Category: Gambling Licenses

Information on gambling licenses is prominent in the blog and news articles section of our website.

Our Information:

While we try and keep our information updated as best as possible.

There are many jurisdictions to keep tabs on so keep checking back for the updated information.

We cover topics such as:

  • gambling licenses
  • gambling jurisdictions
  • gaming authorities
  • web hosting solutions
  • white label solutions
  • banking options

Webhosting:

We offer off the shelf and bespoke web hosting solutions for all manner of websites including gaming and corporate companies.

Contact Us:

Feel free to drop us an email if you are unsure of something or require some clarification.

Where can a Curacao gambling license be used?

Posted on by Brendan John
Gambling license report

If you are thinking of getting a Curacao Gambling License, you will better understand how and where a curacao gambling license can be used once you understand the seven types of gambling jurisdictions which are seen across the world.

  1. Jurisdictions which allow no form of online gambling for example China, Turkey, UAE, Brunei, Cambodia, North Korea, Japan, Singapore, Quatar, Lebanon, Poland (Note, this list may not be accurate and is provided as a reference).
  2. Jurisdictions which allow only licensing for online gambling operators but do not allow them to provide services within the country and does not allow any foreign license holders also to operate.
  3. Jurisdictions which allow only licensing for online gambling operators but do not allow them to provide services within the country, but they impose no restriction on any foreign license holders to operate. (ex. Costa Rica).
  4. Jurisdictions which have no laws on online gambling (ex. India).
  5. Jurisdictions which allow online gambling only through operators registered in the same country or state (ex. Some states in the USA).
  6. Jurisdictions which allow online gambling by its residents through licensed operators from selected countries but have no domestic laws (ex. Most EU Countries which allow EU licensed operators to accept customers from their countries).
  7. Jurisdictions which allow online gambling by its residents through licensed operators from the home country and selected other countries (ex. Most EU Countries which allow EU licensed operators to accept customers from their countries).

Now, no online gambling operations are possible with a Curacao license in the first two categories of countries (1,2) and countries which fall under Category 5.

So, with a Curacao license, operations will be possible in countries which fall under Category 3 and a few countries under Category 4, 6 and 7. This also means that for the other countries under Category 4, 6 and 7 you will have to acquire specialised licenses.

To Qualify the above

The Curacao license strictly forbids the following countries Aruba, Bonaire, Curacao, France, The Netherlands, Saba, Statia, St. Maarten, Singapore, USA.

Tomiya All other countries are fair game.

Advertising may be limited

Your operation will be limited by its ability to legally advertise in some jurisdictions without a local license. For instance, Australia is not forbidden by the Curacao license, however, you will not be able to take out a centerfold advertisement in their local newspapers without Bruce, understandably, getting upset.

Payments may be limited

In addition to advertising restrictions, your operation will be limited by its ability to accept payments in some jurisdictions. Payment service providers will often block card payments from jurisdictions where you need a local license.

Cryptocurrencies are a curve ball

Bitcoins and other Altcoins changes the above somewhat in that, there is no way for regulators to regulate its use and in some jurisdictions they are not considered a “currency”. In these instances, you would be able to offer your service to anyone able to pay with cryptocurrency so long as you do not actively target the forbidden countries as stipulated by the Curacao government.

How to get a license

We work with GamblingTec.com, a white labeling service provider which will be your fastest route to getting a gambling license.

Additionally we offer a Curacao and a Malta licensing opportunity which may suite your needs.

Get in touch, we are a wealth of information and can help you make an informed decision.

I have years of experience with gambling hosting, casino games, Curacao licensing and online casinos

Contact us for a quote

Malta Controlled Skill Game regulation

Posted on by Brendan John

As of the 24th January 2017 the Malta Controlled Skill Game regulation has been in force. The MGA has been entrusted with the governance and regulation over the skill games sector which is covered in the Lotteries and Other Games ACT, article 78.

The MGA is empowered to regulate the sector in terms of a number of public policy objectives including consumer protection, fairness of the game and the prevention of fraud.

The purpose of the Controlled Skill Game regulations is to address a range of games which vary substantially from typical games of chance with the aim of differentiating between games that require state intervention and those that do not.

The MGA is empowered to issue a “Controlled Skill Game” license which is valid for 5 years (and renewable there after). The license additionally covers Controlled Skill Game Suppliers who offer games on a B2B basis. The license is subjected to a number of requirements including vetting of the persons behind the business, financial system auditing to ensure the system is sound and secure, measures are in place to prevent fraud and money laundering, segregation of player funds and a consumer centric approach to the business.

What fees apply to Controlled Skill Games?

License holders are subjected to administrative fees and a 5% tax over gaming revenue.

What games fall under the Controlled Skill Games license?

Games which are based on a random number generator at the start of the game, such as cards or dice, but which rely on skill as the game progresses, such as is in the case of games such as belote, tarot, rummy or backgammon, should be licensed, but in such a way as to be deemed different to gambling.

