Gaming license disqualifications: What can cost you a license?

Gaming license disqualifications: What can cost you a license?

Applying for an online casino or sportsbook license is not simple, there’s no guarantee that the license will eventually be granted. Even a tiny mistake with the application can disrupt the entire process and send the applicant back to square one.

What can prevent you from getting a gaming license?

Each jurisdiction establishes its own licensing process, which is usually quite complex and bureaucratic. The authorities will carefully check the complete package of documents to make sure they’re completed fully and accurately. In almost all jurisdictions, authorities’ checklist will include: 

  • Due diligence сheck
  • Verification of key business stakeholders
  • Verification of information about the legal entity
  • Criminal background check
  • Verification of RNG certificates 
  • Bank account check 

If the applicant fails one of the conditions, the gaming commission has the right to refuse to issue a gambling license. 

Gaming license disqualifications can also result from money laundering, illegitimate operation, or anything else that goes against the rules of the jurisdiction. Here are some examples of violations: 

  • Violation of technical standards
  • Inadequate protection of customer funds
  • Violation of AML regulations
  • Violation of digital advertising rules
  • Violations of regulations on the protection of vulnerable persons

Gaming license background check

The gambling commission will check a lot of personal information when applying for an online casino license. The list will vary from jurisdiction to jurisdiction. Regardless of jurisdiction, the name, age, and address of registration must be checked. Sometimes they might also check your past employment, as well as investigating and verifying the background of shareholders and key persons. Due diligence checks can be very thorough, sometimes including background checks conducted through international law enforcement agencies. Often, there will also be a business planning check once the application has cleared the fit and proper check.

Credit check for gaming licence

Regardless of the jurisdiction where you are going to obtain a gaming license, you and your company are required to undergo a money check. Usually a bank statement is enough, but in some regions you may be required to supply capital reserves to be held in trust by the regulator. This is to protect players from fraudulent actions on your part. 

For example, in Belize, one of the requirements is to have a deposit of $500,000, which the commission will hold in trust as a guarantee against fraud and other irregularities. This price is worth considering when planning for the cost of the initial application. Recently, all jurisdictions have been very careful about the financial issue. As an example, the Gaming Control Board in Curaçao has become an anti-money laundering and counter-terrorist financing body, while online gambling itself is regulated by the Ministry of Finance and the Financial Intelligence Unit.

Criminal background check

What can prevent you from getting a gaming license besides mistakes in documents or failing identity or financial verification? In addition, each licensee undergoes a criminal background check. You may have some troubles if you have some restrictions due to your background: those who have been convicted of financial crimes or have a history of any other offenses are likely ineligible for a license. As an example, in Brazil, operators applying for a gaming license will have to prove that they have no criminal, financial, civil or administrative offenses.

FAQ

Can you get a gaming license with a felony?

If we answer this question from a theoretical point of view, then yes, you can get a license even if you have a felony conviction. It all depends on the jurisdiction in which you are going to obtain a gambling license. However, there are more tolerant regions, where almost everyone can get the cherished license. The gambling commission, meanwhile, may have questions and the process could be delayed. In many jurisdictions, such as Belarus or Brazil, you will not be allowed to obtain a license with a felony under your belt.

Can you get a gaming license with a misdemeanor?

Usually the gaming commission has full access to your history. The presence of any offense will not automatically disqualify you from receiving a license. Each case is considered individually. Unambiguous denial will only be automatic if you had offenses related to gambling, casino or lottery fraud, money laundering, and other similar offenses.

What can disqualify you from getting a gaming license?

Gaming license disqualifications may depend on different factors from one jurisdiction to another. While in some jurisdictions, such as Belarus and Brazil, a civil or administrative offense is enough to result in disqualification, in others the commission may be more sympathetic to your past wrongdoings. However, almost all jurisdictions will prohibit you from applying for a license if you have a criminal record for economic, financial, or fraudulent gambling offenses. In general, no region wants to besmirch its reputation by issuing a license to an untrustworthy operator.

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