Opening online casinos or launching betting projects is a complicated process and may not be available in all countries. In Ukraine, iGaming is still outside the law's purview and is making only its first steps towards legal regulation. While in several European countries, it is a licensed and legal way of running a business that benefits each party. The experts of Soft2Bet explain how it works in different countries.
Dot on the Map
The right to run an online gambling business is granted to operators with licenses that regulate their activities and determine the geographical borders within which these activities can occur. But the national governments that decide which licenses to support and which not, always have the upper hand.
Given that online casinos and other iGaming projects have limited permitted locations, one of this business's key aspects is choosing the suitable jurisdiction. Some licenses allow operation only in one country, some allow operation within one state or province, and some open up entire continents. For example, three international licenses obtained by Soft2Bet during four years of existence allow operating in the countries of continental Europe, Scandinavia and South America.
One of the most popular licenses in the world is the Curaçao one. The Caribbean island, former Netherlands colony, is now the center of the international gambling business. "The most simplified licensing procedure, six months to launch an iGaming project and opportunity to work on several continents simultaneously have attracted many gaming companies to the country," Soft2Bet experts report.
The Curaçao island has two types of permits: a master license and a sub-license. Both of them enable launching any iGaming projects. But master license holders can issue sub-licenses to new operators. Over the whole period of legal iGaming existence, the Ministry of Justice of Curaçao has issued only four master licenses. Such service operators as Soft2Bet and other similar companies receive a so-called sub-license from the master license holders.
The European iGaming
The Maltese license is also very influential in Europe. Although its population barely exceeds half a million residents, Malta's iGaming license is considered one of the most reputable in the world. The Malta Gaming Authority (MGA), the gambling regulator, has a strict approach to licensing, detailed legislation, rigorous inspections, and financial monitoring. The regulator inspects all aspects: the business history of the company operator's owners, the business plan of the project, the availability of guarantee funds, the technical compliance of the gaming platform, etc.
The MGA gives 60 days to start a business after issuing the license. It can be revoked in case of failure to launch the business. Moreover, the regulator checks the compliance of the announced and actual mechanics of the game and conducts a mandatory audit after the operator's first year in business.
"Such a systematic and diligent approach yielded results. Governments began to trust the Maltese license. Therefore, Malta's position on the European and international market was solid," Soft2Bet representatives claims. Germany, Sweden, and Finland accepted its license.
But over time, governments began to think about creating their gambling regulators. Because then tax revenues from iGaming remain inside the country. And besides, the proper level of players protection becomes possible. It has driven the development of national online gambling regulation. Sweden was one of the first countries to complete this process, as now the Swedish Gaming Authority (SGA) carries out licensing there.
Soft2Bet in Scandinavia
“Both the regulator's structure and Swedish iGaming legislation were based on Maltese experience and with direct help from Malta," Soft2Bet experts claim. But the Scandinavian approach in some ways surpassed the Maltese one in terms of diligence and control.
Just as in Malta, in Sweden, they check the business history of each business owner with over 10% voting power. And if the regulator finds evidence of faulty business, it can refuse to issue a license. Also, it carefully checks the credit history and financial capacity of the company.
All documents should be submitted in Swedish. Moreover, suppose a licensee is not a resident of Sweden or the European Economic Area. In that case, the company must appoint a representative in Sweden with legal powers to act on behalf of the company.
"Auditing the business plan, technical compliance of the platform, certification by independent auditors are mandatory stages of the process. The regulator also requires guarantee funds to cover possible fines," Soft2Bet experts explain. The license is issued for three years after meeting all the procedure’s requirements. The license can be revoked if the company violates the rules of interaction with the players.
The Swedish government's practice of imposing temporary restrictions on online casinos during the pandemic was unique. It introduced limits on weekly deposits for players, and the maximum bonus amount for operators. Furthermore, the time players spend at online casinos was also limited: the number of logins per day, week and month was restrained.
"Scandinavian countries are very attractive for iGaming operators. Firstly, these countries have rather high living standards. Secondly, they belong to a developed culture of casinos and sports betting. Swedish players know that the gambling product has many certificates, a license and undergoes constant audits. Everything is fair. For them, such games are not different from any computer game," Soft2Bet experts claim.
Since 2020, more and more countries have been introducing their iGaming regulations and paying attention to the state licensing system. With the responsible approach of all parties, the global iGaming market is becoming more competitive and transparent. Each party wins, both the business segment with irrefutable proof of its gaming product's quality and players, who can be confident that everything is fair and under control.
