In accordance with the new taxation rules, which came into effect on January 1, 2018, online casinos with “B2C – Type 1 Gaming Services” license (slots, board games, live games) pay annual taxes of 1.25% if their profit does not exceed €3.000.000, 1% for a profit of up to €4.500.000, 0.85% for a profit of up to €5.000.000, 0.70% for. If you wish you to kick-start your online casino business as an iGaming casino operator, the costs of starting the business are much higher, and the laws and licensing are vast as well, but the casino business eventually yields great profits as soon as it gets accepted by casino customers in the gaming market. If you own a casino or manufacture and/or distribute gaming devices, you will need to obtain a non-restricted license. If you are an owner in a publically traded company, you will not need a license unless you own more than 10% of the company. How much will an online gambling license in New Jersey cost? An application fee of $100,000 is required, that amount can later be used toward the $400,000 licensing fee if the application is.

In previous articles we talked lots about social gambling, live dealer casinos and casino white labeling , but today we want to talk about a crucial component for any gambling business. We all know that lots of online gambling operators who work without a proper license and they get by pretty well.

Some companies even make a living through legalizing sketchy gamblers, saving them some time and maintenance expenses, and basically giving them a fast-track ticket to the business. Looks like an easy way to accumulate some quick profit, but there are more disadvantages of going underground than you might think – some countries are very serious when it comes to illegal gambling (even online), so your dreams of wealth could easily end up in a jail cell. There is no need to risk working in the shadows when you can make this legal and easy, with certain countries even offering very liberal gambling jurisdictions.

Rules on Getting a License

Getting an online gambling license has to be your priority as it’s a direct pass into the business. Nothing happens without a gaming license. You’ll need it to open bank and merchant accounts, work with electronic payment system providers and buy legal gaming content. Not to mention you’ll need a license for more effective marketing and increasing customer loyalty though the reputation of your casino. It’s actually easy to get a license if you play by the rules, so follow these steps before applying for a gaming license:

• Choose countries that meet your current needs and possibilities. Do research on gambling jurisdictions: their requirements, costs, taxation policy and application processing time. You can speed up research by consulting with a lawyer.
• Start preparing personal documents in advance. You’ll need a copy of your passport, proof of address, a criminal background check and a reference from your bank.
• Make sure your casino software meets jurisdiction requirements. Prepare a list that includes detailed descriptions of software functionality and games, agreements with software providers and a certificate of the RNG.
• Check if the online casino website contains information required by your gambling jurisdiction. Many gambling jurisdictions check for information on terms and conditions, responsible gambling, self-exclusion policy, withdrawal policy, etc.

Every country has different rules when it comes to gambling regulation. Gambling laws – much like all country laws in general – tend to vary from country to country. In many places, such as the UK, gambling is heavily regulated by both government and non-government organizations to ensure that people are safe from scams. Some countries are very strict on gambling laws, thus making operators turn to cheaper and less regulated jurisdictions. You should consider offshoring if you get caught in a situation where starting a gambling service in your home country is just too expensive and difficult. Getting an online gambling license abroad could be a lot easier and faster.

However, each offshore area has its own rules and laws, and the cost of the gambling license may vary from several thousand dollars to hundreds of thousands. Before making the final choice, you need to consider all nuances of gambling jurisdictions. Here is a list of popular locations for offshoring your online casino.

Read also: Online Gambling In Eastern Europe – Brief Guide To Legislation

Antigua and Barbuda

Setting up a gambling service in this island country can be very costly. The application fee is $15,000 and the annual gaming license cost for obtaining an interactive gambling license is $100,000. On average, the application process takes up to 2 months. You can get two types of licenses: one for interactive gaming companies including online casinos, and the second one is for interactive wagering companies. Before opening an online casino you have to reserve of no less than $100,000. This will act as a form of security for your website players. The annual monitoring system fee is $25,000 per license. Plus, similar to health warnings on cigarette packages, it is obligatory to place a website banner warning users about compulsive gambling and about contacting organizations that can help them to deal with their addiction.

Curacao

Curacao is the fastest and cheapest solution to open an online casino. Getting a gambling license takes just 6 weeks. You can apply for a master license covering all game types, software providers, and product operators, or you can get a sublicense to work under the auspices of the master license. The application fee is just about €2,000; the monthly license support fee is €1,500. If your gambling business is registered in another country, you can apply for a special Ezone permit to benefit from a low net corporate income tax rate of 2%, and a 0% tax rate on gross bets. Curacao is a good choice for businesses who want to open their online casino as soon as possible. They can get a fast Curacao online gambling license while waiting for the approval of their application in another gambling jurisdiction.

How Much Does An Online Gambling License Cost Calculator

Malta

An independent republic and a member of the European Union, Malta is a large and reputable gambling jurisdiction offering affordable rates. The gaming taxes in Malta can vary depending on the class of your license. In general, online casino-style games require a Class 1 license. In this case, the gaming taxes are €4,660 per month during the first six months, and then they rise to €7,000 per month. The minimum share capital required for a Class 1 license is €100,000. The license application process is quite long because you need to go through five stages including several compliance audits. You’ll need to provide your personal and financial information and business plan with a detailed review of marketing strategies and growth targets.

