In an effort to operate and run a gambling business, there are 3 things that have to be taken into consideration to obtain a license and any online casinos secured one like judi online. These will significantly vary on the approach to regulation as well as jurisdiction.
In reality, there are couple of approaches when it comes to regulation and these are:
- Principle based approach and;
- Rules based approach
This results to having different types of regimes. Thus, the cost structures in order to acquire and to keep a license will vary as well. As for the former, it has a tendency to have more expensive entry while rules based approach is often associated with higher operation cost.
3 Elements of Applying a Casino License
As mentioned earlier, there are 3 things to be considered when obtaining a license and the following are the following:
Number 1. Process of Application
Majority of the license applications are associated with expensive advisor/legal bill in which the size will vary on the applicant and how sophisticated the business is. There’s going to be legal disclosure that is required on directors as well as business owners. At the same time, you’ll be required to present a business plan and to demonstrate how you’ll be addressing key regulatory requirements including but not limited to:
- Safe custody of customer funds
- Anti-money laundering and;
- Social responsibility
On top of this would be the cost of technology and the hosting provider which might be an expensive and time-consuming process.
Number 2. License Itself
The license fees have the tendency to reflect the government’s fiscal attitude than the regulatory regime itself. To give you an example, license in Alderney have a fixed rate which will vary on the size of your business and they are not charging gambling tax onto the revenue. But for this license, you are most likely looking at 75,000 dollars worth of fee on the licensing annually.
Others similar to Gibraltar will have minimum fee of 105k dollars on 1 percent of the casino’s revenue all the way to 515,000 dollars annually.
Number 3. Compliance
This particular cost element is typically disregarded which could be painful on the end of the casino owners. You have to find out how much it’ll cost you in retaining your license per year. The cost of compliance report consists of monthly data to regulator, inspection cost, ongoing certification of new game titles and having a random number generator reseeded and to be recertify regularly.Continue Reading