If there is something you should always check in a gambling site it’s legit one. Between the great bonuses, games, and instant cashouts, who’s the regulatory organism that endorses the trustiness of all those promises comes as important as the fun you will have with it.
Many countries have gambling regulatory bodies, transparent and strict enough to provide licensing operating licenses for current and aspiring gambling providers around the web. Among all of them, two of them had marked the difference since the inception of online gambling, The UK Gambling Commission and the Curacao eGaming.
Why both share the interesting fact is located in islands in the Atlantic ocean, their endorsement for any gambling operator becomes a source of debate enough to make or break any business in this industry.
Why do online gambling operators need a licence?
Contrary to any other ordinary business, gambling operators belong to industries that can be harmful to customers just in the same line as alcohol, tobacco, and drugs. For that reason, online gambling operators require more strict legislation and supervision from a regulatory body in order to prevent exploitation and harming over legal age users and more vulnerable audiences.
Online gambling has become such a profitable business that everyone wants a piece of it. Global revenues of €47,61 billion in 2019 prove it.
This conditioned the increasing presence of illegal gambling sites not only popping and disappear without further notice but also cloning another reputable luring unaware or dumb customers to their Ponzi and scamming schemes.
Reputable legislation is what makes the difference from gambling in a glittered casino or a backstore joint in terms of security for gamblers. Before something goes wrong, regulatory bodies will be there keeping an eye for your well being. For thrill-seekers, flirting with the unlawful might add another layer of excitement but are completely powerless if they get cheated and cleaned.
Depending on what regulatory body an online gambling site waves its license, resides its ability to operate on certain countries especially prized ones like the UK, Australia, Singapore and the US.
Stricter licenses come hard to obtain but allow a larger market to operate while a more lax regulation will allow you to start immediately with a reduced target audience.
With all that in consideration, let’s see what a gambling operator should look to become a fully licensed and trustworthy provider.
UK Gambling Commission
Located in the North Atlantic, the UK commonwealth has a long history influencing the world thanks to its cultural, economical and political prowess. But also the gambling industry as a whole.
The UK Gambling Commission is one of the most respected and strictest gambling regulatory bodies in the world. The 2005 gambling Act updated the powers and reach of the UK jurisdiction to protect gamblers from predatory practices while giving fairness and transparency to an industry in a time where online gambling allowed malicious operators to cause any havoc to citizens and go away with the crime.
Since its creation, the UK Gambling Commission has been a proponent of several customer responsibilities and awareness measures to ensure that every gambling operator under its license delivers to its customers and the general population a highly regarded product under the most ethical considerations.
- UKGC license holders are entitled to operate almost every single country in the world where online gambling is not banned.
- Better customer practices. Operators comply with player protection, not only from scams, and fund thefts but also from engaging in compulsive gambling behaviour.
- Immediate trust from potential customers.
- One of the most stable countries both economically and politically to create a business.
- UKGC license only entitles permission for an operator to provide service in one of the following: casino, sports betting, horse racing, lottery, poker among other skill and chance games. Any additional business line will require an additional license.
- Operating licence applications take around 16 weeks to process.
- The initial investment is quite huge considering that the application submission might go over £42,000 (almost €46,000) refundable deposit on fees per license.
- While the application process can be a simple process, legal and Gamstop advisors must be contracted to fully comply with the strict requirements necessary for a license. Operators that have no Gamstop and KYC verification procedure won’t be allowed to accept British customers.
Much is praised about the UKGC when it comes to regulating the gambling industry. Although not exempt of some pitfalls, operators under the UKGC can’t relax in their effort to provide a premium and fair service to their customers as every incurring fail to protect them is heavily punished.
This strict approach is the reason that not only players but also governments trust in it allowing to operate inside their frontiers. those licensees that were able to get such endorsement.
Curaçao is a well known Caribbean destination thanks to Its famous pristine waters and incredibly warm people. Despite being part of the Dutch Kingdom, Curaçao is a completely autonomous and stable nation that has been a provider of remote gambling licenses since 1996.
Thanks to its light paperwork, bureaucracy and English speaking authorities, Curaçao has become the perfect location for startups or those with a lower budget.
When compared to other gambling jurisdictions, where strict and costly measures are implemented, Curaçao holds the upper hand among gambling startups thanks to its convenience. This makes it pretty attractive for those wanting to provide all these services in less time and cost. However, it doesn’t go exempt from certain pitfalls
- Curaçao offers only one type of license to cover all forms of interactive eGamming: Casinos, Sports Betting, Exchanges, Lottery, Games of Skill and Chance.
- Operating from Curacao is the 0% VAT and 2% tax on corporate profits.
- Cryptocurrencies are permitted methods of payment for compliant operators.
- processing periods can take from 2-4 weeks
- The Curaçao Jurisdiction offers a complete turnkey package for less than €25,000 that includes consulting, the formation of Curaçao and EU companies, banking assistance, leased hosting, administrative and legal services, among many others.
- The Curaçao jurisdiction doesn’t involve disputes between customers and operators.
- Operators under the Curaçao license have access restricted to access major markets like Great Britain, Australia, Sweden among others. Limiting their possibilities to actively promote their services.
- One of the founding members has to be a resident of the Antilles
- Servers and data hosting the site must be physically present in the Curaçao territory
Curacao jurisdiction might provide an uncomplicated and quick resource to obtain a remote gambling license at low fees. A relatively uncomplicated and quick procedure for obtaining the license and low fees.
However, in the past few years, there had been cases of operators scamming players, and becoming rogue. Incidents that had tarnished the reliability of the license and by extension its accessibility to most profitable markets where consumers protection requirements are higher.
The UKGC and the Curaçao eGaming take gambling seriously as has been proven with outnumbered license suspensions, revocations and blowing fines for those who don’t walk the line. However, their targets are widely different.
The UK Gambling Commission enforces customer awareness to operators from the very beginning, making a feat to obtain a license from it. But is this excluding filter that allows customers access providers that won’t abuse them, and revert the damage done with problem gambling and the stigma associated with it.
On the other hand, Curaçao eGaming license is more focused as a business model that can be convenient for operators but has very little value and reputation. Unless Curaçao’s legislation doesn’t pivot into a more customer aware focus and enforces it into their current licensees, it won’t be considered different than a trial proposal to test the gambling industry in smaller markets.
Providing integrity and fairness to an industry that has fallen under the grey shades within the public opinion has to be the main reason to deliver a license for any gambling jurisdiction. Not being able to comply simply shows how careless they are to protect not only customers but also operators as well.