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Online casinos who wish to offer cryptocurrency as a payment method must find a regulator that understands and supports crypto technology.
Introduction | Online Casino Regulators: How it Works
Being a licensed and regulated casino business is now more important than ever. Having that simple number that guarantees that you operate according to law and follow all necessary user-protection measurements can be what makes or breaks the deal for your company. Also, players prefer online mobile casino sites for gambling in India and with license as they provide better customer service and help them gain the confidence they are plain in a respectable online casino venue.
Online casino gambling can be perceived as regulated and unregulated, all depending on the point of view. While the entire European Union put a lot of effort into creating safe gambling conditions for its citizens by providing online gambling licenses to serious businesses, other countries, like India, simply ignore the fact that online casinos even exist.
Licensing authorities, also known as regulatory agencies, provide the licenses within the legal and regulatory framework set by the government. Their jurisdiction is limited to a specific country, so the best online casinos have more than a single license. One of the most popular combinations is the UK Gambling Commission license and Malta Gambling Authority license, as it covers important territories of the UK and the entire EU. However, obtaining a license is more than paperwork. Most authorities ask casinos to base at least a part, if not the whole, of its operations in the country that provides the license. Depending on the country, some special agencies and lawyers assist casinos in obtaining this important stamp of approval.
What is a Gambling License?
A gambling license is a certificate that guarantees the company they can legally offer games of luck, like poker, slots, and roulette. It can be issued for both brick-and-mortar casinos and online casinos. Casino establishments that combine offline and online gambling offers, usually need only one license.
Every gambling license contains a code, usually of numbers and letters, that is unique for the company. It is important to understand that the license is issued for the company behind the casino, and not the casino brand itself. This way, one company can create multiple online casino brands with a single license.
How to Apply for an Online Gambling License?
Every country has a different procedure, and some will require more footwork than the others. Companies can also hire special agencies that can help them obtain the license.
Licensing authorities have a special set of criteria they consider important, and standards they perceive as imperative for those applying for the license.
Most regulators will require disclosing financial and organizational information about the company. This can also include documentation about partners, owners, their tax history, etc. They often ask for information on certain highly-positioned individuals. As casinos often cooperate with other companies (for example, those specialized in customer support), they frequently ask for some information on them as well.
Regulatory bodies may also ask to check casino’s payment policies, anti-money laundering policies, verification processes, social responsibility and support in the fight against gambling addiction, the development plan of their business, and others.
The main purpose of all these requirements is not only ensuring that the company entering the market is professional and means serious and safe business, but to discourage certain companies as well. Financial stability and protection of their citizens are usually considered more important than becoming a licensing haven. Also, depending on the authority, companies may have to renew their license when introducing a new type of game. For example, if the casino is introducing the live casino feature, their license can be subjected to changes. But once they add the live casino feature, they can add any game with the live dealer they like.
Crypto Casinos – New Era of Online Casinos
Online casinos who wish to offer cryptocurrency as a payment method must find a regulator that understands and supports crypto technology. Most European regulators won’t provide a license to such a casino as they prefer a more transparent traditional banking system. In crypto transactions, money is transferred between two users, without third-party involvement, which leaves a lot of space for mismanaging, funding terrorism and money laundering. Considering how cryptos are considered to be the future of the financial industry, we can only hope that most relevant authorities will embrace them as well.