Popularity for online gambling is soaring. It has never been a better time to launch your own online casino or iGaming platform thanks to the ongoing boom created by people staying at home during lockdown and turning to online gambling for entertainment. If you get your planning, development and marketing right, you could be looking at some serious profits for your business.

However, it is easy to talk about creating a new online gambling platform without doing much about it. In terms of owning your own platform that makes money, going from idea to final product is easier said than done. There are lots of practical steps that you need to take before it becomes a reality.

One of the major tasks to complete is to get yourself an online gambling license, which is an essential for any iGaming operator that wants to be taken seriously within the industry.

Most gambling licenses for online platforms are required by licensing governments to ensure that the business in question meets certain minimum standards of reliability, security, and fairness.

Not all governments offer gambling licenses to businesses for various reasons, the main one being that gambling is illegal in many countries around the world. Amongst the countries and jurisdictions that do issue licenses, both prices and requirements vary. There are specific lists of rules that online gambling establishments must follow, and these rules will be altered slightly depending on where an iGaming business is applying for their license.

The most common requirements are as follows:

• A 'fit and proper person' test for owners and senior management to ensure that the business is in safe hands
  
  
• Regular and thorough testing and validation checks of random number generator (RNG) software
  
  
• A detailed list of permitted (and prohibited) customers, and the enforcement of this list
  
  
• Publishing and maintaining current data on each offered game's return to player (RTP), for transparency in games
  
  
• Providing telephone, email, and/or online chat customer support to customers
  
  
• Displaying elapsed playing time in all gaming software so that each player is aware of their time spent gambling
  
  
• Establishing limits on deposits
  
  
• Establishing and observing waiting periods on limit increases
  
  
• Responding quickly and fairly to complaints made by customers
  
  

If you are setting up a new online gambling platform and you're about to apply for a license, you should make sure that you meet the above criteria, or you risk seeing your application get rejected.

While most jurisdictions who offer online gambling licenses only offer one license to cover all betting activity, some have slight differences or require additional permits, or additional taxes to be paid. The nature of your platform will dictate what these differences will be. It is very wise to do lots of prior research and consult with a person or company who knows the industry inside out before applying, as they might be able to suggest which license to apply for, help you out with your application, and tell you how you can improve your application to make it more likely that it will be a success.

Below you will find short reviews of some of the world's major online gambling licenses in some key jurisdictions. We will take you through the financial and legal requirements of each one so that you know if you are prepared to start your application, as well as some of the pros and cons of each license so that you will know which is right for you.

Malta has been offering online gambling licenses since the year 2000. Licenses on the island are issued by the Malta Gaming Authority (MGA), and a Maltese license is considered one of the best and most reputable in the world. Previously, those wishing to offer casino, betting and eSports would have to apply for several different licenses, however the government in Malta recently decided to streamline the laws surrounding iGaming regulation to reduce the number of licenses to just two.

Those in possession of a Malta gambling license do not need to apply for an additional eSports gambling license. They are however required to update their company business activities and notify the MGA of what services and products they intend to provide to their customers. All software, policies, and activities must be in line with local and EU legislation. For companies wishing to set up an eSports betting company in Malta, they must apply for a B2C license. This will permit them to offer eSports betting, regular sports betting and other types of online gambling.

Getting an online gambling license in Malta is a very good prospect if you are a start-up, given that for a 12 month period after receiving the license they will not have to pay compliance contributions. They are required simply to pay monthly declarations and fixed license fees. For iGaming businesses trying to get off the ground, this could be a major advantage for small operators looking to save money on their license. You can find out whether your start-up qualifies for this exemption here.

Pros of Malta license

• Stable regulatory framework, with a dedicated government body which brings efficiency to the way that the industry is run in Malta
  
  
• A trustworthy and reputable license since it is sanctioned by the EU
  
  
• High levels of protection for both players and operators
  
  
• Great for businesses who are just starting out
  
  

Cons of Malta license

• Taxation and license fees can be high
  
  
• A significant proportion of your operations must be based in Malta
  
  
• There are lots of tough requirements that you'll need to meet to qualify for a Malta license
  
  

Approx. annual cost of Malta license: €25,000

Curacao is a small island in the Caribbean sea, and its government has been offering an online gambling license since the mid-90s. It was in fact one of the first jurisdictions in the world to regulate online gambling, and so it has become an important location within the iGaming industry. Many online gambling operators are drawn to the Curacao license because of its low cost and simple application process. When compared to other jurisdictions, it is light on paperwork and bureaucracy. This makes it the perfect location for startups or those with a lower budget.

Those wishing to operate an eSports betting platform from Curacao only need to apply for one license. However, this is not a specific eSports gambling license and it permits license holders to provide any kind of online gambling services, including but not limited to online casino, sports betting, bingo, lotto or any game of chance.

