BetB2B: Why is it important to get a license for a betting business or online casino in Europe?
Bogdan LashchenkoYear after year, the iGaming industry brings more and more profit, despite the tightening of control by government regulators and tax authorities, as well as the adoption of measures to combat money laundering.
“In 2023, we are also seeing an increase in the popularity of iGaming, as well as the emergence of new trends such as crypto casinos and blockchain-based casinos,” BetB2B company reported.
According to Gambling Global Market Report 2023, the volume of the global gambling market has already amounted to $702.45 billion this year. The industry is expected to continue to grow, reaching $765.89 billion by 2027.
But it is worth noting that an integral part of the successful development of an iGaming project is the availability of a license. Whether you run a Sportsbook or an online casino, you need to pay attention to obtaining a license in order to be successful, to build trust and do business legally. There are several options to consider, depending on your goals and capabilities.
BetB2B: What is a gambling license?
A gambling license is a permit issued by a regulatory body that gives the right to provide services in the field of online gambling. The license may be limited to certain regions, and in some cases it does not grant the right to work in the territory of the jurisdiction itself.
“Gambling licenses are issued by the regulatory authorities of the state in accordance with the requirements that apply to the owner of the gambling business. These requirements may include the provision of a business plan, a description of the activities and financial results of the company, as well as maintaining accounting records and conducting regular audits. It also requires disclosure of information about the ultimate beneficiaries and the provision of information about the games and the platform software used. The license provides legality and protection for both operators and players. Therefore, before starting your gambling project, it is recommended to understand the licensing process and choose the most suitable jurisdiction,” the BetB2B company commented.
In the EU, there is no specific and unified legislation regulating the sphere of iGaming services. Member States of the EU are autonomous and free to regulate their gambling services, as long as they respect the fundamental freedoms and general provisions established under the Treaty on the Functioning of the European Union (TFEU).
Most EU countries allow at least some games to be offered online. Some countries allow all games, while others only allow certain types, such as betting, poker, or casino games.
“Some European jurisdictions have established monopoly regimes offering online gambling services. They are operated by a state-controlled public operator or a private operator on an exclusive basis,” BetB2B said.
Key European jurisdictions with established iGaming regulations:
- United Kingdom: The UK Gambling Commission regulates online gambling in the United Kingdom. Operators must obtain a license and are subject to strict regulations regarding fairness, player protection, and responsible gambling practices.
- Malta: The Malta Gaming Authority (MGA) licenses and regulates iGaming in Malta. This small Mediterranean country was one of the first to establish comprehensive online gambling legislation. The MGA offers several types of licenses, depending on the nature of the games offered.
- Gibraltar: The Gibraltar Regulatory Authority licenses online gambling. The region is known for its favorable tax laws, attracting numerous igaming companies. The licensing process is comprehensive and includes business and financial plan reviews.
- Isle of Man: The Gambling Supervision Commission regulates iGaming in the Isle of Man. It's known for its progressive approach to online gambling regulation, providing licenses for a wide variety of games.
- Spain: The Directorate General for the Regulation of Gambling is the regulatory body. Spanish law requires operators to obtain a license for each type of game they wish to offer.
- Italy: Agenzia delle Dogane e dei Monopoli regulates iGaming. The Italian market is known for strict regulations and high taxes. Operators must acquire a specific license for each game.
- France: Autorité Nationale des Jeux (ANJ) regulates online gambling. France has a highly regulated market with a strong emphasis on player protection and problem gambling prevention. Licensing is rigorous and expensive, but the market is large and lucrative.
- Germany: Each of the 16 states can regulate online gambling within their territory. A new federal regulatory regime was to be established in 2021, but the specifics might have changed since my last update.
- Sweden: Spelinspektionen is the regulatory body. Since 2019, online gambling is regulated and requires licensing. The regulator focuses on responsible gambling and fairness.
- Denmark: Spillemyndigheden, the Danish Gambling Authority, regulates online gambling. It has progressive laws and strong player protection measures.
In general, all licenses in the betting business can be divided into two types: universal (entitle to work with any online games) and special (allowing to provide only a limited list of services).
