Obtaining an online gaming license is an essential step in launching an online casino or sportsbook. But what is a gaming license? It is a permit to operate legally under the jurisdiction of one of the regulated markets. Operating without a license places the operator in a gray area, risking severe consequences such as fines, platform blocking, and even criminal charges.

In this article, we will explore the advantages of holding an iGaming license, the conditions for getting one, and the best countries for gambling operators in 2025. Additionally, we will discuss what can lead to the revocation of a license and how industry experts can simplify the process of obtaining and maintaining it.

Benefits of operating with a license

So, why does an operator need to obtain a gambling license? There are several important reasons. We are talking not only about the absence of problems with the law, but also about reputation, as well as the possibility of cooperation with important partners. Here are the 5 most compelling reasons for obtaining an iGaming license:

1. Completely legal operation

By operating under a gambling license from one of the popular jurisdictions, you completely protect yourself and your business from legal problems. It is important to understand that owners of unlicensed online casinos face serious sanctions. Among them are large fines, blocking of a gambling website, and even prison sentences. Thus, by saving on a license, illegal operators risk losing everything.

2. Cooperation with well-known and respectable banks ad payment systems providers

Every business needs corporate and merchant bank accounts. However, not all banks are willing to work with gambling companies. Having a license saves the situation, because it symbolizes quality assurance and adherence to the letter of the law.

The same applies to payment system providers. The more widespread and recognizable payment methods you use on the platform, the more trust you will evoke among players.

3. Purchasing official gaming software

High-quality and attractive gaming content is essential to the success of any online casino. It’s obvious that purchasing it is not an area to skimp on. At the same time, only official developers working with licensed operators can guarantee sufficient quality, transparency, and uninterrupted operation of gambling software.

4. Gaining trust among potential customers

Having a license instills confidence in players, while its absence can deter and alarm them. A license guarantees the security of visitors’ funds and data and ensures the fairness and transparency of the gaming process.

To maximize this benefit, prominently display your license on your website for easy access.

5. Being a part of a global gambling community

An iGaming license is your gateway to the global gambling community. It allows you to exchange experiences, collaborate with other operators, meet inspiring people, and participate in large-scale, vibrant industry events.

So, as we found out why it is necessary to legalize online casinos, it is time to answer the question of how to get a gambling license.

Basic licensing requirements

The gaming license requirements can vary greatly from jurisdiction to jurisdiction. Nonetheless, many requirements are common across most countries. Let’s examine the most crucial ones that every iGaming operator must fulfill.

• Registration of a legal entity

Before applying for an online gambling license, you must register a company in the jurisdiction. This process usually does not take long, but requires the payment of appropriate fees.

• Business plan

The regulator will likely require you to submit a detailed business plan. This document should outline your business goals, development and marketing strategies, and explain how your project will stand out from competitors. By doing so, the licensing commission can assess your company’s potential and determine if you can meet the jurisdiction’s regulatory and reputational standards.

• Proof of financial stability

The licensing authority will certainly want to assess your financial capabilities. It is crucial for the commission to ensure that your company has sufficient funds to launch and operate the business, as well as to pay winnings to players. Financial verification often includes providing information about the source of income or investors. Some jurisdictions also require deposit capital.

• Responsible gambling compliance

Implementing responsible gambling measures is a mandatory step in preparing to obtain a license and launch your project. Firstly, the operator must ensure that minors are protected from gambling. Secondly, it is crucial to inform the platform’s audience about the risks of developing gambling addiction and provide information on ways to combat it. Responsible gaming policies should also include self-exclusion mechanisms and the option to set deposit limits for potentially vulnerable players.

• AML/KYC compliance 

Given the high vulnerability of the gambling industry to fraud, money laundering, and other financial crimes, compliance with AML (anti-money laundering) policies is a critical requirement. This includes customer verification (KYC or Know Your Customer), monitoring all transactions, and promptly responding to suspicious money transfers.

• Background checks

During the licensing application process, operators undergo a background check. This inspection allows the regulator to ensure that the applicant has no criminal history and possesses the necessary competence to run a gambling business.

• Technical standards and fair play

Compliance with technical standards is another mandatory requirement for operators. To prove the fairness and transparency of the gaming process on the platform, the applicant must provide a certificate for the random number generator (RNG) used on the website.

• Following local laws

Compliance with the gambling legislation of the jurisdiction is essential for obtaining a license. Additionally, the operator must ensure that they do not violate any other laws of the country. Seeking legal advice is preferable to ensure full compliance.

• Data protection

Protecting player data is a top priority for any online gambling operator. All available security mechanisms must be implemented and compliance with jurisdictional data protection standards must be ensured.

• Payment of fees 

Submitting a license application requires the payment of licensing fees, which can vary significantly between jurisdictions. This variation is an important factor to consider when choosing a country to obtain a license. Additionally, it’s essential to understand the fees the operator must pay after getting the license. Commonly, there are annual fees and license renewal fees.

Top licensing jurisdictions

Choosing the right jurisdiction for obtaining a gambling license is a crucial decision that can impact your business’s success. Different jurisdictions offer varying benefits, requirements, and costs. Here, we’ll explore some of the most popular licensing jurisdictions for online gambling in 2025: Curaçao, Anjouan, Costa Rica, Isle of Man, Kahnawake, Malta, and Gibraltar. Each location provides unique advantages that cater to different business needs.