Pros of Curacao license

• Straightforward gambling and tax laws
  
  
• Low cost for license application
  
  
• Unified license for all gambling activities
  
  

Cons of Curacao license

• Seen by some operators as having lower licensing standards than other jurisdictions
  
  
• A number of key international markets are closed to Curacao license holders, including France, the Netherlands, the UK and the USA
  
  

Approx. annual cost of Curacao license: $5,000, and a one time application fee of $1,100

Kahnawake is a Mohawk Territory and First Nations reserve in Canada which has been offering an online gambling license for many years. There are several different kinds of licenses on offer and which one you need will depend on your individual circumstances and the games that you plan on offering.

The process of applying for an online gambling license for eSports in Kahnawake is very straightforward and can be completed in just a few weeks. A Kahnawake license is issued initially for a 6 month period, and then will need to be renewed every 2 years. Kahnawake is a relatively low-cost jurisdiction in terms of application fees and maintenance when you begin operating, although not the cheapest option.

Pros of Kahnawake license

• Kahnawake has a good reputation within the iGaming world and high ethical standards
  
  
• The regulatory authorities are responsive to innovative and proactive iGaming and eSports operators
  
  
• Simple application process
  
  

Cons of Kahnawake license

• Not as cheap as the Curacao license
  
  
• Need to consider corporate set up, bank accounts, and Key Person License applications for each individual
  
  

Approx. cost of Kahnawake license (application + first year's fee): $25,000 - $35,000

As an overseas territory of the United Kingdom and located just off the southern coast of Spain, Gibraltar has become one of the world's leading hotspots for online gambling, and the online gambling industry is now one of the largest in the country. The Gibraltar Gambling Commission (GGC) is a department of the government based in Gibraltar which takes central responsibility for managing the remote gambling licensing and regulating of any online casinos, or other online gambling businesses, that operate under Gibraltan jurisdiction.

The GGC is tasked with making sure that any and all gambling businesses operating under their jurisdiction stay within the set regulations and provide a safe, secure, and fair gambling experience to their players. If granted a license by the GGC, any online casino is free to offer their online gambling services from Gibraltar to anyone in the world where online gambling is legal.

Pros of Gibraltar license

• Very reputable license - many of the world's most popular online casinos are licensed and regulated by the GGC
  
  
• High level of protection for players and operators
  

Cons of Gibraltar license

• Difficult to obtain a license - there is a long application process and you will need to have a proven track record
  
  
• Can be very expensive to get a Gibraltar license
  
  

Approx. annual cost of Gibraltar license: £100,000

The UK has one of the safest gambling and betting jurisdictions in the world. Gambling is completely legal and governed by strict laws which are regularly checked and updated. Nevertheless, it might surprise you to hear that the UK online gambling industry was unregulated until 2005!

The UK has now put in place new licensing laws and runs a fully legal and secure online gambling and betting platform alongside its land operations. Gambling in the United Kingdom is regulated by the Gambling Commission. Everyone who wishes to provide a gambling service must make sure that they abide by the laws in place and have a valid gambling license. In order to apply for the license, companies are required to demonstrate that they have the necessary protections in place to prevent crime and protect customers. An operating license application in the UK will take around 16 weeks to process, assuming that all the correct information and documents have been supplied.

Pros of UK license

• Very good international reputation in the online gambling industry
  
  
• Transparent throughout the application process and during operations
  
  
• Strong protection for players and operators
  

Cons of UK license

• Expensive application and operations
  
  
• The application process can take much longer than in other jurisdictions
  

Approx. annual cost of UK license: Based on gross gaming yield - between £2,640 and £57,304

The Isle of Man is a self-governing part of the UK which sits between Ireland and Great Britain and has a population of approximately 83,000 people. The Isle of Man is considered a gaming business-friendly environment.

The Isle of Man Gambling Supervision Commission (GSC) was founded in 1962 and is fully independent and committed to player protection, and offers online gambling licenses to iGaming businesses. The GSC is available to provide guidance on the application process, and the Department of Economic Development is authorised to manage and support online gambling businesses in the Isle of Man.

Pros of Isle of Man license

• Fully committed to player protection, particularly amongst younger customers
  
  
• Low tax rates
  
  

Cons of Isle of Man license

• Few operations based on the island, so the regulatory body is fairly small
  
  
• Less reputable than licenses from some other jurisdictions
  
  

Approx. annual cost of Isle of Man license: £35,000 for a full license, £5,000 for a sub-license, with a £5,000 application fee

Choosing the right license to suit your business is important to ensure that you can grow, attract players, and carry out your operations and plans with freedom and flexibility.

The different online gambling licenses outlined above vary in terms of cost, coverage and simplicity of application process. Before you start an application, you should do thorough assessments of each depending on your budget, proposed time to market and license requirements that you think you will need.

It is important to note that in most cases just one license will be sufficient for you to offer your online gambling services to customers from many different countries around the world. This will save you money as you don't need to acquire multiple licenses for different markets - one should be sufficient to cater for an international customer base. There are only a few countries globally whose varying laws around online gambling might mean that you require specific licenses to open up for business in that country.

Hopefully this article has given you an insight into the types of license that are available, as well as helping you to start thinking which online gambling license is right for you and your business.