BetB2B: Types of gambling licenses
If you delve deeper into this issue, you can collect a decent list of licenses of different types:
- Offline license: This is a license that allows you to conduct betting activities at physical points of sale, such as bookmakers.
- Online license: This type of license gives the right to carry out betting activities via the Internet, allowing players to place bets online using a web or mobile applications.
- Combined license: Some jurisdictions provide a combined license that allows operators to provide services both offline and over the Internet.
- International license: This type of license allows operators to provide betting services in several countries or regions.
- Sports betting license: Provides special licenses for bookmakers who want to offer bets exclusively on sporting events.
- Casino license: Some betting service operators also aim to provide online casino services. This requires an additional license that allows you to operate casino games.
It is important to note that the types and types of licenses may vary depending on the legislation of each EU country.
The BetB2B iGaming platform carefully examines all requirements before launching each affiliate project so that the client already has the necessary license in accordance with applicable laws and regulatory bodies.
Why do I need a license for betting business or online casinos? – BetB2B
The first answer that BetB2B experts give to this question is: "To establish reputation and legal grounds for business."
The presence of a license directly affects the popularity and trust in a gambling establishment. Even inexperienced players pay attention to the description of the project to find out where the company is registered and under what license it operates.
It is the availability of a license that provides a sufficient level of security and reliability that is a key factor in choosing a websites for most players.
“A gambling license allows you to develop your business legally, helping to cooperate with online game developers, conduct advertising campaigns and open trading accounts in payment systems, increasing loyalty and attracting new visitors”, BetB2B specialists comment.
And given the fact that all banks, payment systems and other financial institutions are very careful in their work and carefully check documents, in the absence of a license, they may simply refuse to conduct transactions. And then the chances for the development of the betting business will immediately become equal to zero. Do not forget that in some jurisdictions the lack of a license is equated with illegal gambling and betting activities and can lead to fines and even imprisonment.
Conditions for cooperation with BetB2B for partners with a license
Once a company has secured its iGaming license, the next crucial step involves the further development of its business infrastructure. It's an integral phase where key decisions need to be made, particularly in choosing a service provider for iGaming operators. Ensuring that the selected service provider has a proven track record in the industry is of utmost importance, as this decision significantly influences the overall success and efficiency of the iGaming business.
One such provider that has stood the test of time is BetB2B. They have earned their reputation by assisting iGaming companies in building successful services, including casinos and bookmaker's offices. Their extensive experience in the industry, combined with a comprehensive understanding of the market dynamics, enables them to provide tailored solutions that meet the unique needs of each iGaming company they work with.
BetB2B offers a wide range of IT services, catering to every technical need an iGaming company may have. BetB2B has 3 main out-of-the-box solutions that help organize the work and simplify the process for clients:
- Turnkey Solution: This is a ready-made platform, ideal for gambling or esports betting sites that already have a payment and legal infrastructure, as well as a business license. It includes sports betting, unique games, clients relationship management system (CRM), content management system (CMS), back office, technical support (2-line support), sweepstakes, virtual sports, slots and live casino.
- Sportsbook iFrame: This is a state-of-the-art software designed for international site operators. It offers a multi-language interface that can be customized according to the client's requirements. "Sportsbook iFrame" allows you to integrate selected elements into an existing resource, improving its functionality.
- Retail Solution: This is a useful solution for classic bookmakers, which combines the capabilities of land-based betting shops and betting websites. It can be used for effective online business management.
BetB2B has a number of competitive advantages, such as extensive experience in the market for more than 12 years, extensive coverage of markets, events, sports events, games and slots, as well as a wide range of ready-made solutions and tools.
The company also provides other services, including a client relationship management system (CRM), a financial management system (back office), an agency scheme for setting up multi-level commissions in multiple languages, and an affiliate program for building an affiliate network.
You can learn more about the tools for launching your iGaming company at the following link
Bogdan Lashchenko – content manager at EgamersWorld.Bogdan has been working at EGamersWorld since 2023. Joining the company, he began fillin the site with information, news and events.