Gambling license Czech Republic

Gambling license Czech Republic

The Czech republic is not a popular destination to apply for a Gambling license and there are certainly better destination to consider.

The Czech Republic, in Central Europe, is known for its ornate castles, native beers and long history – from the Celtic and Germanic tribes of its founding to the Protestant Reformation and Communism. Prague, the capital, is home to a 9th-century castle, preserved medieval Old Town and statue-lined Charles Bridge. Český Krumlov is a living gallery of Renaissance-era buildings housing restaurants and shops.

If you want to incorporate and apply for a Gambling license in the Czech Republic you could not choose a more beautiful location to do so. But working in the Czech Republic is not cheap and you will need to be aware of the following taxes and costs:

  • Corporate tax: 19%
  • Gambling tax: 40%

Before setting your sites on starting your new casino in Czech, you would be wise to look into the cost of employment as well as office space etc.

Who manages E-Gambling in Czech Republic?

  • The Ministry of Finance

Overview

The high taxation rates for online gambling makes it difficult for national operators though the tax rate is lower for foreign operators. Though you have to have an office in the Czech Republic to qualify for a license. Previous legislation does allow for the licensing of online sportsbooks.

There are five existing bookmakers in the Czech Republic they are listed below for reference:

Sazka, Synottip, Chance, ifortuna and Tipsport

Anti-Money Laundering Policy:

All operators must comply with AML legislation.

Contact Details:

Address:
Czech Republic Ministry of Finance
Gaming Department
Letenská 15
Prague, Praha, hlavní mĕsto
Czech Republic 118 10
Website: www.mfcr.cz
Email: gambling@mfcr.cz
Fax: +420 257 042 788
General Information: +420 257 041 111

Online casinos licensed in Czech Republic:

  • Fortuna vsad’te se
  • Sazka Tip

For more information:

Get in touch:

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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 alternative casino licensing information.

Gambling license USA

Gambling license USA

We summarize the most important online gambling laws pertaining to gambling operators and users of gaming services in the countries where online gambling is legal to some degree or other.

Gambling license USA

The USA is a very lucrative market for online gambling companies, although there are many legal risks involved. Since 24% of all online gamblers in the world reside in North America, and the majority of gambling companies doing their hosting in Curacao (where we have our operations – to find out more Click here), we go into detail about the legal situation in this country.

The individual States in the USA have the power to make laws pertaining to their state only, but on the other hand there are Federal Laws that is applicable to the whole country, while protecting State rights. This makes the online gambling legal situation in the country very complex.

We start by giving an overview of the main Federal laws that address the legality of online betting, wagering and gambling in the USA, and then we will have a look at the situation in the individual States.

USA Federal gambling laws:

1. The Interstate Wire Act of 1961 (commonly referred to as the Federal Wire Act).
This law addresses only the issue of online sports betting and wagering and does not address the legality of online gambling as such.

Here is paragraph (a) from that law:
“Whoever being engaged in the business of betting or wagering knowingly uses a wire communication facility for the transmission in interstate or foreign commerce of bets or wagers or information assisting in the placing of bets or wagers on any sporting event or contest, or for the transmission of a wire communication which entitles the recipient to receive money or credit as a result of bets or wagers, or for information assisting in the placing of bets or wagers, shall be fined under this title or imprisoned not more than two years, or both.”

Source: http://www.law.cornell.edu/uscode/text/18/1084

2. Illegal Gambling Business Act of 1970

The Illegal Gambling Business Act was enacted as part of the Organized Crime Control Act of 1970. This Act was designed to be a companion to other laws, such as the Federal Wire Act, in targeting a source of income for organized crime. Unlike the Federal Wire Act, the Illegal Gambling Business Act is designed to assist states in enforcing their laws with regard to interstate gambling activities and is dependent on a predicate state offense.

Here are some extracts from that law:

18 U.S.C. 1955 the Statute
Prohibition of illegal gambling businesses
(a) Whoever conducts, finances, manages, supervises, directs, or owns all or part of an illegal gambling business shall be fined under this title or imprisoned not more than five years, or both.

(b) As used in this section-
(1) “illegal gambling business” means a gambling business which-
(i) is a violation of the law of a State or political subdivision in which it is conducted;
(ii) involves five or more persons who conduct, finance, manage, supervise, direct, or own all or part of such business; and
(iii) has been or remains in substantially continuous operation for a period in excess of thirty days or has a gross revenue of $2,000 in any single day.