How do I know my game is a game of skill?

Regulation 3 of the regulation deals with classification of a game and criteria covers:

  • the presence of random draws and their effect on the outcome;
  • whether the game is played for money and, or prizes with a monetary value;
  • whether participation in a game involves any form of monetary commitment, or commitment of a monetary value
  • the possibility of any negative social impact of the game;
  • whether the activity is closely associated with games of chance and/or gambling;
  • the duration of each event, competition or match;
  • whether, on the face of it, a skilled player is able to win more than an unskilled player;
  • whether a player’s chance of winning is significantly increased by experience in playing the game
  • whether skill can be acquired through training, experience, reading literature or other educational material;
  • whether a rule-set or format that is used further nullifies the effect of any element of chance;
  • whether the game is played against other human players, or otherwise;
  • the level of interaction between the players, the level of interaction between the operator and the players, and the level of intervention by the operator during the event, competition or match; and
  • the complexity of the game, including the amount of player choices and their potential effect on the outcome, and the strategies involved.

Provided that when the Authority determines, basing itself on any one or more of the above criteria, that an activity is more akin to a game of chance or a game of chance and skill than to a skill game as intended by the Act and any regulations made thereunder, then such an activity shall not fall within the
parameters of this Schedule

Fantasy sports, for instance, will now fall under a Controlled Skills Game license

I have a gambling license, do I need a Controlled Skill Game license as well?

According to the paper titled Digital Games of Skill with Prize (December 2015) it is not worth getting a classification for your skilled games.

An operator offering both traditional games of chance via the internet, as well as games of mixed chance and skill, such as board games, would rather have such games regulated under their gambling licence, as the burden and
expense of proving that such games are more skill-based is not worth the recategorisation.

GamblingTec.com can power your games of skill

While regulations in most jurisdictions are still green, a time will come when games of skill will need to be regulated. In cases where they do, you are free to ingerate your games into the GamblingTec.com platform which operates off a gambling license.

For more information: licensing for game developers

I have years of experience with gambling hosting, casino games, Curacao licensing and online casinos

Get in touch

Curacao Permanent Establishment

Posted on by Brendan John

Curacao offers great tax incentives to e-commerce companies looking to be based from the island. This means you pay 2% tax as apposed to 40% tax. Apart from the great tax incentive the island also offers a fantastic telecommunication infrastructure makinging it an ideal location to run an e-business. However, permanent establishment is required and this is what will influence certain aspects of your business.

What companies require Permanent Establishment?

In Curacao a local company can be given special status known as “E-Zone status”, this is a company operating from one of the local economic zones. The most popular types of comapnies being formed in Curacao are remote gambling companies who setup due to the affordable curacao gambling license. These companies are generally foreign owned and it is vitaly important that they adhere to PE rules in order to ensure they satisfy permanent establishment criteria.

Permanent Establishment and owning servers in Curacao

In terms of web hosting, in order to meet Permanent Establishment (PE) requirements you must own hardware (if you are runnin an E-Zone company). This means you must own a physical machine on the island and not use rented servers. For customers wanting to benefit from our cloud infrastructure and meet PE regulations at the same time, we have created an affordable colocation-cloud product. Essentially this means you buy a server and host it with us, and we offer a VPS as well as a shared hosting package as part of the deal.

Why can I not just rent a server?

The reason is that your new Curacao based E-Zone business must satisfy permanent establishment criteria and one of those criteria is to own physical property on the island. If not, your country of residence may claim your E-Zone company as a local company due to a lack of substance and apply local taxes to your business.

By owning infrastructure, having an office address, local directors, telephone numebrs and staff on the island etc. your E-Zone company is permanently established and legal requriments are satisfied. In this case, it would be hard to prove that your company is somehow not a CW E-Zone entity.

Get in touch:

I have years of experience with gambling hosting, casino games, Curacao gambling licensing and online casinos

FURTHER INFORMATION ON CURACAO GAMBLING LICENSES

We wrote an article on Curacao Gambling License which may be of interest to you should you be looking for further information.

Cost of a Malta gaming license for your casino

Posted on by Brendan John

Gambling license report

So you are looking for a Maltese gambling license. This document goes over the costs and processes in order to obtain the license.

Berrahal NOTICE

Malta is not the cheapest jurisdiction to obtain a casino license in, if you are looking for a more affordable license then we suggest taking a look at a Curacao gambling license which is better suited to tighter budgets.

Why Malta?

Malta is part of the European Union which makes it a very attractive jurisdiction to obtain a gambling license in. It comes with tax incentives and an expert work force.

What this document covers

This document covers the end to end application process with the Malta Gaming Authority (“MGA”) as well as an overview of the related prices for the setup and the maintenance of a gambling company in Malta.

