What is a crypto (or bitcoin) casino? Any gambling platform which accepts cryptocurrency and allows you to make deposits and withdrawals in it 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 the blockchain are transparent and safe. Bitcoin casino customers can be calm and confident in the result when making deposits and withdrawals.
- 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
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 offshore) 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
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.
What documents are required?
There are different gambling regulations in different countries. The final set of required documents always depends on the rules of the jurisdiction. However, it is possible to name the most common documents that operators are usually required to prepare.
- Proof of no criminal record
- Copies of IDs of platform owners and key persons
- Bank statements/copies of utility bills
- Games and software description
- Business plan
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:
- The 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 next chapter, we’ll list the most popular locations to obtain a bitcoin casino license.
License for bitcoin gambling: where to register
The most popular jurisdictions, which issue licenses for cryptocurrency gambling are Curaçao, Malta, Kahnawake, Isle of Man, and Gibraltar. In the table below are some details about each location’s pros and cons.
|Curaçao||Local body issues permits for both fiat and bitcoin gambling platforms. It is a good choice for operators not only because of the favorable licensing conditions of the 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, Curaçao’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.|
It is worth mentioning that in the near future, Curaçao gambling laws will change a lot. Amendments to the legislation will affect the issuance of licenses: now a special licensing authority will be responsible for this process. In addition, the total price for issuing a permit will be set. It will be slightly higher than the current cost of the document. It is also expected to tighten the requirements for operators in terms of compliance with the AML policy.
|Malta||Malta, 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.)|
|Kahnawake||The main pros of licensing in Kahnawake are the relatively low cost of obtaining a document ($35,000), the 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.|
|Gibraltar||In 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.|
|The Isle of Man||The Isle of Man offers casino operators (including cryptocurrency ones) very attractive licensing conditions. Among the advantages of this jurisdiction are its unquestionable reputation, low taxes, support from local authorities and the ability to obtain just one permit for all types of gambling. The price of obtaining a license is £5,000 and the mandatory annual fee is £35,000.|
Advantages of operating a crypto casino
- By accepting cryptocurrency, you expand the list of potential customers and show that you keep your finger on the pulse of the times and follow the development of technology.
- As we already mentioned, all deposits and withdrawals in crypto are safe and transparent. It is a huge plus not only for both customers and honest casino owners.
- Today it is not so difficult to find a jurisdiction that issues licenses for crypto casinos. After acquiring an offshore permit, your platform will be able to attract players from all over the world.
- Making deposits and withdrawals in cryptocurrency is not only safe but also fast and free. That is, the client does not need to pay any commissions, which is another argument in favor of non-fiat money.
- Regulars of crypto exchanges and bitcoin casinos appreciate the anonymity of transactions. This allows you not to fall into the field of view of any financial organization.
Disadvantages of bitcoin casino
- Some countries ban crypto casinos. Moreover, among jurisdictions that issue gambling licenses, there are some which don’t license bitcoin casinos. For example, in the UK there is no direct ban on the acceptance of cryptocurrency by licensed websites, however, the strictest local gambling regulation regarding AML policy prohibits anonymous transactions, which are any transactions with cryptocurrency.
- It is almost impossible to predict how cryptocurrency regulation will change in different countries of the world. The fact is that bitcoin is not backed by anything (unlike fiat currencies, backed by the authority of the state), and therefore many governments do not hurry to recognize it.
- Those who visit crypto exchanges know how many electronic currencies fluctuate. Casino operators must constantly monitor the value of each coin on the crypto exchanges to be sure that the company has enough money to pay out the players.
How LicensingAid can help you
Contact our experts to simplify and speed up the launch of your licensed online crypto casino. In addition, our experienced specialists will advise you on gambling regulations in different jurisdictions, help you register a gambling establishment and trademark, open a high-risk merchant account, prepare all necessary documents, choose the most attractive design for your website, etc. Contact us and start your journey into the wonderful world of gambling.