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Who grants online gaming licenses? Currently any online casino needs a gaming license to operate legally. Online casinos acquire these gaming licenses for two main reasons: they are a guarantee of transparency and security for the player and for the casino it is a synonym of commitment and responsibility.
In 1994 Antigua and Barbuda passed the Free Trade and Processing Zone Act. This fact allowed this Caribbean island to grant gambling licenses for online casinos internationally. Currently other countries such as Malta, Gibraltar, Isle of Man or Curaçao also have jurisdiction to issue licenses.
However, there are many countries with strong internal regulatory policies. Countries such as Spain, France, Germany, USA, Italy and England have their own regulatory bodies. It is increasingly common for countries themselves to be in charge of regulating online gambling in their own country. The countries mentioned above prohibit external licenses for online casinos. One of the reasons is that the taxes that are collected with the game go to the public coffers of the country and not of another state.
Regardless of whether the online casino has a state or international license, the user must know that the casinos meet the quality, safety and player protection requirements established by the regulatory bodies.
Objectives of these organizations is
- Protect and defend the rights of the player.
- Encourage responsible gaming in a safe environment.
- Guarantee fair play.
- Fight against gaming related criminal activities
- Guarantee fair and responsible gaming.
- Protect minors and vulnerable groups.
- Clarity in the information on rules and conditions.
- Deposit security
Who grants online gaming licenses
Online casino games and sports betting in Spain have been regulated since 2012. The body in charge of issuing gaming licenses is the Dirección General de Ordenación de Juego (DGOJ). This body is part of the Ministry of Finance.
So any online casino that wants to operate in Spain must acquire a license issued in Spain. Casinos such as William Hill, Bet365, Betfair or Bwin are licensed by the Spanish state.
In Germany the gambling system is also heavily legislated. In 2012, the Interstate Gaming Treaty (ISTG) was approved, which prohibited online casinos in the country and allowed only 20 online betting houses. However, the Schleswig-Holstein region preferred to stay on the sidelines and create its own regulation. A year later it was abolished. However, some Schleswig-Holstein gaming licenses are still active and legal. These licenses were granted with a validity of 6 years. They are currently governed by the ISTG law of 2012.
In 2005 the Gambling Act became effective in the United Kingdom to regulate online gambling. The body with authority to grant licenses is the Gambling Commission. In the UK players can only play in online casinos with a specific license from that country. The Gamblig Commission also regulates the National Lottery.
The Swedish Gambling Authority is the body responsible for ensuring the legality and security of the gaming and betting market in Sweden. The Swedish Gambling Authority is controlled by the Ministry of Finance. Its board of directors is appointed by the Government. Sweden liberalized its market on January 1, 2019. From this date, international casino and online betting companies can operate in this northern European country.
Jurisdictions with Gaming Licenses
Curaçao eGaming has been in charge of issuing licenses to online casinos since 1996. This small island in the Caribbean has a high rate of gaming license concessions. It is an organization with great experience in the sector. Curaçao eGaming is one of the oldest and most politically stable regulated gaming service providers.
The body in charge of regulating and granting gaming licenses on this small Mediterranean island is the Malta Gaming Authority (MGA). Malta is one of the countries that grants the most international gaming licenses annually. There are hundreds of international companies that are governed by MGA. And this body has a great reputation for the quality and safety of its services. Malta was the first country in the European Union to grant gaming licenses.
Gibraltar has had the authority to grant international gaming licenses since 2005, although it has been offering this service since 1998. The body in charge of issuing these licenses is the Licensing Authority. The requirements to obtain an online gaming license are very strict. Like Malta it has a great reputation thanks to the protection and security of its services.
Isle of Man
This small British island in the south of the country is one of the territories that grants the most licenses annually. The Electronic Transactions Act of 2000 and the Online Gambling Regulation Act of 2001 allow licenses to be issued online. Like Malta or Gibraltar, it is known for requiring strict requirements in order to obtain a gaming license. Also the monitoring and control of the regulatory body make it have a great reputation in the sector.
After reading the article Who grants online gaming licenses, you may also be interested in “Who is responsible for regulating gambling in Spain”