And:

(e) This section shall not apply to any bingo game, lottery, or similar game of chance conducted by an organization exempt from tax under paragraph (3) of subsection (c) of section 501 of the Internal Revenue Code of 1986, as amended, any private shareholder, member, or employee of such organization except as compensation for actual expenses incurred by him in the conduct of such activity.

3. Interstate Wagering Amendment of 1994

This Act relates mostly to lotteries:

“Whoever brings into the United States for the purpose of disposing of the same, or knowingly deposits with any express company or other common carrier for carriage, or carries in interstate or foreign commerce any paper, certificate, or instrument purporting to be or to represent a ticket, chance, share, or interest in or dependent upon the event of a lottery, gift enterprise, or similar scheme, offering prizes dependent in whole or in part upon lot or chance, or any advertisement of, or list of prizes drawn or awarded by means of, any such lottery, gift enterprise, or similar scheme; or, being engaged in the business of procuring for a person in 1 State such a ticket, chance, share, or interest in a lottery, gift, enterprise or similar scheme conducted by another State (unless that business is permitted under an agreement between the States in question or appropriate authorities of those States), knowingly transmits in interstate or foreign commerce information to be used for the purpose of procuring such a ticket, chance, share, or interest; or knowingly takes or receives any such paper, certificate, instrument, advertisement, or list so brought, deposited, or transported, shall be fined under this title or imprisoned not more than two years, or both.”

4. Unlawful Internet Gambling and Enforcement Act of 2006 (UIGEA)

This is the major gambling law that has to be considered by any online gambling operator. It targets large online gambling operations, and does not criminalize the consumers who participate in online gambling.

The Act prohibits gambling businesses from knowingly accepting payments in connection with the participation of another person in a bet or wager that involves the use of the Internet and that is unlawful under any federal or state law (termed “restricted transactions” in the Act). The Act also requires Treasury and the Federal Reserve Board (in consultation with the U.S. Attorney General) to promulgate regulations requiring certain participants in payment systems that could be used for unlawful Internet gambling to have policies and procedures reasonably designed to identify and block or otherwise prevent or prohibit the processing of restricted transactions.

The Treasury and the Federal Reserve Board have issued a joint rule that designates five payment systems which are covered by the Act. These systems are:
(i) automated clearing house (ACH) systems,
(ii) card systems,
(iii) check collection systems,
(iv) money transmitting businesses, and
(v) wire transfer systems.

The Act starts with the following paragraphs:

“(a) Findings.- Congress finds the following:
(1) Internet gambling is primarily funded through personal use of payment system instruments, credit cards, and wire transfers.
(2) The National Gambling Impact Study Commission in 1999 recommended the passage of legislation to prohibit wire transfers to Internet gambling sites or the banks which represent such sites.
(3) Internet gambling is a growing cause of debt collection problems for insured depository institutions and the consumer credit industry.
(4) New mechanisms for enforcing gambling laws on the Internet are necessary because traditional law enforcement mechanisms are often inadequate for enforcing gambling prohibitions or regulations on the Internet, especially where such gambling crosses State or national borders.”

Notwithstanding section 5362 (2), a financial transaction provider, or any interactive computer service or telecommunications service, may be liable under this subchapter if such person has actual knowledge and control of bets and wagers, and-
(1) operates, manages, supervises, or directs an Internet website at which unlawful bets or wagers may be placed, received, or otherwise made, or at which unlawful bets or wagers are offered to be placed, received, or otherwise made; or
(2) owns or controls, or is owned or controlled by, any person who operates, manages, supervises, or directs an Internet website at which unlawful bets or wagers may be placed, received, or otherwise made, or at which unlawful bets or wagers are offered to be placed, received, or otherwise made.”

More information can be found at: http://en.wikipedia.org/wiki/Unlawful_Internet_Gambling_Enforcement_Act_of_2006

Because of these Federal gambling laws, online gambling companies are hosting their operations in off-shore countries that supply legal gambling licenses and also using off-shore money transfer services. But even doing that has its risks as can be seen from the recent arrests of the founders of companies like PokerStars, Full Tilt Poker, and Absolute Poker.