  1. Malta Gaming Authority (MGA) license types
  2. Malta gambling license application process
  3. Malta Gaming Authority fees
  4. Gaming Tax as Applicable by the MGA
  5. Share Capital Requirements
  6. Administration services
  7. Key official Services
  8. On-going operation
  9. Financial Audit
  10. How long does it take to get the Malta gambling license
  11. How do I find out if a casino is licensed in Malta?

Malta Gaming Authority license types

The Malta Gaming Authority offers four types of remote gaming licenses:

  • Class 1 – a remote gaming licence (examples of Class 1 licences would include casino-type games and online lotteries) whereby operators manage their own risk on repetitive games. It is also possible to have a Class 1 on 4 licence whereby the Class 1 licensee operates its games on the software and in certain cases through the equipment of a Class 4 licensee;
  • Class 2 – a remote betting licence (an example of a Class 2 licence would include fixed-odds betting) whereby operators manage their own risk on events based on a matchbook. It is possible to have a Class 2 on 4 licence whereby the Class 2 licensee operates its games on the software and in certain cases through the equipment of a Class 4 licensee;
  • Class 3 – a licence to promote and/or abet remote gaming in or from Malta (an example of a Class 3 licence would include poker rooms and peer-to-peer (P2P) gaming). It is also possible to have a Class 3 on 4 licence whereby the Class 3 licensee operates its games on the software and in certain cases through the equipment of a Class 4 licensee;
  • Class 4 – a licence to host and manage remote gaming operators, excluding the licensee itself, whereby software vendors provide management and hosting facilities on their platform. In essence this is a business to business (B2B) gaming licence.

Malta gambling license application process

In order to prevent any unnecessary delays in the process, our clients will undergo a pre-application process together with the Malta Gaming Authority (MGA). This will ensure the quality of the application and will be followed by the actual application process that consists of a number of steps:

  1. 1) The MGA will conduct a fit and proper exercise by assessing all information related to those involved in financing and management and on the business viability of the operation. In addition the MGA conducts integrity investigations with national and international regulatory bodies and law enforcement agencies.
  2. 2) The MGA conducts an in depth financial analysis of the applicant’s business plan. It is expected to include a detailed forecast of the operation together with details pertaining to marketing and distribution strategies, HR planning, and growth targets.
  3. 3) Operational and Statutory – The applicant is examined on the instruments required to conduct the business. This process includes examining the Company’s incorporation documents, the games, the business processes related to conducting the remote games, the rules, terms, conditions, and procedures of the games, the application architecture, and the system architecture.
  4. 4) The MGA will inform the applicant that the application was successful and will invite the applicant to implement onto a technical environment in preparation for going live. 60 days are allowed for the applicant to complete such operation. Within those 60 days, the applicant may request an external systems audit where the live environment will be examined against the proposed application. Once the certification process is completed, a five-year license will be issued by the MGA.
  5. 5) Once the licence is issued, an independent third party will be contracted by the MGA to perform a number of compliance audits of the licensees operation throughout the first and the third year of operation.

Malta Gaming Authority fees

Description Fee
Fee for a new licence of any class €5,000.00
Application fee for the renewal of any class €5,000.00
Systems Audit €2,500.00
Compliance Audit €3,500.00

Annual licence fee

The annual license fee is paid to the MGA, previously this was a fixed fee for any class however as of 2018 this fee is changing as follows.

For a class 1, 2 or 3 license the annual fixed MGA fee is €25,000 and for a class 4 license €10,000. If a licensee has multiple classes of licenses (1, 2 or 3) the annual combined fixed fee is calculated on Gross Gaming Revenue:

Revenue Fee
Fee for a new licence of any class €5,000.00
-5Mln EUR €25,000.00
5mln – 10mln EUR €30,000.00
+ 10mln EUR €35,000.00

Compliance contribution

The MGA has introduced this new fee which is based on Grosse Gaming Revenue and has minimal annual contributions which differ per class:

Class 1: Annual Compliance contribution – Minimal fee €15.000, Max €375.000 Rate
For every euro of the first €3,000,000 1.25%
For every euro of the next €4,500,000 1.00%
For every euro of the next €5,000,000 0.85%
For every euro of the next €7,500,000 0.70%
For every euro of the next €10,000,000 0.55%
For every euro of the remainder 0.40%
Class 2: Annual Compliance contribution – Minimal fee €25.000, Max €600.000 Rate
For every euro of the first €3,000,000 4.00%
For every euro of the next €4,500,000 3.00%
For every euro of the next €5,000,000 2.00%
For every euro of the next €7,500,000 1.00%
For every euro of the next €10,000,000 0.80%
For every euro of the next €10,000,000 0.60%
For every euro of the remainder 0.40%
Class 3: Annual Compliance contribution – Minimal fee €25.000, Max €500.000 Rate
For every euro of the first €2,000,000 4.00%
For every euro of the next €3,000,000 3.00%
For every euro of the next €5,000,000 2.00%
For every euro of the next €5,000,000 1.00%
For every euro of the next €5,000,000 0.80%
For every euro of the next €10,000,000 0.60%
For every euro of the remainder 0.40%
Class 4: Annual Compliance contribution – Minimal fee €5.000, Max €500.000 Rate
For every euro of the first €2,000,000 0.50%
For every euro of the next €3,000,000 0.75%
For every euro of the next €5,000,000 1.00%
For every euro of the next €5,000,000 1.25%
For every euro of the next €5,000,000 1.50%
For every euro of the next €10,000,000 1.75%
For every euro of the remainder 2.00%

