Why do you need a bitcoin gambling license?

What is a crypto (or bitcoin) casino? Any gambling platform which accepts cryptocurrency can be called like this. Some of them accept only crypto, others – crypto and fiat currencies. 

Why do iGaming operators and players choose bitcoin casinos? There are several reasons.

  • All transactions in blockchain are transparent and safe
  • There is no commission for the money transfer
  • Transactions are fast (usually an hour maximum)
  • Cryptocurrency is a trend: some believe that bitcoin is the future of the economy

To run a crypto casino (as all other iGaming platforms) you need a bitcoin casino license. It guarantees operators a high level of audience trust, and players — safety and reliability.

License for bitcoin casino

License for bitcoin casino

Nowadays a lot of countries ban virtual gambling or/and cryptocurrency. This makes online casino licensing impossible in those jurisdictions. Fortunately, there are numerous countries (mainly offshores) where you can obtain a permit and launch crypto gambling websites legally. With such a license operators are able to attract players from different locations without problems with the law. Also, it gives an opportunity to buy official games for the platforms.

Let’s consider what jurisdictions issue bitcoin casino licenses and what is required to become their holder. 

How to get a crypto gambling license

How to get a crypto gambling license

There is no special procedure for a crypto gambling license application. Operators need to choose a jurisdiction and comply with all local regulatory licensing requirements. Remember that some countries have all-in-one gambling licenses (which cover both virtual casinos and sports betting), while others prefer to issue separate permits. It means that you’ll need to get a special license for each iGaming activity type. 

So, what are the most common requirements you need to fulfill to start operating an online bitcoin casino?

  • To register a company and place servers in the jurisdiction (in some cases it’s enough to place only the main one);
  • To open a bank account;
  • To collect mandatory documentation. The standard pack includes data about business founders and stakeholders, company formation, and origin of funds;
  • To prove that your platform meets the AML and KYC requirements;
  • To place the info about gambling addiction on your website and to prohibit access to it for players under 18 (21 in some jurisdictions);
  • To pay application fees and finally to submit an application for getting a license.

Choice of jurisdiction 

How to choose the best variant among numerous gambling jurisdictions? The best way is to ask for the help of experts. LicensingAid provides full support for the licensing process: from choosing a country to collecting documents and submitting an application for a bitcoin gambling license. Feel free to contact us and get a consultation. 

There are several important criteria that you should rely on when choosing a jurisdiction:

  • Reputation of the country in the online gambling market
  • Application fees and tax rate
  • The complexity of the licensing process, the number of required documents, the processing time
  • Gambling audience of the jurisdiction (players from which countries play on the platforms with a local permit)
  • Types of licenses. Does a license allow you to launch all games or just virtual casino/online betting?

In the last chapter, we’ll list the most popular locations to obtain a bitcoin casino license.

License for bitcoin casino

License for bitcoin gambling: where to register

The most popular jurisdictions, which issue licenses for cryptocurrency gambling are Curacao, Malta, Kahnawake, and Gibraltar. In the table below are some details about each location’s pros and cons.

PlaceInfo
CuracaoLocal body issues permits for both fiat and bitcoin gambling platforms. It is a good choice for operators not only due to an impeccable reputation of a jurisdiction, but also because of the lack of tax on gross gaming revenue. iGaming businesses pay only a corporate tax on the profit (2%). The cost of obtaining a license will differ in each unique case, but anyway, Curacao’s permit is one of the cheapest on the market. Last, but not least is that the island has a simple and transparent application procedure.
MaltaMalta, as a member of the European Union, issues some of the most prestigious gambling licenses. Pay attention, that Malta gaming authority doesn’t offer one type of  license. Operators, who want to legalize a business here, should apply for a certain type of permit (betting license, bingo license, lottery license, slot machine license, etc.)
KahnawakeThe main pros of licensing in Kahnawake are the relatively low cost of obtaining a document ($35,0000+), complete absence of taxes, and universality: the license covers all markets except the United States. The only problem is that there are several types of licenses in the jurisdiction and application requirements will depend on what you’ll choose.
GibraltarIn Gibraltar fees and taxes policy is very simple. B2C gambling businesses pay £100,000 for the license and 1% of the income tax. Gibraltar is also a prestigious jurisdiction with low competition in the gambling sphere.

Contact our experts to simplify and speed up the launch of your licensed online crypto casino.

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