The United States judiciary system seems to target only the largest online gambling operators (many of them quoted on the Stock Exchanges), which leaves the market open for the smaller companies. Indeed, we see a spike in these smaller companies’ business turnover as gambling enthusiasts moved over to them after their main resources were cut off.

According to Department of Justice the companies allegedly tried to circumvent UIGEA rules with the help of others who acted as “payment processors” by helping to disguise gambling revenue as payments for non-existent goods such as jewelry or golf balls. A bank in Utah was charged as an accomplice.

State Laws:
There are no States at the moment that issue online gambling licenses.

The question if online gambling is legal in some States is a complex one, since many States do not have explicit laws on this question. Nevertheless, the following States have instituted specific laws that prohibit internet gambling that make it illegal for their citizens to participate in online gambling activities:

Illinois
Indiana
Louisiana
Montana
Nevada
Oregon
South Dakota
Washington
Wisconsin

That does not mean that States not on the list allow online gambling – there may just not be a specific current law dealing with that issue.

New Jersey seems to be the first State that is moving towards legalizing online gambling.

We are indebted to http://www.gambling-law-us.com for the following information on the different gambling laws of the individual States:

(Follow the links attached to each State to get the details of the specific legal situation)

For more information:
As gambling is regulated by state and territory, you can review the links under the “Gambling and Licencing” heading.

Get in touch:

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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 alternative casino licensing information.

How to license a Cryptocurrency casino

If you are involved with cryptocurrency casinos, chances are, you have wondered How to license a Cryptocurrency casino?

About cryptocurrency

The creation of cryptocurrency and digital currency has revolutionised online gambling. The first digital currency was introduced in 2008 and today there are over 1500 different crypto currencies and growing. Bitcoin is the most popular and the first. There are a number of online casinos that accept digital currency, therefore knowing what qualities to expect from good Crypto Casino’s is important.

Here are a few qualities to consider:

  1. Fast deposits and withdrawal: All crypto currencies boast a fast deposit and withdrawal speed, these transactions should be done in a few minutes.
  2. Transaction fees: These are much smaller when depositing and withdrawing cryptocurrency.
  3. Anonymity: Usually only your email address is required. This anonymity also allows users, located in countries where online gambling is forbidden, to access and play at online casinos.
  4. Verifiable game results: Via provably fair protocols – numerous crypto casinos offer a provably fair feature, which users can utilize in order to verify whether their roll is authentic or has been tampered with. This provably fair system guarantees fairness of games. The transparency of blockchain can also be used to further prove fairness.
  5. Higher pay outs: Any high quality crypto casino will offer high pay outs across all games.
  6. Lucrative Offers: Be on the lookout for welcome bonuses and in-house game promotions. Loyal Bitcoin gamers may also qualify for exclusive VIP reward systems where they are handsomely rewarded.

Cryptocurrency casino checklist

  1. Proper licensing from a recognized gaming jurisdiction.
  2. 24 hour customer support in case of any queries.

Are cryptocurrency casinos legal?

The big question on many minds – is cryptocurrency gambling legal? The short answer is currently, yes. As it isn’t an official currency, ‘playing’ with it doesn’t differ much from playing with any other virtual currency. In addition, if you have acquired your cryptocurrency anonymously then it becomes almost impossible to ban, restrict, or regulate. We wrote an article on Bitcoin casino licensing which should give you some more insight.

How to license a cryptocurrency casino?

A cryptocurrency casino is licensed no differently than a normal casino. There are certain restrictions that may be put in place, for instance, Curacao licensed casinos can not act as a type of exchange or financial services entity and for this reason, if they accept Bitcoin, they must not convert this into any other currency. This can easily be circumvented by using a third party PSP who does the exchange for you.

Why license your cryptocurrency venture?

We speak with prospective casino owners on a day to day basis and it is a common question as to the point of licensing a pure crypto casino. One of the many reasons is accountability. A licensed casino is required to adhere to certain rules and regulations as enforced by the jurisdiction in which it works. This may be to ensure that games are fair or to have enough funds to payout players. Another reason is that by licensing under a jurisdiction, you are protected from third party law suits who may claim (right or wrong) that you are operating your cryptocurrency illegally.

How to get started?

When considering licensing your venture you may be interested in obtaining either a Malta gambling license or a Curacao gambling license. You also have an option to setup a white label type solution as well which is affordable.