Gaming Tax as Applicable by the MGA

  1. Class 1 – €4,660.00 per month for the first six months and €7,000.00 per subsequent month;
  2. Class 1 on 4 – €1,200.00 per month;
  3. Class 2 – 0.5% on the gross amount of all bets accepted;
  4. Class 3 and Class 3 on 4 – 5% of real income;
  5. Class 4 – No Tax levied for the first six months of operation, €2,330.00 per month for the subsequent six months, and €4,660.00 per subsequent month for the entire duration of the licence

Share Capital Requirements

When incorporating the company on Malta, the MGA requires that companies operating a class 1 or 2 license have a share capital of €100.000. For class 3 or 4 license holders this amount is €40.000. Companies applying for multiple licenses amounts will be cumulative.

An idea of corporate setup fees for a Maltese gambling company

Description Fee
Incorporation Fee (This includes name reservation, customer due diligence process, M&As, Share Register, VAT application, income tax application, excl. MFSA Registration Fee) €1,200.00 – €2,000.00
Registered office (optional) €500 – €1000.00
Corporate Director (optional) Price on request
Company Secretary €500 – €1000
Annual Compliance (KYC) Maintenance €250 – €500
Management Fee Package €3,000.00 – €5,000.00
Assistance opening a bank account €1,000.00 – €2,000.00

Administration services

Description
Book Keeping
Legal Administration
The legal and financial administrational services will be charged against the applicable hourly rates which may vary from €60 to €250 per hour, depending on the experience of the employee involved.

The above fees are per class of license.

Typically the fees will include assistance with the drafting of the business plan, financial prognosis, and system documentation.

Key official Services

A Key Official is a natural person, approved and licensed by the MGA to act as a main point of contact towards the said authority on behalf of the gaming company licensed in Malta. Key Official services cost on average €1,000 per month. This will also include the preparation and submission of the player liability reports of the company, gaming tax reports, the quarterly returns, completion of any other returns due by the company (such as questionnaires/consultation papers) to the MGA amongst other duties generally incumbent upon directors by application of the law.

On-going operations

If preferred a service provider can assist with the on-going daily financial and legal matters of the company. The type of service will depend on your personal preferences and below is an example of the services a gaming company may expect to be made available to them:

  • Filing of the annual returns
  • Preparing and processing bank transactions
  • Preparation of bookkeeping and related annual financial statements
  • Company VAT(quarterly), annual tax and tax refund filings
  • Payroll services
  • Mini One Stop Shop (Moss) VAT compliance
  • Preparation of dividend warrants
  • Certification of documents
  • Legal administration (e.g. drafting/reviewing contracts or agreements)
  • Liaising with the auditors
  • Residency applications and opening of bank accounts for employees

We would recommend negotiating fixed monthly fees to cover the above services allowing you to budget appropriately.

Financial Audit

Audit fees (external auditor) start at €1,500. The actual fee highly depends on the amount of activities within the company.

How long does it take to get the license?

Application processing may take between 4 to 6 months. The time taken is dependent on the timely and complete provision of the documentation required.
 
Please be aware that Malta has a VAT rate of 18% which is not included in our cost estimates.

Where can a Malta Gambling license be used?

Casinos licensed under a Malta Gambling License can offer services to players in over 180 countries.

It is far simpler to list the countries where the Malta Gambling License can not be used: USA, Australia, China, Hong Kong, Macau, Turkey, Iran, Iraq, Syria, Indonesia, and Malaysia. Some European countries are barred too: France, Spain, Italy, Portugal, Austria, Belgium, the Czech Republic, Slovenia, Lithuania, Estonia, and Denmark.

How do I find out if a casino is licensed in Malta?

It is not uncommon for casinos to “pretend” to have a Malta Gambling License. If you want to find out for sure if a casino is indeed registered and licensed in Malta you can visit
the MGA Gaming License Register for further information.

I have years of experience with gambling hosting, casino games, Curacao licensing and online casinos

How to license my gambling app

Posted on by Brendan John

So you have developed an iOS gambling app for the app store and you are now wondering how on earth you are going to license it?

Do I need a gambling license for my app?