Montenegro

Montenegro has been offering gambling licenses for online casinos, sports betting, poker games, etc. since 2012. They have a special “all-in-one” service packet that includes all operational costs for opening and registering your business, getting a license and payment processing. The package fee is €25.000 for the first year and €15.000 for each successive year. Montenegro offers a fast and easy license application process. A new business can be registered just for two days, and there is practically no minimum capital requirement to form a limited liability company and get an online gambling license. Another advantage of the Montenegro jurisdiction is a low 9% corporate and personal tax rate.

Isle of Man

The Isle of Man is an independent self-governing island providing a stable environment for gambling businesses. The Gambling Supervision Commission offers 3 levels of a gambling license: Network Services license, full license and sub-license. The full gaming license is a single license for your gaming business – the application fee is £5,000, the annual fee is £35,000. The licensing process takes 10-12 weeks. In order to gain a gambling license, the business should be registered in the Isle of Man and all related casino servers must also be hosted in the Isle of Man. The island offers an attractive 0% corporation tax rate, but you will need to pay the gambling duty – 0.1- 1.5% depending on the gross profit.

Panama

If you are looking to open an online casino in Panama, you should know that the laws here allow operators to be exempt of all taxes – as long as the income comes from outside Panama, there are no taxes, including income tax, sales tax or VAT. Offshore companies are also not subject to foreign exchange control, but operators must monitor game payouts and make sure that records of all transactions are available for inspection by the Government. More than that, all operators must comply with international money laundering regulations. An online gambling license costs $40,000, and the additional annual fee costs $20,000. The license lasts for 7 years.

Gibraltar

How Much Does An Online Gambling License Cost Estimator

Gibraltar has very good grounds for starting a gambling business. The cost of the license depends on the gambling type and the company structure – it may be between $30,000 and $70,000. The license is issued for 5 years with the annual extending cost around $2800. Seems like the gaming license is pretty expensive, but the main advantage of this jurisdiction is taxes. Gambling business tax is 1% from revenues. Moreover, tax can’t be higher than £425,000 and lower than £85,000 per year. This tax is very profitable and almost zero for huge companies with higher revenues.

What to Choose?

Getting an online gambling license can be tricky if you lack understanding on how certain jurisdictions work. It’s very important to prepare in advance and get your paperwork ready before applying. Don‘t forget that your software, finances and reputation will also be under the scope, so make sure everything is clear – it‘s better to get ready in advance than waste time gathering documents and choosing countries. Every country is different when it comes to gambling laws; that‘s why your goal is to choose a state that meets your specific needs. Choosing a country with liberal gambling laws might be beneficial, because you‘ll likely save time and money on processing and maintaining a license.

The Basics

• What is adding VGTs to my establishment going to cost me?

  There is no upfront cost to submitting an application to the IGB. Once you have been approved by the IGB, the yearly cost will be $100 to maintain a valid establishment license. In addition to the IGB fee you may also be required by the city you are located in to pay a yearly “sticker fee” for each VGT. This rate varies by city, please contact IGS for the exact cost for the city you are located in.

• Why should I add video gaming to my establishment?

  The average IGS client will generate $116,235 per year. Adding video gaming can help assist you in meeting your financial goals. This income has allowed many of our clients to make additional investments in their locations, further enhancing their overall establishment.

• How long is the application process? Is there a way to expedite the process?

  On average the process takes three to four months from application submittal to licensure. There is no way to expedite the licensing process, although some terminal operators may claim that they can- this is false.

• How do you assist during the application process?

  IGS has experienced staff that will walk you through the entire application process. We are able to assist in applying for a local or state liquor license, gathering and notarizing the forms needed for the IGB application and submitting the IGB application on your behalf.

• The first step after submitting your application is to get fingerprinted, this includes any owner with 5% or more of ownership, any officers and the video gaming manager. The IGB will then process your application and have a field agent conduct a site visit. IGS personnel will ensure you know who needs to be fingerprinted and the closest location to accomplish this.

• Once my application is submitted to the IGB, how long does it take for machines to be active in my establishment?

  Once an application is submitted the IGB, it may take as little as 30 days to approve your application. Once approved, machines will be moved into the establishment expeditiously, typically within 1-5 days. Once machines are in your establishment, IGS submits documentation to establish an appointment with the IGB to activate machines – this appointment is granted within 14 days of the request. This appointment date is set by regulatory protocol and outside of the terminal operator’s control. On the date of the appointment, your machines will “go live” allowing them to be played.

• You will be required to renew your license annually with the IGB.

• What is the maximum number of machines you are allowed in your establishment?

  Per the IGB, each licensed establishment is allowed to have up to six VGTs.

• What are the requirements to become a licensed establishment?

  You will be required to have a valid local and state liquor license before you are eligible to submit your application to the IGB. If you are applying to become a licensed truck stop establishment there are additional requirements.

• When and how do I get paid from having gaming machines at my establishment?

  IGS will electronically transfer the funds to your bank account weekly.