GamblingTec.com can power your cryptocurrency casino

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

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Cost of a Malta gaming license for your casino

Gambling license report

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

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

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) €1,000.00 – €2,000.00
Company Secretary €500 – €750
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?

The time frame for the application of an iGaming licence to be processed by the MGA ranges between 4 to 6 months depending 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.

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How to license my gambling app

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?

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Bitcoin Casino License | How to license your Bitcoin casino

We help our clients with a Bitcoin casino license. If you own a Bitcoin casino or want to start one, then look no further, we can help you with your bitcoin casino license requirements as well as bitcoin hosting and related technical needs. Our services are not limited to Bitcoin but also cover cryptocurrency, blockchain and smart contract based casino licensing as well.

About bitcoin casino license

There is no difference between a traditional gambling license, for fiat currency casinos, and a license for a Bitcoin casino. What differs is the operation of the casino. With a traditional casino, you need your license to get a bank account, credit card processing, e-wallets etc. Without the license, financial institutions are not going to work with you.

We work with two jurisdictions for licensing, Malta and Curacao. Curacao is more an entry level gambling license which companies use for secondary markets and Malta is more a “blue chip” type license used to target Europe. Bring your Gold bars if you want a Maltese gambling license for your Bitcoin casino.

Do I need a Bitcoin casino license?

If you want to offer your clients security that you are a legitimate company, then yes you do need licensing.

If however you genuinely can not afford to get a license then perhaps look at partnering with GamblingTec.com which is a company working with small start up casino operations.

If GamblingTec.com is out of your budget then at the very least host your casino in a gambling friendly casino as you will be asking for trouble otherwise.

We have heard the arguments that Traditional casinos are controlled via banking relationships which is governed by the gambling license. Casinos that are not licensed can not accept payments as the banks will either freeze funds or refuse to move those funds. Clearly with Bitcoin based casinos, this is not an issue since Bitcoin is decentralised so you can run a casino without a license and there is not much that any authority can do to stop you. Will customers use your casino over someone elses? Some will and some wont…

Curacao legislation fully supports Bitcoin casinos with a few provisions one of which is that you may not act as a cryptocurrency exchange. So if a client deposits Bitcoin, they must play their games in Bitcoin.

What does Bitcoin casino license cost?

We have answered this question in detail for the two jurisdictions we work with, please read this post on Curacao gambling licensing costs, and Malta gambling licensing costs.

To provide a very brief answer. For Curacao you will spend around €30k in your first year. And for Malta, a LOT more.

Get in touch to discuss your Bitcoin casino licensing needs

We have extensive experience with licensing and company structures. It costs you nothing to start a conversation over Skpe of Email. In a single conversation we can advise you on all the options (we have heard them all and can support most of them).

bitcoin casino license

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Cheap gambling license

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!

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Curacao Gambling License

Gambling license report

Curacao Gambling License

About us

We are specialists in Curacao Gambling Licensing and offerings and have been working in the Curacao space since 2006. Our activities include webhosting services to online casinos, assisting clients with their curacao gambling license, corporate structures as well as affordable hybrid licensing solutions. Additionally we write gambling related software building games and other solutions for our clients.

An affordable license

If you want to start an online casino and are looking for an affordable gambling license, then the Curacao license is likely for you. Curacao offers a single license that takes care of lottery, casino, sports betting and other types of betting/casino games. Legislation is easy to understand and legal structures are relatively simple.

We believe a Curacao Gambling License is the a good license for start up casinos since it is realtively simple and straightforward to obtain with little bureaucracy involved or complicated legislation to get your head around. Not only that, it is affordable and widely accepted.

To obtain your license you will require a Curacao E-Zone Company which comes with tax benefits and other incentives. We have written a detailed article on the costs of a Curaca gambling license.

Once you have your Curacao Gambling License, you are free to obtain additional licensing in order to widen your reach into regulated markets and we can help you with this.

Who can use a curacao gambling license?

A curacao gambling license can be used for any type of betting or casino environment including but not limited to:

  • Bitcoin casinos
  • Ethereum casinos
  • NEO casinos
  • Cryptocurrency casinos

The license is used by a variety of business types from the usual casino games, sports betting, lotteries as well as by game development companies who want to RND certain games under an affordable license.

Get in touch to get your Curacao gambling license

We have a comprehensive flyer outlining costs and processes you need to follow to get your license. We can answer any questions you may have relating to a license, hosting, jurisdictions, best companies to work with, companies to avoid, how to obtain processing and which banks to work with.