According to the app store, you do:

5.3.4 Apps that offer real money gaming (e.g. sports betting, poker, casino games, horse racing) or lotteries must have necessary licensing and permissions in the locations where the App is used, must be geo-restricted to those locations, and must be free on the App Store. Illegal gambling aids, including card counters, are not permitted on the App Store. Lottery apps must have consideration, chance, and a prize.

How do I license my game for online gambling?

Essentially you have three options:

  1. Apply for a gambling license in a relevant jurisdiction
  2. Apply for a white label from an existing gambling company
  3. Use a gambling games licensing service provider

We have written about costs of setting up a gambling license which you can find here: costs of a Curacao license to get an idea of what you will be spending.

To obtain a white label, you would need to find a company willing to offer this to you. It comes with certain criteria such as handing over your domain name (where applicable) and payments being settled to the whitelabel holder.

The last option is likely the best option which is to use a Gambling Games service provider. This is basically a company with pre-existing licensing, payments, etc. who offers licensing as a service. All you do is integrate your app into their API and you are ready to do.

There are some pre-requisites such as having your game tested for fairness and RNG certification to deal with however these are relatively simple to get done. We work with GamblingTec.com who offers gambling licensing as a service to game developers

Need more information?

I have years of experience with gambling hosting, casino games, Curacao licensing and online casinos

Get in touch!

Cheap gambling license

Posted on by Brendan John

Cheap gambling license

Is Costa Rica a good place for a cheap gambling license?

The cheapest license, which allows entrepreneurs to run a casino, is granted by Costa Rica. However this jurisdiction issues a Data Processing License and not an actual “Gambling license”. While this may at first appear to be a “cheap gambling license” option, this is a contentious point.

The problem with the Costa Rica gambling license is its reputation. While banks and payment solutions do provide services to Costa Rica based gambling companies,
they will be far and few between. The impact of this on your business will be unstable banking relationships, hard to find card processor and e-wallet solutions and
international pressude and legislation that will slowly get in your way. In our opinion, cheap is not neccessarily better.

Is Curacao a good place for a cheap Gambling License?

Curacao is an offshore zone and is a respected jurisdiction by the gambling community. We have written a number of articles on Curacao gambling licenses which we would encourage you to read. In addition to this take the time to read our article on the cost of a Curacao gambling license.

In our opinion, this is the best location to get a cheap gambling license. But be warned, there is no such thing as “cheap” as this is a highly regulated business that will demand that you comply with local and international laws.

If however you are looking for an alternative or a specialised service, we would encourage you to take a look at GamblingTec.com which offers a platform as a service which you can use to license your casino or game or unique gaming idea.

You can find further comments on cheap gambling licenses here: Quora – Cheap Gambling License

How to get your cheap gambling license?

Feel free to get in touch with us and we will happily help you along with your decision making process!

I have years of experience with gambling hosting, casino games, Curacao licensing and online casinos

Start your Curacao Gambling business today!

Posted on by Brendan John

Start selling from Curacao!

About us

We have worked in the Curacao e-commerce space since 2006. We are specialists in licensing, banking, payments, gambling software, RNG certification, settlements, company formations and much more.

We have a lot of knowledge and we use this to help our clients start their business from Curacao.

The biggest mistake you can make?

The biggest mistake you can make is not giving me a call. I will tell you upfront what to do, how to do it and who to use and most importantly, why…

I am on Whatsapp: +447498105896 (a single message away!).

I have years of experience with gambling hosting, casino games, Curacao licensing and online casinos

How to get a gambling license in South Africa

Posted on by Brendan John

Gambling license in South Africa

Gambling within South Africa was largely restricted for many years, dating back to around 1673. Almost all forms of gambling were officially banned in 1965 with the passing of the Gambling Act. Horse racing, which was still considered a sport for many years, was however still legal, and the only place where people could place bets. This ban on gambling meant many illegal casinos began to pop up. By 1995 there were an estimated 2000 illegal casinos within South Africa. Luckily, with the new democratic government in 1994, the ban on gambling was lifted with the National Gambling Act. By 1996 the first legally licensed casinos were established and a single national lottery was launched. The National Gambling Act was the start of a diverse gambling community within South Africa.

Gambling and licensing

Gambling within SA is highly regulated and is done so by the National Gambling Board as well as the gambling board of each individual province.

The entire process of applying for a license is relatively straightforward. You can apply for a national or provincial license. A national license is generally for those applying as a manufacturer, supplier, maintenance supplier, or for those wanting to work within the gambling industry. A provincial license is simply valid within the single province in which it was issued and is better suited to individual casinos.

Both licenses may be applied for and issued through the provincial gambling boards and can be done by visiting the appropriate website (as listed below) and downloading the forms. The websites are quite easy to navigate and the entire application process will take anywhere between three months to a year.