• Depending on the available space of the establishments and the number of machines, the overall gaming area that recommended is 140 square footage. The gaming area will include the VGTs, chairs and tables and the payout device. IGS suggests the machines to be properly spaced for comfort and privacy and will develop a custom layout for your establishment.

• IGS takes great pride in properly integrating video gaming to fit into your establishment. By creating a private gaming area, not only are you providing privacy to your gaming patrons, but also providing a barrier from your establishment to separate the gaming from your existing customers.

• That is entirely up to you. Many of our clients choose not to add additional staff. Others, in effort to focus on exceptional customer service, have added additional staff. Employees responsible for serving or overseeing the gaming area must be over the age of 21.

• What are the most important attributes for a successful establishment?

  Although there are a number of attributes to a successful gaming establishment, the most important are cleanliness, customer service, layout, design, hours of operation and machine mix.

• You are required to have an on-premise liquor license, which allows you to pour beer, wine or liquor to be served at the establishment.

• The majority of counties and municipalities in the state of Illinois do allow video gaming. To see if your municipality allows video gaming, please call IGS at 312.544.9856.

• Will my employees have to redeem winning tickets for cash?

  No, your employees will not need to redeem any tickets or handle any cash. IGS utilizes a kiosk payout device which is accessible by each video gaming patron.

• Can one terminal operator offer me more than others financially?

  No. The IGB has a very clear and defined no inducement policy. The revenue split is written in Illinois law and mandates 28% to the state, 5% to the municipality, 33.5% to the establishment and 33.5% to the terminal operator. Furthermore, it is a direct violation of the inducement policy to accept anything of value in exchange for signing with a terminal operator.

• Are there requirements to become a licensed truck stop establishment?

• Are there limits on the hours of operation of VGTs?

  Hours of operation of VGTs must coincide with the legal hours of operation for the consumption of alcoholic beverages on the premises. However, a licensed truck stop establishment that does not hold a liquor license may operate VGTs on a continuous basis.

Service & Support

• Yes, IGS service reaches throughout the entire state of Illinois.

• What happens if one of my machines is down or is broken? What is the response time?

  Even with proper maintenance, a machine in your facility will occasionally need repair. In these cases, you are asked to contact IGS through our technical support line. Our dispatcher will contact you, assess the problem, and offer technical assistance. In most cases, the repair and/or question can be handled remotely – the Dispatcher can access your machines remotely and restore the machine into operation. Other times, a technician will be sent to your establishment and the repair will take place.

• Do you provide marketing and advertising support?

  Yes, we work with you to develop strategic marketing plans. In accordance with IGB regulation, we can participate in financial co-op programs. IGS offers graphic design assistance on all marketing items, ensuring brand consistency. Think of us as your one stop ad agency!

• Will I have a point of contact if I ever needed non-technical support?

  Yes, you will have a dedicated Account Manager who will work closely with you.

• Do you provide staff training once machines are installed and active?

  Once machines are active, your IGS Account Manager will conduct on-site training with you and your employees. This training will cover the most commonly encountered questions from players and extensive training on how to serve gaming customers. IGS has developed key tactics in customer service to foster loyalty and repeat business and has developed a comprehensive training manual for our clients to refer back to. As staff changes we will retrain as necessary.

• How is the cash in the VGTs and payout device managed and handled?

  IGS is partnered with Thillens who provides an armored car and secure cashing carrying services.

• What is the process for installing and activating machines?

Performance & Profit

How Much Does An Online Gambling License Cost For Real

• IGS provides a client portal for in-depth reports and analyses.

• IGS establishments earn an average of $116,235 per year, which is two times the sate average!

• What makes IGS different from other terminal operators?

  With more than 25 years of experience running high performing gaming establishments much like your own, we know the needs of the establishment and the gaming guest better than anyone. We translate this knowledge into action plans for our clients helping them outperform in their respective markets. IGS clients earn nearly two times more than clients of other terminal operators.

Glossary Terms

How Much Does An Online Gambling License Cost Per

• Gaming machines similar to slot machines. Each VGT offers different games depending on manufacturer and type including video poker and line games.

• NTI is defined as the difference between cash wagered on each machine less the cash won on each machine. This amount is then split in accordance with the Video Gaming Act between the state, city/county, Establishment and Terminal Operator.

• Money that is placed into each VGT by players.

• The Illinois Gaming Board is responsible for regulating the gaming industry in Illinois.

• M3t is the manufacturer of the payout device used by IGS as well as the back-end data analytics system. The M3t kiosk serves as an ATM, bill breaker, VGT ticket redemption machine and will serve as the Player Rewards portal in the future.

• A game manufacturer used by IGS offering slot titles such as Blazing 7’s Hot Shot, Mega Spins, Hot Rocks, and American Original.

• A game manufacturer used by IGS offering slot titles such as Big City 5’s, Smash the Pig, The Big Easy, and The Wildlife.

• A game manufacturer used by IGS offering slot titles such as Diamond’s O’Dublin, Invaders from the Planet Moolah, and Count Money.

• A game manufacturer used by IGS offering slot titles such as Kitty Glitter, Golden Goddess, Black Widow, and Stinkin’ Rich.