An important step in starting a poker room is obtaining the appropriate licence. This process is quite complicated and requires maximum attention to all details of legal, technical, financial nature. However, successfully overcoming the licensing will significantly compensate for the time, effort and finances spent. Obtaining a poker licence will mean that your company meets every requirement of the Regulator of the jurisdiction in which the legal entity is registered. Users in search of a suitable poker room necessarily pay attention to the presence of a licence – if there is one, then the service can be trusted. This way you can attract more customers, use a convenient payment system and work with the best software providers.

 

It can be difficult to pass licensing on your own. There are many factors to consider, from choosing the right jurisdiction and the cost of obtaining a licence, to the specifics of taxation and annual reports in a particular country. Attorney`s Association Lawrange can help you with all the important issues of poker room licensing. We know what measures to take to obtain an online poker licence as quickly as possible. Our experts will prepare, collect and draw up all the necessary documentation for licensing your poker room according to the rules and requirements of the jurisdiction of interest.

 

What is an online poker licence and why do you need one?

A poker licence is an authorisation document for online gambling activities. Its presence means that the company operates legally, fulfils all the requirements of the Regulator and takes measures to protect its users from fraudsters. The licence is issued by an authorised body of a particular jurisdiction, which checks the applicant for compliance with all requirements and controls its activities after licensing.

 

Some entrepreneurs are afraid of too complicated and time-consuming licensing procedure, as well as the financial costs associated with it. However, obtaining an online poker licence has far more advantages than disadvantages:

 

  • Legal stability – the company operates quietly, without sudden blocking and constant search for ways to avoid prosecution by the Regulator. At the same time, the business has ample opportunities for further expansion.
  • User confidence – players prefer operators who are able to ensure the safety of funds. Having a licence reduces most risks to almost zero, which is crucial for users. As a result, overcoming licensing will allow your poker room to steadily expand its clientele.
  • Trust of banks and payment systems – in fact, online gambling business is considered a high-risk activity, so having a licence, especially in a prestigious jurisdiction means for every banking institution that your company will not engage in money laundering and other financial crimes. The same applies to the leading payment systems, without co-operation with which the poker room will not be able to accept payments normally. Due to the rapid spread of cryptocurrencies, the choice of innovative payment solutions has recently developed significantly, and having a licence allows online casinos to be equipped with such solutions.
  • Ability to diversify game content – everything a player sees on a poker room site is designed to spark interest in the game. The more experienced the developer of the gaming industry, the more emotional response will be achieved from the user, and, therefore, the higher the chances that he will return to your site more than once. Thus, obtaining a poker room licence provides the opportunity for your company to attract official serious software providers.
  • Attracting players through advertising – this option is available exclusively to operators with a licence. Of course, the ability to advertise your platform may be quite limited depending on the legal regulations of a particular jurisdiction, but even so, the benefits will be greater than if you do not advertise at all.

 

Important! Experienced players, choosing between various bonuses and the reputation of the poker room, more and more often prefer the latter. Therefore, getting an online poker licence is recommended for everyone who wants to expand their potential audience and the associated profits. A properly organised gambling business can quickly recoup the licence fee, which is often quite high (depending on the jurisdiction).

 

Issuing licences to poker rooms

Licensing of online gambling facilities differs from jurisdiction to jurisdiction. In most countries where poker rooms can operate legally, it is possible to obtain an authorisation document if you have the following conditions:

 

  • Mandatory legal support of the direct process of launching a gambling business.
  • Certified software.
  • Special secure servers.
  • Permission for gambling activities.
  • Merchant account and operational account for normal business activities.
  • Qualified personnel.

 

Most Regulators require that part of the operations must take place in the jurisdiction where the licence is granted. In this case, the licensee needs to ensure compliance with a number of rules concerning financial operations, accounting and auditing, the peculiarities of games and the behaviour of players, company employees, owners and partners.

 

Choosing a jurisdiction to obtain an online poker licence

The issuance of a document for online gambling activities is carried out by special state authorities of the countries whose legislation allows this kind of business. Jurisdictions differ depending on the requirements for the licensee, taxation, licensing costs, reporting and other factors. If any rules are violated, the Regulator may revoke the licence, which will lead to a huge drop in the reputation of the resource.

 

It is extremely important to carefully and seriously consider the choice of the most suitable jurisdiction for opening and licensing a poker room. To do this, you should be interested in:

 

  • Expenses – that is, how much it will cost to operate an online casino in a particular jurisdiction. First, your own budget is determined, and then the amount that you are willing to spend in order to obtain a poker license, set up business and operational support. Thanks to this, you can immediately narrow down the range of jurisdictions to those that suit your budget and opportunities.
  • Political and economic stability – the more stable the country’s policy, including regarding gambling, the less reason to worry about the risks of deteriorating the exchange rate, transferring profits and entering into contracts with third-party contractors.
  • Agreement on avoidance of double taxation with other countries, thanks to which it is possible to significantly reduce tax payments and optimize the company’s expenses.
  • Confidentiality – different countries put forward different requirements for the exchange of information and personal data of beneficial owners.