Contact us via our support desk for more information, we also offer a free gambling license consulation service should you wish to arrange a meeting.

On a budget?

As mentioned in the document above, some companies require a cheap gambling licensing solution in order to trial new casino games and concepts. We can offer a hybrid licensing service through our GamblingTec.com platform which may meet your needs. Get in touch for more information.

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

How to get a gambling license in South Africa

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 and casinos or similar.

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 Governmnet 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

Cost of a gambling license in Curacao

NOTE: Last update: June 13 2020

Gambling license report

Overview

So you have been wondering how to get a gaming license? You may have looked at more traditional jurisdictions such as the UK or Malta. But the gaming license cost is a significant factor in your decision-making process and they are likely too expensive or bureaucratic to get. for this reason, a remote gaming license from Curacao is looking like an affordable option.

Your local gambling commission license requirements may be too onerous for your needs or simply too expensive. You want an online gambling license to service your immediate needs and at the right price.

A Curacao gaming license is probably your most affordable option to get your casino, poker, bingo, sportsbook, lottery, crash games, sweepstakes, or raffle licensed and online! It is more affordable than a Malta gaming license and less bureaucratic. In addition to this, Curacao corporate structures offer low tax incentives and offer great legal protection.

Further to the above, Bitcoin and cryptocurrency casinos are choosing to license in Curacao as the jurisdiction offers flexible and cost-effective sublicensing opportunities such as the great licensing offer by GamblingTec.com.

Costa Rica License as an alternative?

Some of our readers point out that a Costa Rica gambling license is considered a “cheap gambling license”. Be warned, it is not an actual gaming license but rather a data processing license. More often than not, financial institutions will not work with any entity using this for their gaming licensing purposes. Even if you are a cryptocurrency casino, a Curacao license is likely a better option, and partnering with GamblingTec.com is going to be your best way forward.

What we cover

Curacao is possibly the most affordable offshore gambling jurisdiction to be licensed in and comes with significant tax incentives. The purpose of this document is to answer the following questions:

  1. Who issues Curacao sublicenses?
  2. How do you obtain the Curacao gambling/casino license?
  3. How much will the gambling license cost?
  4. How long does it take to get the Curacao gambling license?
  5. What casino businesses can I operate with the license?
  6. Where will the gambling license be valid?
  7. What taxes will I need to pay?
  8. How to apply for a Curacao gambling license?
  9. Can a foreign company apply for a Curacao gambling license?
  10. What are the pros and cons of a Curacao gambling license?

Who issues Curacao sublicenses?

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

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

How much will a Curacao gambling license cost?

This document contains “cost estimates only” and should not be seen as some form of “Quote”. While we have tried to keep the information as up to date as possible, prices change especially when considering the legal burdens and due diligence processes required in order to obtain a Curacao license.

Depending on where you go, you could expect to pay anything from $15 – $35k per annum. This cost depends on what you plan to do and where you obtain your license from. For instance, a White Label service provider may offer you a license and company for $15k per annum. because they will earn a lot more on the White Label services they offer to you. On the other hand, you may go directly to a trust management company that may charge you $25K per annum.

Where is a Curacao gambling license valid?

While Curacao licensed gambling operators are expressly forbidden to be used in certain countries, this does not mean your Curacao casino will be accepted in all other jurisdictions. Each jurisdiction has its own set of rules which will limit your ability to operate under the license. For instance, you may be prevented from using local payment solutions, or advertising your business without holding a valid local license. Your current PSPs may soft block some regions and interbank networks may refuse to process wire transfers from others. Payments, in general, should be thought of as an ever-moving target.

The Curacao license can be legally used in any jurisdiction other than the following where it is expressly forbidden under Curacao law: Aruba, Bonaire, Curacao, France, The Netherlands, Saba, Statia, St. Maarten, Singapore, and the USA.

If you do not have a local gambling license in the following jurisdictions: Bulgaria, Cyprus, Poland, Hungary, Slovakia, UK, Norway, Russian Federation, Mexico, Australia, UK and Canada, PSP’s “may” block payments from those regions. We use the word “may” as this is not always the case which is generally determined by the jurisdiction of the PSP being used.

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

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

For a more detailed analysis of where the license can be used, we have compiled a post, which is a work in progress, on where the Curacao gambling license can be used.

