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  1. Comparsino
  2. Licenses

Casino Licenses

Online casino licenses are one of the four most important pillars underpinning the burgeoning online casino industry. Casino licenses, together with regulators, auditors, and self-exclusion services, create a fair, legal, and safe online environment for punters to engage in online gambling. The casino licenses are the seal of trust that gives the players confidence to deposit their money with the online casinos.

Malta Gaming Authority

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Why Should You Play On Licensed Online Casinos?

Think about it: what’s to stop an online casino from taking all your money without offering any explanation?

The thing that’s keeping them in check is the rule of law established by the gambling regulator whose license is issued to the casino. The license is a hallmark of trust that demonstrates that the casino has fulfilled all the compliance requirements set forth by the respective gambling regulator.

As you can imagine, the license is only worth as much as the credibility of the laws, enforcement policy, and proactiveness displayed by the license issuing regulator. There are several reasons why you should play on licensed online casinos only, and here are some of them:

  1. Player Protection – As discussed above, a license is a sign that the casino has complied with the respective regulator’s guidelines and compliance requirements. These requirements usually include stringent policies against unlawful activities, unfair games, and malpractices. In the case that the license holder indulges in malpractice, the player can reach the license issuing regulator and lodge a complaint with them, who may uphold the player rights.
  2. Fair Gameplay – Online casinos are required to show strong evidence that their games are fair to the players. Only then they are issued licenses. Therefore, they hire third-party auditors to test and certify their games. Needless to say, licensed casinos are those that have passed this test. So, you can be sure that the games they offer are fair to you.
  3. Safe and Secure Environment – Another requirement of regulators is that the online casinos install robust security features to prevent unauthorised access of your money or personal details on the casino. Therefore, you can expect a safe and secure environment for playing casino games on licensed sites.
  4. Legal Gaming – A gambling license grants online casino access to several jurisdictions across the world. If your jurisdiction is part of the casino’s reach, then you can indulge in online gambling entirely legally, as long as it’s not prohibited in your region.

Casino Licenses FAQs

Not at all. Even licensed online casinos often try and do break rules. But, when that happens, the players may not have to rely on the casino’s mercy. They can complain to the regulator, and even sue the casino if they are not satisfied with the regulator’s response.

Again, not at all. Some regulators have an outstanding reputation for protecting the rights of the players. However, several regulators offer license only to attract tax revenue and do not care about player rights at all.

UKGC, Malta Gaming Authority, and Gibraltar Gaming Commission are some of the best regulators in the iGaming industry. Curacao and Costa Rica have the least reputation.

No. Licensed online casinos are generally required by most regulators to mandatorily separate their operating funds and player funds. So, even if the casino goes under, your money is still safe.

Online casino regulators have several core objectives. One of them is to ensure that the casino is not indulging in any money laundering activities, unlawful business practices, and unfair games. They ensure this by thoroughly verifying everything from the top management’s history and finances to the casino’s software.

No. But, new businesses can partner with license-holders to obtain their casino software and games as white label solutions, and offer the casino services under their license.

Popular Online Gambling License Authorities in the World

There are numerous authorities across the world with varying degrees of reputation that offer online gambling licenses to casinos. However, some regulators are a lot more popular than others, be it because of their player-friendly policies or casino-friendly laws.

Here are the top ones:

  • Curacao Gaming Control Board
  • Malta Gaming Authority
  • United Kingdom Gambling Commission
  • Gibraltar Gaming Commission
  • Alderney Gambling Control Commission
  • Belgian Gaming Commission
  • The Isle of Man Gambling Supervision Commission
  • Danish Gambling Authority
  • Autonomous Administration of the State Monopolies (AAMS) in Italy
  • Estonian Tax and Customs Board
  • Kahnawake Gaming Commission (KGC) in Canada

Types of Licenses

Every regulator draws up its own list of online casino licenses based on several factors that make the best sense to their local industry, potential tax collections, and regulatory environment. However, the following types of licenses are the most common types of gambling licenses:

  1. Operator License – This gambling license is issued to online casinos and casino operators who actually run the casino website and accept players. These licenses tend to be long-term licenses often 5 years of validity or longer. Typically, operator licenses can offer a variety of online casino games, including slots, video poker, table games, live casino games, bingo, keno, and so on to the players.
  2. Software Licenses – These licenses are issued to software developers who supply all the games and software that run the online casino. The holders of software licenses can provide their products to casinos (holders of operator license). However, they cannot cater to casino players directly.
  3. Betting Licenses – Betting licenses are essentially operator licenses for sports betting sites or sportsbooks. These are essentially online bookies who accept bets and wagers from punters. The sites can offer betting options on a variety of events, including sports, political events, and so on.
  4. Lottery License – For many reasons, regulators give lotteries special treatment and treat them as disparate products. Therefore, businesses must acquire a special license for offering lotteries. Even in many jurisdictions where online gambling licenses are offered, lottery licenses are rare to come by.

While these are some of the standard gambling licenses, some regulators offer unique licenses that aren’t offered anywhere else. Take Curacao, for instance. Curacao government issues Master Licenses to businesses, and the Master License holders, in turn, can issue sub-licenses to other companies. Likewise, there are one-time event licenses, associate licenses, restricted use licenses, and so on.

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