Starting an iGaming business: the questions we hear most

Being in the iGaming space for around 10 years, we understand more and more how everything works.

There are a lot of questions that come up when someone is looking to start an iGaming business. Do you actually need a licence? Which jurisdiction should you choose? How much money do you need? What about banking, payments, crypto and game providers?

Here are some of the most common questions we come across.

Do I need a licence to open an online iGaming business?

The simple answer is yes.

Even though you can operate without a licence and no one will necessarily force you to close your business down, the biggest issues will occur when trying to open bank accounts, set up card or crypto acquiring, and work with game and platform providers. Most of them simply will not work with you without a licence.

What jurisdiction should I pick if I want an iGaming licence?

There is no right or wrong answer here.

Mostly, it will depend on what your initial investment is to start the business, how quickly you want to launch, and whether you really care about the reputation of the authority you are getting the licence from.

Anjouan

Anjouan is the cheapest out there in the market. Due to the high volume of applications, the licensing process can take a very long time.

Nevis

The Nevis licence is currently one of the hottest picks. It is reasonably priced, it is a government-issued licence, and the jurisdiction has over 40 years of experience in the financial industry.

Applications are processed relatively quickly. It also does not require local management.

Curaçao

Curaçao is a veteran in the offshore gaming space. However, since the recent licensing reform, a lot of casinos are moving away from Curaçao due to the complex licensing process, high fees, difficult renewal process, and the need to have more than one company to operate efficiently with payment providers.

How much money do I need to start an iGaming business?

This all depends on which country you pick to apply for a licence.

However, the benchmark should start from around $140k–$160k. This would include licensing costs, company formation and preparation of legal documents.

Choosing a game/platform provider

A lot of companies in the market are actually aggregators and don't produce their own platforms or games.

Those aggregators will have signed agreements with actual developers and sell their games on their behalf.

So depending on what type of iGaming business you're building, whether it's a casino or sports betting, be careful with who provides your games and platforms, as you might end up paying double the price.

Crypto casinos

Almost all crypto gaming companies can get an iGaming licence and operate in the market just like the rest.

The only important factor is that you need to ensure you can provide proof that you conduct KYC and due diligence on your players.

Secrecy and privacy don't work hand in hand with regulation and licensing.

Prediction markets

A hot topic, but not a lot of people know that prediction market businesses outside the US fall under the same iGaming licence. There is nothing specific or different you need to do.

Banking and payments

You don't need to wait until you get a licence to apply for a bank account.

Traditional banks will not usually open an account for a casino business. However, Electronic Money Institutions will.

Choosing the right one can be difficult. It will all depend on your operation and the structure of the business.

Can I appoint someone else as the shareholder but still be in control?

Having nominee shareholders is common practice, and no one will scrutinise you for that.

It is important to provide a Declaration of Trust during the licensing application or banking application.

Can I be the one person running everything?

No.

You can be the Director and Shareholder, but jurisdictions will require you to have a compliance officer who is independent.

Any future hiring does not need to be disclosed as long as those people are not Directors.

How often do I need to renew the licence?

Offshore, a licence is issued for one year, so the renewal needs to be done a few months prior to the expiry date.

The process to renew is not as vigorous as applying for a new licence.

Do we assist with licensing, AML and company formation?

We do.

Usually, we are involved from the initial introduction call until you get your licence and have your operations ready, together with your bank accounts.

We hold your hand through the process.

If you have any additional questions, please shoot them over. We are happy to assist and answer them all.