How to get a Curacao gambling license?

In order to obtain the Curacao gambling license, you will need to go through an eGaming application process. The process is quick, so long as you have all the required documents in place.

  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)

NOTE: Due to PE (Permanent Establishment rules) some regulators require that you own hardware on the island with the minimum requirement being that you backup your client database to that server.

Incorporation and management costs

You will be working with a local management company who will take care of filings and general administration requirements. They will also be responsible for setting up your company and applying for your gambling license.

  1. EUR5500 – EUR6500 one-time Incorporation fee
  2. EUR3250 – EUR5250 annual management fee
  3. EUR200 monthly administration costs (varies)

Expect to spend anything between EUR25,000 – EUR35,000 in your first year.

Licensing costs

Licensing fees for the online gaming (sub)license are:

  1. EUR4500 to ERU 12,500 (annual) license fee (will vary between providers)
  2. EUR1500 – (one-time) application fee

Hardware costs

You are required to own hardware on the island in order to satisfy the permanent establishment requirement (PE). This is not as difficult as you may at first imagine and we can help you with finding a second-hand machine pre-existing on the island or having one flown in.

  1. Server cost: EUR1200 – EUR 5000
  2. Hosting costs: EUR5400/annum

You are also free to host with the local data center, however, this is not a managed environment and does not come with cloud and shared hosting options as part of the deal.

How long does it take to get gambling licensing?

Once your company has been established, it will take a few weeks and on the condition, you have all your paperwork in place.

What casino businesses can I operate under a Curacao 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, arguably Poker, Back Gammon, Certain board games etc.

Does a Games of skill need a gambling license?

It is worth mentioning games of skill as this is often a contentious issue. Often operators attempt to classify their games as a game of skill in order to avoid getting a gambling license. While in some cases this may be true, the ultimate acid test is whether the banks will offer merchant processing to your game or not. A good blueprint is to take a look at the Malta controlled skill game regulations to better understand your game designation.

What taxes will I need to pay with my Curacao Gambling License?

Curacao has a 0% tax on foreign transactions. You will pay 6% VAT on invoices and the normal tax rate (40%) if you do business with other Curacao companies.

How do I apply for a Curacao gambling license?

 

Your first step is to download our Curacao, license application document. From there, get in touch for a call.

Can a foreign company apply for a Curacao gambling license?

It is possible and completely feasible for a foreign company to obtain the benefit of a Curacao gambling license.

A foreign company cannot apply for a sublicense directly from a master license holder, instead, they must apply through an existing licensed Curacao company as a type of white label/turnkey casino solution. This is a convenient way to get your license sorted out since it is a lot quicker.  If you run a cryptocurrency or blockchain-based casinos, this is the recommended way to work. We call it a managed service, get the managed service document!

When sublicensing, the company managing your license will be listed as the responsible party. When users click on your license seal, it will reflect the managing entity and for this reason,  it is in their best interest to make sure your casino follows the rules and regulations. There are some tradeoffs, hosting of your casino needs to be in Curacao which can be a node or a backup of your database.

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

The pros of a Curacao gambling license relate to lower costs to obtain, offers a simple application process, and is an all-inclusive license (you can offer sports betting and casino games on the same license).

The cons of the license are lower standards when compared to a jurisdiction such as Malta, a hands-off approach to disputes, difficult to market in some jurisdictions, and in some cases, reputation.

Do note that Curacao is actively working at improving its reputation and re-writing legislation in order to improve the perception of its license.

Alternative casino gambling license options:

We work with GamblingTec.com that offers two licensing opportunities. The first is a Managed Service which allows your existing company to contract with its Curacao company. The second is for game developers to integrate their games into its existing platform and then to promote those games via an affiliate website.

Managed Casino + License

You work with a management consultant who sets you up with a sublicense under an existing Curacao company. This is a highly recommended way to get your casino up and running and such a partnership comes with many benefits such as existing relationships in terms of processing and banking.

Platform + License

For game developers and casino entrepreneurs, a further option is to set up a platform based casino which operated under the license of GamblingTec.com. The platform is an accounting, bet/collect system that your game can easily plug into.

We recommend taking a look at www.gamblingtec.com.

A GamblingTec casino can be converted into a stand-alone licensed entity at a later date which is convenient and an easy way to test out your casino related concept.

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.