Cost of a South African Gambling License

The cost of applications varies from province to province. Here are two examples:

Western Cape
Casino operator new license application fee: R 479 300.00
Casino annual licensing fee: R 239 650.00
Gambling employee fee (new application and yearly fee): R129
Bookmaker new license application fee: R11 977
Bookmaker annual licensing fee: R2403

North West Province
Casino operator new license application fee: R230 000
Casino annual licensing fee: R 100 000
Casino employee licence fee: R500
Bookmaker new license application fee: R6000
Bookmaker annual licensing fee: R5000

Other considerations
A big part of obtaining a South African gambling license is the probity process. This, in short, is a KYC process on steroids and will take up the majority of your time, effort, energy and money. Legal fees to complete this process can amount to hundreds of thousands of rands. While we understand the reason for the process, when compared to other jurisdictions such as the UK, Malta and Curacao, the same process is less bureaucratic and less authoritarian in their approach which is the reason why they have a much more vibrant and active gaming industry.

Maintaining Your License

Licenses are generally valid for different time periods across the different provinces. To maintain your license you will need to pay a set yearly fee, as given in the above examples. Likewise, if you wish to work at another casino or to move the premises of your existing casino, then you will need to apply for such. Employee licenses are linked to the position which they hold with a specific operator. Every Gambling machine or device must also be registered in order to be considered legal.

National licensees will need to comply with the applicable provincial law within whichever provinces they are conducting business. Provincial licensees will obviously be expected to do the same.

Failure to pay taxes, levies or fees will jeopardise your license as will non-compliance with any of the laws set out in the National Gambling Act. A person convicted of an offence in terms of the National Gambling Act is ‘liable to a fine not exceeding R10 000 000, or to imprisonment for a period not exceeding 10 years, or to both a fine and such imprisonment.
If a licensee is in breach of a condition of a license they are ‘liable to an administrative penalty not exceeding 10% of the annual turnover of the licensee.

You may surrender your license by choice via written notification to the provincial licensing authority.

Reposting Requirements

Suspicious or illegal activity can be reported directly to the respective provincial gambling boards or the National Gambling Board itself.

Anti-money Laundering

South Africa has three acts which relate to Anti-money laundering: the Prevention of Organised Crime Act (POCA), Financial Intelligence Centre Act (FICA), and The Protection of Constitutional Democracy Against Terrorism and Related Activities Act (POCDATARA).
The main duties of accountable institutions include:

  • Identifying and also verifying clients
  • Reporting any suspicious transactions
  • Keeping records
  • Training staff
  • Reporting cash transactions over the prescribed limit
  • In conclusion, formulating and implementing internal rules

Each legal gambling institution must ensure that all the necessary policies, procedures and systems are in place whilst ensuring full compliance with the FICA Act.
South Africa has a Financial Intelligence Centre (FIC) which is run under the FICA Act. There is also a Money Laundering Advisory Council who works alongside FIC and advises the Minister of Finance. All information regarding money laundering activities must be reported to FIC who will then hand over to the appropriate authorities.

TAX

Corporate tax in South Africa is set at a flat rate of 28% for all companies.
Although a withholding tax on winnings has been proposed since 2011, nothing has been set in stone.

Software Testing and Online Gambling

Any machine or device which needs calibration or certification must be tested by a licensed testing agent. The agent will need to make sure that the machine/device is compliant with the applicable standard. They record all test results and issue a report. The South African Bureau of Standards must then analyse the results and if found compliant they issue a letter of certification.

Online gambling is still illegal within South Africa except for online betting via a licensed South African bookmaker. Both the operation and advertisement of online casinos within South Africa are illegal acts.

Contact the South African Gambling Commission

For more information:

1. Gauteng:
www.ggb.org.za

2. Western Cape:
www.wcgrb.co.za

3. Eastern Cape:
www.ecgbb.co.za

4. Free State:
www.gla.fs.gov.za

5. Kwazulu Natal:
www.kzngambling.co.za

6. Mpumalanga:
www.mgb.org.za

7. North West:
www.nwgb.co.za

8. Limpopo:
www.lgb.org.za

9. Northern Cape:
www.ncgb.co.za

Alternative to a South African Gambling License

A curacao based gambling license is perfect for your business if you wish to offer services abroad. The license is regulated by the Government of Curacao and is accepted by all banks and payment service providers.

We work with the local authority assisting our clients with their gambling license needs, get in touch on Skype, WhatsApp or Email for further information.

I have years of experience with gambling hosting, casino games, Curacao licensing and online casinos

How to start an online casino and gambling business

Posted on by Brendan John

How to start an online casino and gambling business

Our job is to show businesses how to start an online casino and gambling business. We work with Curacao and Malta based gambling licenses, and offer casino server management and infrastructure as well as the underlying games and expertise.

Your first step to starting your online casino and gambling business is to understand the various ways to get going.

