advantages of the cryptocurrency gaming platform are providing players with an unprecedented level of anonymity, security and instant transactions without intermediaries and sky-high commissions.