 

The choice of a suitable jurisdiction is, in fact, quite difficult to do without qualified assistance. Lawrange specialists will compare the cost of licensing with your budget, find out the amount of taxation, clarify whether annual reports are required and other aspects. Based on the information received, they will be able to suggest the most suitable country for your business.

 

Curacao

One of the Caribbean islands, which is one of the oldest gambling regulators, online casino licensing has been carried out here since 1996. This jurisdiction also attracts many other industries (international trade, transportation, oil refining, tourism, etc.), due to affordable taxes, modern developed infrastructure and moderate requirements for starting and licensing a business.

 

There are two types of Curacao gambling licenses:

 

  • Basic – the decision to issue it is made by the Minister of Justice, who has exclusive powers. The base license is valid for 5 years. At the same time, since 1996, only 4 holders of such a license have been operating in Curacao, who put forward their own requirements and prices when issuing sub-licenses.
  • Sub-license – valid indefinitely, but on condition that the base license is active. Based on the above information, it becomes obvious that those who wish to be licensed in Curacao can only rely on sublicenses.

 

The presence of a sub-license allows you to engage in any type of gambling business on the Internet, while most regulators in other countries require separate licensing for each type of activity.

 

Important! In 2023, a fundamental change in the licensing system in this jurisdiction is expected through the introduction of a new independent regulator. It will not issue sub-licenses, but independent B2C and B2B licenses.

 

Important advantages of a gambling license include:

 

  • Affordability – Curaçao is an inexpensive place to get licensed.
  • Efficiency – you can use the license already after 1.5 months.
  • Low tax burden – zero corporate tax and 2% tax on net income.
  • Variability of payment – in addition to standard financial transactions, cryptocurrency transactions are actively practiced here.
  • Simplicity – to overcome licensing, you must follow less stringent rules and meet the minimum number of requirements.

 

However, under the Curacao license, not all players can be allowed into the poker room – the ban applies to users in the USA, France, the Netherlands and Curacao itself.

 

Great Britain

An online casino permit obtained in this jurisdiction is characterized by the highest prestige. There are quite strict rules and requirements for obtaining a license, and the actions of gambling platforms are carefully controlled. The regulator in the UK is the UK Gambling Commission, a body that has been operating since 2007. The set of rules developed by this commission is considered the most advanced and versatile.

 

In the UK, you can get a variety of licenses for completely different gaming companies. The cost of licensing in this case depends on the size of the annual turnover of the poker room, and therefore can vary between 1324 – 500,000 million pounds. In addition, online casinos are required to pay almost 15% of taxes on their income, working exclusively with high-quality software.

 

Malta

This Mediterranean island, which is part of the EU, is also considered a very popular jurisdiction for obtaining gambling licenses. An independent state regulator – MGA (Maltese Gaming Regulatory Commission) has been operating since 2004. This body regulates all online and offline gambling activities in Malta. The regulator is whitelisted by the UK Gambling Commission (UKGC), which allows Maltese license holders to advertise their business in the UK.

 

There are 4 types of gambling licenses, but operators do not need to submit separate applications for each type of license – one application to the Regulator covers several types of permits at once. However, you will have to pay fees for all issued documents.

 

Important! MGA is friendly to all participants in the gambling market. Startups under 5 years of age and income levels of up to €10 million are exempt from the Commission’s annual compliance fee for the first year.

 

Gibraltar

An overseas territory of Great Britain, which is independent in most matters, including taxation. The regulator in this jurisdiction is the GRA Commission, which has been operating since 1998. She is one of the prestigious Regulators of the world. Initially, a license was issued here exclusively for owners of online casinos, but now Gibraltar offers licensing for various types of gambling business, including poker rooms.

 

Getting a poker license costs 2000 pounds. For licensees, the tax rate is 1% of the total gaming income for the year. At the same time, tax payments cannot be less than 85,000 pounds and more than 425,000 pounds.

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Main advantages:

 

  • Loyal attitude of the government to the gaming sector with the provision of guarantees to licensees.
  • The prestige and high reputation of Gibraltar provides an opportunity to steadily expand the circle of partners and master the international gambling market.
  • An extensive legal framework that ensures the safety of assets and interests of all participants in the gaming process.

 

Costa Rica

The main feature of this state in North America is the absence of gambling legislation. Here you can get a formal license that opens up the ability to conduct any type of gambling activity, including online poker. The main advantage is the ease of licensing – the almost complete absence of any requirements, with the exception of the mandatory registration of a local office with a small number of resident employees. In addition, local legislation does not provide for taxation of the gambling business. The main thing is to pay the annual corporate fee on time. An application for a license is considered within 1-3 months.

