What is an Online Casino License and Why is it Important?
India is yet to catch up on gambling in terms of popularity and is miles behind the copious recognition of the European gambling market. In India, physical gambling is limited to a handful of regions but is soon gaining a prominent presence across different Indian states.
However, things are a little different when it comes to the legality of online gambling in India. The Indian online gambling sector is still crawling – and there are still some pretty old laws in place.
So what do we mean when we say, online casino license? And how does it matter to you as a player? Let me explain that in detail.
Interesting Fact: According to the 276th report of the Indian Law Commission, the current gambling sector is valued at $360 million and estimated to achieve a mark of $1 billion by 2021, boosting the national revenue.
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Why is Gambling License Important for Indian Casino Players?
Would you be willing to deposit your real money with a shady dealer or an unreliable bank?
I know that every casino player is very vigilant with his or her deposits and financial details, so why should you compromise on the security of online gambling where we also spend money on recreational games?
Now, that’s where the whole idea of gambling license falls into the picture.
What is an Online Casino License?
As the name suggests, these gaming licenses are the authorization given to gambling sites, which upon meeting all the criteria, are legally permitted to function in that particular region.
Every Online casino needs to be certified and licensed by credible authorities like Malta and Gibraltar, which are held in high regard. Getting licensed by these is a sweet deal as it affirms the security and credibility of the casino which further makes things easier for the enthusiasts.
The requirements and the criteria of the gambling license vary from region to region.
Online Casino License Regulations That Help You as Well
Online casino business is no child’s play. With complex procedures, it is subjected to varied regulations of different jurisdictions, which makes functioning this even more complicated that can jeopardize your experience as a player as well.
Seems far-fetched? It is not.
- A fraudulent casino will eat up your money as well your personal & financial details.
- Ambiguous owners cannot be trusted.
- Not having a proper infrastructure can lead to complications in the gaming experience and also frustrate you as a player.
Therefore, it is imperative that there are some basic ground rules that govern all casinos across the world. These rules will safeguard you as well.
Some of these rules are as follows:
- The owners must have valid passports and identity.
- They should not have any criminal records.
- The owners are supposed to present the governing bodies with a concrete business plan defining the e-gaming
- platform that you will set up.
- A clear definition of the target audience.
- Presenting with fool-proof plans that forbid minors from accessing the games online.
- A clearly outlined financial plan to run this business as well as a backup plan to support it in case of crisis.
- Casinos must present a transparent due-diligence plan with respect to anti-money laundering questions, the
- safety of the customer’s funds and social responsibility.
- The owners must have a compiled list of permitted and restricted customers.
- Diversify its communication channels and allow customers to connect to the casino team via mediums like email, call, live chat and others if any.
- Set deposit limits.
- Casinos are mandated to constantly update and publish RTP stats of the games available.
- Conduct a ‘fit and proper person’ test for senior management.
- The casinos must ensure a quick response to the customer’s query.
- Casinos undertake regular testing of the gaming software.
Online Gaming License Background Check
In addition to fulfilling the criteria, the application process also involves undertaking a background check. These background checks are important to assess the viability of these owners to run a legal and secure online casino.
- The licensing is backed by high standards of the e-gaming industry and assured that it is a legit business run by credible business-persons.
- These high standards ensure that unlawful activities and those who are not running a legitimate business are kept away from this market.
For instance, the Malta Gaming Authority conducts a background check named ‘fit and proper exercise’ that especially probes into the matters of finance and management.
The jurisdiction of the location in focus will delve into your legal viability by contacting other national as well as international gambling authorities and law enforcements.
A deep study of the applicant’s financial history will follow post discussion where the organisation can be subjected to financial audits as well as requests for fingerprints.
Types of Online Casino Licenses
Since we have been talking so much about online gambling licenses, it is best to know the top organisations that have the power to make or break these online casinos. More than 70% of leading casinos have received the nod of one or more top authorities who make sure that players are in safe hands. Here are some of the top online casino license regulating authorities.
1. Alderney Gambling Control Commission
Incepted in May 2000, the Alderney Gambling Control Commission or AGC, is one of the top online gambling authorities that guarantee a safe and secure casino experience.
It provides 2 types of licenses:
- License for the B2C operations like the gambling sites that undergo mammoth transactions everyday.
- For the B2B operators that develop online gaming like NetEnt.
Afterward, it will require a yearly renewal charge running between £35,000 and £400,000 for delivering the net income more than £30 million.
2. The Malta Gaming Authority
Established in 2001, the Malta Gaming Authority (MGA) is one of the most respectable names in the world of online casinos.
It is an independent authority that oversees various sectors of the online casino industry like Commercial Halls for Bingo, Gaming Devices, Skill Games, Cruise Casinos, Amusement Machines, and much more.
The MGA undertakes fair dealing while ensuring that casinos are offering fair gaming opportunities to the players, prevent corruption, protect the casino players and also promote responsible gambling, ensuring there is integrity attached to online casinos.
MGA has licensed more than 500 gambling sites like LeoVegas, Pure Casino, Royal Panda, Wildz Casino, Rizk, and many more.
3. The UK Gambling Commission
UKGC (the UK Gambling Commission) is one of the top licensing jurisdictions with a business experience of more than a decade.
Established in 2005, which was also the year when the UK passed the Gambling Act, UKGC has been responsible for keeping an eye on the gambling activities occurring on the lands of Great Britain.
Under its lineage, any online casinos operating in India or anywhere for that matter, is bound to rules, policies as well as regulations which comprise of all the steps one can think of, right from auditing process, certifications to financial transparency and software testing.
4. The Isle of Man Gaming Commission
The Isle of Man is one more revered online gaming authority that specialises in offering 4 primary types of gaming licenses. These kinds include online gaming, controlled gaming machines, land-based casinos, and betting offices.
Experts here understand the applicants’ business plans and check for any illicit activity in the past as well as the present. The fairness, the quality of the software used for online casino games and security is all checked by the Isle of Man.
A license from the Isle of Man is one of the most coveted licenses, which immediately gives out a message of reliability, security and national support. The Isle of Man licensing cost is not for faint hearts. It offers 2 licenses:
- The Full OGRA License
- Sublicense
5. Gibraltar Regulatory Authority
The Gibraltar Regulatory Authority (GRA) is a well-known, trusted and independent licensing & regulatory authority located in Gibraltar that exercises responsibility across a range of gambling sectors that ensure the safety of the players.
In fact, GRA authored and published the handy guide ‘Remote Technical and Operating Standards’ that help applicants familiarise themselves with the requisites for obtaining a GRA license.
Wrapping it Up
The future of online gambling is always uncertain owing to its dependency on technology. For instance, blockchain might soon come in as a transaction model for many online casinos which would mandate respective authorities to revisit their security model and many other details.
Online gambling has a lot to offer responsible players who are looking for recreational and fun ways to enjoy the casino world.
