Challenges in Obtaining a Gambling License
In the dynamic landscape of the gambling industry, obtaining a gambling license is a pivotal step for any business aiming to establish a legal and reputable presence. Navigating through the intricate process of acquiring such a license can be likened to a high-stakes game, with numerous challenges awaiting prospective licensees.
The Critical Importance of Compliance
Different regulatory authorities set different rules. In general, the stricter and m... moreChallenges in Obtaining a Gambling License
In the dynamic landscape of the gambling industry, obtaining a gambling license is a pivotal step for any business aiming to establish a legal and reputable presence. Navigating through the intricate process of acquiring such a license can be likened to a high-stakes game, with numerous challenges awaiting prospective licensees.
The Critical Importance of Compliance
Different regulatory authorities set different rules. In general, the stricter and more complicated the compliance process, the longer it will take to get your license.
Compliance is most difficult with local licenses in regulated jurisdictions. It’s not just the bureaucracy that significantly lengthens the process, but also budget requirements, “murky” shadow economy “rules and disappointing terms.
You may be asking yourself, “What could be more reputable than a local license from a regulated market?”
And you’re right – technically, nothing. In a perfect world.
The reality is that most politicians see the gambling business as a money-printing operation and base their decisions on this false assumption.
That’s why you may see one set of rules today and a year later a completely different set of rules to get a gambling license. Over the years, we’ve seen many cases where a once affordable license became 100 times more expensive in the blink of an eye. The consequences? Smaller companies are sold for pennies on the dollar to a handful of market leaders.
A good example of this is the Romanian gambling license. Once one of the cheapest and most popular licenses in Europe – today a “space shuttle” that no normal startup can afford. Another license is the Philippine Pagcor Offshore Gambling License, which requires an investment of at least USD 1.2 million per year.
The UKGC can probably be considered the most advanced license. It is required for all operators and platforms wishing to do business in the UK.
With advancements come complexities that raise the bar for any start-up. The rules can be so complicated that companies decide to abandon the application after they have started. Don’t forget that these rules are constantly changing, which only makes the already complicated compliance process even more chaotic.
Licenses for the so-called “legal gray” market are no walk in the park either.
The reason for this? Mostly politically backed decisions. Curacao’s new license, for example, is now much more expensive and much more complicated to obtain.
The once most popular license in the world is currently going through uncertain times and is led by a finance minister. The results remain to be seen, but the current trend shows that business owners are fleeing this country en masse for more affordable and “community-friendly” countries such as Anjouan and Tobique.
Achieving and maintaining a strict regulatory framework is definitely the cornerstone for obtaining a gaming license.
Regulatory authorities such as the United Kingdom Gambling Commission (UKGC) or the Malta Gaming Authority (MGA) lay down comprehensive guidelines to ensure the integrity and fairness of gambling. And they are very proactive in this regard.
Potential licensees must adhere to these regulations to the letter, demonstrating their commitment to responsible gaming practices.
Before you apply for a license, it’s important to assess the political situation in that country and understand the government’s “track record”. If you believe everything the regulator tells you on paper, you could be in a lot of trouble in the near future.
Why gambling operators get rejected: License application pitfalls to avoid - https://licensegentlemen.com/blog/challenges-obtaining-gambling-license