 

The main disadvantage is the low confidence in the license both on the part of the players and on the part of international payment systems, game providers, etc. Recently, however, the government of Costa Rica plans to develop stricter regulation of online gambling and introduce appropriate taxes.

 

Nevis

You can get a gambling license here in accordance with the Betting and Gaming Authority Act of 1999. For licensing, you will need to register a company and pay a state duty. The license is valid for 1 year, after which it must be renewed. One of the main requirements of the Regulator is the submission of a written application stating that the citizens of the Federation will not be given the opportunity to place bets and other gaming activities.

 

Peculiarities of obtaining an online poker licence offshore

Since licensing in Europe implies high financial costs, as well as the need for regular annual audits and compliance with various requirements, gambling business owners often pay attention to offshore jurisdictions. The main differences between these countries in terms of organizing gaming business activities are in the standards and policies in place. At the same time, it is extremely important to take into account every aspect that the Regulator of a particular jurisdiction focuses on – this will subsequently allow your poker room to work legally.

 

The main criterion for choosing an offshore company is the reputation in the international market – the higher it is, the more countries in the world will consider the activity of your service to be legal, and, therefore, the more likely it is to successfully attract foreign partners, developers, etc.

 

Important! Most offshore licensed online poker rooms are exempt from having to fence their pool of players. They are licensed in one country, yet can provide services to clients in other jurisdictions.

 

How is online poker regulated?

The regulatory body of each country creates its own rules for the operation of poker rooms, focusing on general aspects:

 

  • Segregation of client funds.
  • Processing time for cash outs of clients who intend to withdraw their winnings from the poker room.
  • Promotional activities, including poker bonuses and free-play offers.
  • The level of responsibility in organizing games.
  • The quality of resolution of emerging disputes.
  • Correct and regular audit.

 

Licensed poker companies are required to follow every regulation and comply with all the requirements of the Regulators, as this will not only save you from problems with the law, but also instill confidence among the players. Another important condition for conducting poker business activities on the Internet is the use of modern encryption methods, as well as special tools to protect customers from fraud and deceit. Having a license for everyone means that the poker room is able to ensure the safety of funds and transparent play.

 

Required documents to obtain a poker license

By contacting Attorney`s Association Lawrange, you will receive detailed advice regarding all the important nuances of licensing a poker room, including the necessary documentation. And although the requirements for the Applicant in different countries differ significantly, it is possible to single out a quite standard set of documents required to obtain a gambling license:

 

  • Application in the form prescribed by the Regulator.
  • Certificate confirming the registration of a legal entity in a particular jurisdiction.
  • A copy of the trademark registration.
  • Long-term business plan (calculated for at least 3 years).
  • Declarations according to the established forms.
  • Documentary evidence of financial solvency.
  • Information about the site of the poker room.
  • Software and certification data.
  • Evidence that the founders have no criminal record or other problems with the law.
  • Open bank account or processing.

 

The business plan should contain information about the structure of the company, shareholders, projected profits, financial components, etc. In general, it takes from 1 to 3 months to prepare a package of necessary documents.

 

The cost of obtaining and renewing a poker license online

Each jurisdiction sets its own duties and taxes in relation to the gaming industry. It is generally cheaper to obtain a license in offshore jurisdictions. Regardless of which country you decide to license in, the cost will include the payment for the license itself, as well as the fee for processing the application and issuing it. In some countries, sub-licensing is possible, which allows you to reduce the costs of maintaining a legal entity by distributing them among partners. You can clarify the cost of a license for a poker room and other details if you contact our company’s consultants. To do this, leave a request on the site so that we call you back or write us an e-mail.

 

Why сhoose Lawrange

If you are looking for a way to quickly and legally start gambling activities abroad, then we recommend using the help of our professionals – lawyers, financiers, accountants, consultants with many years of experience. We practice an individual approach to each client, take into account the budget and wishes, on the basis of which we help to choose the right jurisdiction.

 

Our advantages:

 

  • Efficiency.
  • Professionalism.
  • Transparent pricing policy.
  • Availability (always in touch).

 

Our team will receive the necessary documents to start a poker room, eliminating the risk of problems with the law.

 

FAQ

How long can the process of obtaining a poker license take?

It all depends on the jurisdiction in which licensing is planned. As a rule, the average is 1-2 months.

 

What restrictions might be associated with a poker license?

Most often, restrictions relate to the ability to accept players from certain countries. For example, in Curacao it is forbidden to allow residents, as well as users of the USA, France, the Netherlands. Also, depending on the prestige of the license, the circle of software developers, available payment methods, etc. may be limited.

 

What are the risks of operating a poker room without a licence?

The absence of a license makes the business “shadowy”, and, therefore, increases the risk of being penalized, facing blocking of the site, company assets, and even jail time (depending on the country). In addition, without a license, it will not be possible to establish cooperation with prestigious payment systems and game developers. In short, non-licensed poker rooms will not have access to all the features that are necessary for their normal functioning and development.

 

 

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