The online gaming industry is strictly regulated in order to protect both customers and operators from money laundering, fraud, and other types of criminality. While no one relishes the idea of being so severely controlled that it stifles innovation and progress, some amount of regulation is required. Fortunately, many countries find a good balance between safeguarding stakeholders and enabling the online gaming business to develop and evolve.
Keep in mind that all online gaming sites must be registered, obtain an offshore gaming license, and comply with at least one jurisdiction. As failure to do so poses a significant danger to you, your company, your brand, and the reputation of the industry as a whole.
Every business is as unique as the person behind it, and Tetra Consultants’ specialist knows that each one has its own set of demands and visions. With years of expertise in the online gaming industry, we understand the intricacies of each jurisdiction and can thus give invaluable advice on which offshore gaming license would fit which client.
In this article, our team of licensing experts has outlined the steps on how to get an offshore gaming license so that you are aware of what is needed and done at every step of engagement.
Steps to get an offshore gaming license
- Planning and strategizing
- The first step in getting an online gaming license is to choose a jurisdiction where you will apply for your license. Getting your gaming license is one of the most important steps in setting up an online gaming business but there are many more components that you can read about in our guide to starting an online gaming business.
- Online gaming businesses can be extremely lucrative but it is also a sector that attracts those with corrupt intentions. Since online gaming became a booming industry it has become fraught with illegal, criminal, and unethical elements. To counteract this situation online gaming businesses must now hold a license and meet certain regulations and standards in order to operate.
- Depending on the jurisdiction where you want to incorporate and license your business you may need one or several licenses. For example, in Malta or Curacao, one gambling license covers all forms of online gaming – lottery, bingo, casino, chance, skill, fantasy, etc. In other jurisdictions, gaming authorities require that for each game you offer on your website you get a separate license. For example, in the UK you may need to get three different licenses for one site.
2. Registration of the offshore gaming license holding company
- The registration and incorporation of your gaming entity must be in the same country as the license you are going to hold. This can be in any country where online gaming is considered to be legal and regulated. Based on our experience, company formation and securing the Isle of Man gaming license and Malta gaming license are the simplest and/or cheapest top-level jurisdictions for setting up your gaming business.
3. Provision of legal documents and policies tailored by our legal experts
- With your entity being registered, you need to officially begin the preparation of policies and legal documents concerning the licensing of your entity and gaming website requiring underage gaming policy, responsible gaming policy, privacy policy, and AML/CFT policies.
- Tetra Consultants' team of legal experts is experienced with the drafting of aforesaid documents and policies. We will provide a tailor-made prototype for your review and comments and move forward with the license application process.
4. Establishing the economic substance in the country
- Many regulators prefer to authorize the applicants who can establish the local presence of the entity in the way that the entity has a locally registered office and employees are residents of the country.
- Tetra Consultants are proficient in providing local offices and recruitment of locally resided employees. Our team will enlist the local offices available for your review and finalization of the same. We additionally assist applicants with the drafting of the lease agreement required to be appended with the license application.
5. Submission of application
- The procedures for gaming license applications vary across all jurisdictions. Each application is assessed against the published requirement. In any case of non-compliance with specific gaming license requirements, the authority may reject an application for issuing or registering a license. If approved, the company is deemed to have agreed to conduct its online gambling business under the laws of the given jurisdiction.
- The process of collating documents for the submission of a license application can be tedious as well as time-consuming if you are not well-versed with the process. Additionally, your work does not complete here, you need to keep a proper update and track of your application and negotiate with the regulatory authorities if required. Tetra Consultants' team of licensing experts will not only support in the pre-application process but also throughout the negotiation that takes place. Moreover, we continue to ensure that your entity is in compliance with the regulations of the country once the gaming license has been granted.
6. Establishing a corporate settlement account for the business
- One of the biggest obstacles for online gaming operators is to have fully functional payment processing operations so that gamblers can easily transfer their funds into their player accounts. Because online gaming is widely regarded by banks as a high-risk industry, you need to use gaming-friendly fintech services.
- Our banking team will thrive open a corporate settlement account as well as a merchant bank account for your entity to ensure the smooth operation of the financial aspect of your business.
- We expect to complete the corporate bank account opening process within 4 weeks upon the registration of entity in the proposed jurisdiction.
Conclusion
- Offshore gaming licenses ensure that the operations of gaming businesses are legal. It is therefore extensively advised that an offshore gaming license be obtained before you present your online gaming business to induce the user's trust and to maintain a good reputation for your gaming website.
- Tetra Consultants provides advanced corporate solutions, which include step-by-step guidance through the process of incorporation of offshore entities and corporate bank account opening worldwide as well as assisting to obtain gaming and other offshore financial licenses.
- We do more than just help you get an offshore gaming license. We have worked hard to provide a comprehensive range of services that we know will fulfill our client's needs and objectives. We have been in the gaming license industry for years and are familiar with any demand that may arise, therefore we have ensured that we can meet it. With our experience in all of the major offshore jurisdictions, links with regulators and authorities, and a large network of international partners, we can deliver services to meet your every requirement.
Contact us now to know more about offshore gaming licenses. Our team will revert within the next 24 hours.