  • Do you want to be an affiliate promoting other peoples gambling products?
  • Do you want to setup a white label casino using soneone elses license?
  • Or do you want to own the license, the hardware and the brand?

Lets take a look at the various options

What is a casino affiliate?

A casino affiliate is someone who promotes someone elses casino. You build a website or blog, write about casino games and promote similar games using affiliate links. Typically you will earn a commission of between 20 and 40% of your players earnings. You can also opt for a much higher once off payment (CPS).

Often the casino will provide to you all the marketing material you coule ever need.

What is a white label casino?

A white label casino is one that uses the license of another casino, their merchant accounts and their games. A white label is great because you do not have to go through extensive due diligence tests nor do you have to go through lengthy applicaiton processes in order to start your casino.

What is a licensed casino?

A licensed casino is where you have setup the underlying infrastructure, applied for licenses, setup payment solutions and integrated games with game providers.

How we can help you start your casino?

We work with all the options listed above and can advise you on how to get going.

  1. Should you be interested in a fully licensed casino, we work with both Curacao licenses and Maltese licenses.
  2. If you are on a budget and looking for a cost effective solution, we can help you setup a white label casino.
  3. If you are a game developer looking to get your game licensed, then visit GamblingTec.com that offers casino licensing for game developers.

Contact us

I have years of experience with gambling hosting, casino games, Curacao licensing and online casinos

Need some help or guidance, why not get in touch

Curacao Gambling License

Posted on by Brendan John

Did you know? Your best opportunity for a gambling license is to apply for a Curacao gambling license which is reliable, affordable and widely accepted.

(NOTE: If you need advise, my contact details are on the top right corner of this page)

What drives many of my clients to the Curacao License is the fact that it is a good general license, perfect for startups and casino game developers. Once you have the license under your belt, there is nothing stopping you from applying for a regulated license such as the UK gambling license.

What I love about the Curacao gambling license is that you can run any type of gambling venture under one license. This non-complicated approach to running your business is a major plus especially for companies producing new and innovative games that may have no classification under a more traditional licensing regime.

You can run your rng casino, a poker room, bingo games, sportsbooks, lottery games, crash games, sweepstakes,  raffle, crypto games or games of your own invention under the Curacao gambling license and we love it for this!

Bitcoin and cryptocurrency casinos tend to choose Curacao since the license is more inclusive than most others. We view this as a good thing since we believe in innovation.

What we cover

I am regularly asked the following questions and so I have taken the time to answer them:

  1. Who issues Curacao gambling licenses?
  2. Where is the Curacao gambling license valid?
  3. What does the Curacao gambling license cost?
  4. How long does it take to get the Curacao gambling license?
  5. What casino business can I run under a Curacao gambling license
  6. What taxes will I need to pay with my Curacao gambling license?
  7. How do I apply for a Curacao gambling license?
  8. Can a foreign company apply for a Curacao gambling license?
  9. What are the pros and cons of a Curacao gambling license?
  10.  Who issues Curacao gambling license?
  11. What is a white label license?
  12. I have written a new game, can I start a casino and use it under the Curacao gambling license?

Who issues Curacao gambling license?

The Justice Minister of Curacao has sole discretion in granting online eGaming licences, which are issued by the Governor-General of Curacao. Since 1996 there have been four Master Licences awarded; respective holders are:

  1. Antillephone NV #8048/JAZ (our preferred choice)
  2. Cyberluck Curacao N.V. (Curacao-eGaming) #1668/JAZ
  3. Gaming Curacao (GC) #365/JAZ
  4. Curacao Interactive Licensing N.V. (CIL) #5536/JAZ

A Master Licence holder may grant Sublicences to online casinos and other gambling sites. Sublicensees are entitled to the full privileges granted to the Master Licence holder, with the exception that they may not issue Sublicences of their own.

A single Licence covers all games of skill, chance, and wagering as well as all related peripheral activities such as software providers, service providers, network operators, platform operators, affiliates, marketers, and white-label operators.

NOTE: From 2023, licenses will be issued from a single, unified regulatory body (or so we have been told).

Where is the Curacao gambling license valid?

Curacao gambling operators are expressly forbidden, under Curacao law, from operating in the following jurisdictions: Aruba, Bonaire, Curacao, France, The Netherlands, Saba, Statia, St. Maarten, Singapore, and the USA.

This does not mean all other jurisdictions are “open season”, it simply means that they are not banned by the Curacao regulator.

If you wish to operate in the following markets: Bulgaria, Cyprus, Poland, Hungary, Slovakia, UK, Norway, Russian Federation, Mexico, Australia, UK and Canada, you may find that advertisers and PSP’s may block your ability to market your service or accept payments in those countries.

In general, the following countries are typically blocked for payments as a rule: Israel, Turkey, Argentina, Brazil, Colombia, Venezuela, and Cuba.

I additionally advise my clients to block Nigeria, Ghana and a number of other African countries where fraud is rife.

