What is a gambling license?

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A gambling license is a document that allows gaming companies to operate legally. Its acquisition is a crucial step on the path of any online casino owner. The presence of a license demonstrates that the iGaming platform meets high quality and security standards, which means players should not be afraid about the safety of personal data and deposits. Thus, a licensed website gains a good reputation and customer trust. Moreover, this document allows operators to buy official software and games and cooperate with other gambling enterprises. But what about the role of licensing for society?

Keep reading to understand why licensing is so important to prevent crime and ensure fair play in the online casino sector.

Why do we need licensing?

The legalization of iGaming is a very controversial issue and a topic of ongoing discussion around the world. The main arguments of the industry’s opponents are the high risk of financial crimes, as well as the potential danger to the financial condition and mental health of the players. In addition, many do not trust remote operators, believing they may turn out to be scammers who do not follow the rules of fair play. Unfortunately, these statements are not unfounded, however, the problem is solvable and regulation of gambling, including issuing licenses, is the solution.

So, how does legal online gambling differ from illegal and why licensing is a key step towards the prosperity of the iGaming sphere?

Preventing fraud and money laundering

To obtain a license, operators must comply with a number of requirements that are set to ensure the safety of customers by preventing online fraud and any money laundering attempts. Just some of the conditions that a potential licensee must fulfil are: the use of official and reliable software, bringing the platform into strict compliance with the principles of the AML policy, and providing the commission with complete information about the company as well as its financial condition. Thus, the licensing of the iGaming business makes the functioning of casinos transparent and significantly reduces the risks of financial crimes.

Ensuring fair play

The first question that arises among legislators who decide on the legalization of gambling is are online casinos fair? The answer is that this can be controlled by licensing trustworthy operators and weeding out suspicious ones.

Almost all gaming commissions require operators to prove compliance with the rules of fair play. Usually, applicants must provide RNG (Random Number Generator) certificates and a responsible gambling policy. Moreover, the owners of virtual casinos are required to restrict access to the resource for minors and potentially vulnerable persons. These and other requirements (depending on jurisdiction) guarantee the fairness and transparency of gambling.

Improving the reputation of the industry

Another important benefit of licensing is to improve the reputation of the industry. The more regulated the sphere of online casinos is, the less suspicion and prejudice it causes. Thus, the introduction of gaming rules and the issuance of licenses is the most important step towards removing the stigma from gambling.

Who issues gaming licenses?

Who regulates the operation of casinos and issues licenses to operators? The answer varies depending on the jurisdiction, but usually, it is a special gambling regulator. This body controls the activities of iGaming companies and decides who is worthy of obtaining a permit. The reputation of such a regulator extends to the holders of licenses issued by it. For example, permits issued by the Malta Gaming Authority (MGA) are considered among the most prestigious in the world.


Summarizing the above, we can confidently state that the importance of licensing for the gambling sphere can hardly be overestimated. Issuing permits to trustworthy operators protects players from fraud and guarantees fair play.
Contact LicensingAid to learn more about the process of obtaining a license or to get help with the procedure.

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