Curaçao

Curaçao is one of the oldest and most popular jurisdictions for iGaming licenses. Its straightforward and cost-effective licensing process attracts many operators. The Curacao gaming license covers all types of gambling activities, simplifying the process for businesses. Additionally, Curaçao offers a favorable tax regime, making it an attractive option for operators looking to maximize profitability. However, it is essential to ensure compliance with its regulatory requirements to maintain the license.

Anjouan

Anjouan, part of the Union of the Comoros, is emerging as a competitive iGaming licensing jurisdiction. Known for its affordable licensing fees and relatively quick application process, Anjouan is gaining popularity among startups. The jurisdiction provides a comprehensive regulatory framework, ensuring operators adhere to high standards of operation. Anjouan’s growing reputation is supported by its commitment to maintaining a robust and fair gambling environment.

Costa Rica

Costa Rica offers a unique approach to online gambling licensing. In fact, Costa Rica does not issue gaming licenses. Nevertheless, iGaming operators can legally operate in the jurisdiction. And all they need to do is register a company there. This approach results in lower costs and fewer regulatory hurdles. However, operators must ensure they comply with international standards to build trust with players and partners. Costa Rica is particularly appealing to startups due to its minimal bureaucratic requirements and cost-effective solutions.

Isle of Man

The Isle of Man is renowned for its robust regulatory framework and high standards. Obtaining a license here demonstrates a commitment to fairness, player protection, and financial stability. The Isle of Man offers a comprehensive support system for operators, including tax benefits and strong infrastructure. However, the licensing process can be rigorous and requires substantial financial investment. Successful licensing in the Isle of Man significantly enhances an operator’s credibility and market reputation.

Kahnawake

Located in Canada, the Kahnawake Gaming Commission is one of the oldest online gambling regulators. Kahnawake offers a straightforward licensing process and ongoing support for operators. The jurisdiction is known for its commitment to player protection and fair gaming practices. Operators benefit from reasonable licensing fees and a well-established regulatory framework. Kahnawake’s proximity to North American markets makes it an attractive option for operators targeting this region.

Malta

Malta is a leading jurisdiction in the Internet gambling industry, known for its stringent regulatory standards and comprehensive licensing process. A Maltese license is highly respected and recognized worldwide, offering operators significant credibility. Malta provides a well-developed infrastructure, favorable tax regime, and a supportive environment for iGaming businesses. The application process can be demanding, but the benefits of operating under a Maltese license are substantial, including access to the European market.

Gibraltar

Gibraltar is another top-tier licensing jurisdiction with a strong reputation for regulation and player protection. The licensing process in Gibraltar is thorough, ensuring only reputable operators gain approval. Operators benefit from a favorable tax regime, excellent infrastructure, and access to the European market. While the application process can be complex and costly, the advantages of a Gibraltar license include high trust and credibility within the industry.

Selecting the right licensing jurisdiction is a strategic decision that requires careful consideration of each location’s benefits and requirements. Curaçao, Anjouan, Costa Rica, Isle of Man, Kahnawake, Malta, and Gibraltar each offer unique advantages that cater to different business needs. By choosing the jurisdiction that aligns best with your business goals, you can ensure a smoother path to launching and maintaining a successful online gambling operation. 

Why can a license be revoked?

Maintaining an online gambling license requires strict adherence to regulatory standards. Several factors can lead to the revocation of a license, jeopardizing the operation of an iGaming business. Here are five common reasons for license revocation:

1. Non-compliance with regulatory requirements

Failure to adhere to the regulatory standards set by the licensing jurisdiction is a primary reason for license revocation. This includes not meeting technical standards, failing audits, or neglecting to implement responsible gambling measures.

2. Financial irregularities

Engaging in financial misconduct, such as money laundering or failing to maintain sufficient funds to cover player winnings, can lead to license revocation. Regulators require operators to demonstrate financial stability and transparency at all times.

3. Fraudulent activities

Involvement in fraudulent activities, such as manipulating game outcomes or deceiving players, can result in the loss of a gambling license. Operators are expected to ensure fair play and transparency to maintain their license.

4. Failure to protect player data

Neglecting data protection responsibilities, leading to breaches of player information, can cause a license to be revoked. Regulators mandate stringent data protection measures to safeguard player information and privacy.

5. Violation of local laws

Operating in violation of local laws, including those beyond gambling regulations, can result in license revocation. This includes failing to pay required taxes, engaging in illegal marketing practices, or operating in prohibited regions.

Ensuring compliance with all regulatory requirements, maintaining financial integrity, and protecting player interests are crucial for retaining an online gaming license. Operators must be vigilant and proactive in adhering to the standards set by their licensing jurisdiction.

LicensingAid services for iGaming operators

Expert support can significantly simplify the process of obtaining a gambling license. LicensingAid is one of the companies that offers such services. So, how can LicensingAid’s team assist gambling operators?

• License acquisition;
• Company registration;
• Bank/merchant account opening;
• AML/KYC compliance;
• Consulting on trademarks and design;
• Legal advice.

Obtaining a gambling license is a critical step for launching a successful online gaming business. By understanding the benefits, requirements, and potential pitfalls, operators can navigate this complex process more effectively. Leveraging expert support from companies like LicensingAid can further streamline the process, ensuring compliance and enhancing credibility.