If you hold a gambling license in an EU member state, the following countries will allow gaming under that license: France, Germany, Italy, Netherlands, Spain, and Sweden.

What does the Curacao gambling license cost?

Depending on which master license holder you work with, the Curacao gambling license costs anything from €6,000 to €12,000 per annum.

But the right question to ask is: “What does it cost to maintain a Curacao gambling license?”.

To get the license you require a Curacao company and local management. The costs of this on paper is around €6,500 per annum but in reality you are going to spend between €15,000 and €25,000 in legal and administrative costs. Easy to do considering most companies will charge €200 EUR per hour in fees and this adds up fast.

Banking services are expensive so expect at least €2,000 per annum in banking costs.

You will also need to own hardware on the island in order to satisfy permanent establishment requirements (PE).

  1. Server cost: EUR 3000 + shipping
  2. Hosting costs: EUR6000/annum

Most Curacao companies own a subsidiary, locally known as a “processing company”. The purpose of this company is to sign contractual agreements with EU based payment service providers. Generally speaking these are setup in Cyprus and can add significant costs to your casino business with the wrong management company behind the wheel.

How to apply for the Curacao gambling license?

Your local representatives (managing director) will be responsible for  applying for your gambling license once your Curacao company has been formed.

Before you setup your company and apply for the license, your business concept will need to be approved by the regulator. Once approved, you will then need to go through a lengthy eGaming application process.

The process will ultimately take 6 to 8 months to complete and involves background checks, criminal record checks, proof of residence, proof of income/investment amongst other things.  In my experience, gathering, certifying and applying for the required documents takes time.

Also note, if your casino concept is non-traditional, the process can take longer as it will need to be approved by the regulator.

Here is the basic Curacao licensing process:

  1. Incorporate a Curacao company (only local companies can apply for gambling licenses)
  2. The Curacao company will apply for a sublicense from a Master License holder
  3. Purchase hardware and sign up with local hosting (you are required to own physical hardware on the island)
  4. Apply for company bank accounts (even if you plan to a run a Bitcoin casino, you still need to pay your bills using traditional currency)
  5. Apply for e-wallets, PSPs, etc. (you will need reliable processors)

How long does it take to get the Curacao gambling license?

It takes no more than two weeks to get the actual Curacao gambling license on condition all the paperwork is in place and your casino concept has been approved.

It takes around 6 to 8 months + to get the company setup with the required due diligence documents, business plans, AML documents etc.

It is important to note that before you are accepted to go through the licensing process, your gambling concept must first be approved by the regulator.

What casino businesses can I operate under a Curacao gambling license?

Curacao has one license which covers all genre of gaming.

  • Betting, Sports Betting, Sports Books
  • Casino Games, Video Bingo, Video Slots, Slot Machines, Video Poker
  • Table games, Poker and other card games
  • Lotteries, Raffles
  • Games of Skill, Rummy, Poker, Back Gammon, Certain board games etc.

Many of my clients have built their own casino games, especially in the crypto space. It is important to understand that if the regulator does not understand your game, your game is not going to be approved for use under a Curacao license.

Part of what I do is to assist my clients with their concepts and to ensure that the offering is clear to the regulator. 

What taxes will I pay under a Curacao gambling company?

Curacao has a 0% tax on foreign transactions. You will pay 6% VAT on local invoices and the normal tax rate (40%) on income generated locally.

It is important to realise that while there is mostly 0% tax, a large proportion of a Curacao gambling companies earnings is used to pay for local Curacao services which can be quite a substantial amount especially for smaller gambling companies which makes up the majority of the gambling ecosystem.

How do I apply for a Curacao gambling license?

Get in touch, I will assist you with the end to end process. My details are at the top of this page.

Can a foreign company apply for a Curacao gambling license?

No it can not.

If you do not wish to establish a Curacao gambling company, you can opt to setup a white label casino which is generally offered by an existing licensed Curacao gambling company.

What are the pros and cons of the Curacao gambling license?

Pros:

  1. Lower costs when compared to other jurisdictions.
  2. One license fits all.

Cons:

  1. A lower perceived standards when compared to other jurisdictions.
  2. A hands-off approach to disputes (not great for players).
  3. Payments/Banking are difficult (not great for you).
  4. General running of the business can be challenging.

Curacao gambling license as a service:

A managed Curacao gambling license is a white label operated under our existing Curacao gambling company. We own RGS casino software which we use to build white label casino brands using our and third party games.

If you have built your own casino games, we are able to go through a process to have your games approved by the regulator for use under our licence. Once approved, we can build a licensed casino brand using your games!

Our managed license is popular with game developers who wish to focus on marketing their games and not be burdened by the underlying company.

Take a look at www.gamblingtec.com for further information.

Get in touch:

I have years of experience with gambling hosting, casino games, Curacao gambling licensing and online casinos