When Do You Need A Gambling License – With Examples
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Do I Need a Gaming License for a Casino?

When planning to run an online gambling business, you should receive a special license as quickly as possible. Since the gambling industry is strictly regulated worldwide, each company must work according to the legal terms in the region. Nonetheless, not all business owners realize why they need a gambling license and how it is essential for their activity. Our article explains why a gambling license is a crucial legal leverage for any gaming business. Keep reading to learn more.

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Article Highlights:

  • A gambling license is essential for legal operation, player protection, and business credibility.
  • The Kahnawake Gaming Commission, Malta Gaming Authority, Curaçao Gambling Control Board, and Isle of Man Gambling Supervision Commission are the most popular regulators.
  • A gambling license is required for providing any kind of gambling entertainment, like sports betting, slots, table games, bingo, lotteries, poker rooms, etc.

What Is a Gaming License for a Casino?

In legal terms, a gaming license for a casino is an official permit granted by a particular regulator that enables companies to provide legal gambling activities within allowed regions. 

This document is a legal framework guaranteeing that the online casino or betting website complies with local and global gambling laws. Gambling websites with licenses work legally, attracting more players’ trust thanks to regulatory oversight. Additionally, a gambling license symbolizes that your company protects players and adheres to fair play standards.

When Do You Need a Gambling License?

You need a gambling license if you plan to provide real-money gambling activities according to regulatory frameworks. Here is a list of the main examples of activities that require obtaining a special permit for gambling services:

  • Sportsbooks and online casinos.

    Each online gambling platform providing casino games and sports wagering should have a license. Suppose you create a bookmaker service for European bettors. In this case, you should receive a permit from the other European regulators or even in particular countries (it depends on the local legislation).

  • Bingo and lottery operators.

    You also need a gambling license for bingo, raffles, and lotteries with real-money winnings. The license should be issued by the relevant regulator.

  • Betting shops and land-based casinos.

    This category includes physical gambling venues, betting shops, and poker rooms. For example, you may open a new land-based casino with poker rooms in Las Vegas. In this case, you should obtain a Nevada gaming license.

  • Software providers and game developers.

    You also need a gaming license if your company provides white-label casino solutions or gambling software. In this case, you should receive a B2B permit. 

Still, there are some cases when there’s no need for a casino license. For instance, social casinos can operate without a gambling license if they don’t require real-money deposits and use virtual credits instead. Players neither lose nor win real money in this case. Here’s an example: mobile apps with slot games that don’t offer cash-out options.

The next case when you don’t need a license is when you provide skill-based games, and the result does not depend on the RNG. For instance, it can be online checkers and chess tournaments between players with prize pools. You also do not need a gambling license for a raffle without monetary purchases from the client side.

Gambling Activities That Require a License

We have collected all gambling activities that require licenses and those that don’t. You can familiarize yourself with this information below.

Gambling ActivityThe Need For a License
Online slots and table gamesMandatory
Live dealer showsMandatory
Bingo, kenoMandatory
Online pokerMandatory
Horse racingMandatory
Sports betting (traditional and esports)Mandatory
Lotteries with real-money winningsMandatory
Crypto gamblingMandatory
Social casino gamesNot necessary
Raffles without cash purchases from the clientsNot necessary
Board games with no RNG-based resultsNot necessary

Who Regulates Gambling?

Gambling activities are regulated by different authorities globally, depending on the jurisdiction. These authorities ensure gambling companies operate according to legal and fair standards, protect player data, and prevent illegal issues like money laundering. We have created a table with the most top-rated and solid regulators that may become your choice if you need a casino license.

The Regulator BodyFeatures
United Kingdom Gambling Commission (UKGC)Regulates all forms of gambling services in the UK, guaranteeing responsible gaming and fair play.
Isle of Man Gambling Supervision CommissionRegulates countless forms of gambling activities, including slots, sports betting, and lotteries. 
Kahnawake Gaming CommissionOffers licenses to poker rooms and online casinos registered on the Kahnawake territory.
Alderney Gambling Control Commission (AGCC) Regulates online gambling companies registered in Alderney.
Curaçao Gambling Control BoardProvides affordable gambling licenses for bookmakers and online casinos with global reach.
Malta Gaming Authority (MGA)Issues licenses that regulate online and land-based casinos in Malta and online gambling companies registered in the region.

The Risks of Not Having an Online Gaming License

Why is the need for a gambling license so essential? If you run a gambling business without a special permit, you will face legal, reputational, and financial risks. Remember that illegal work initially provokes legal action, heavy fines, and criminal consequences. The government may terminate your company and blacklist the platform. You also need a gambling license to avoid payment processing issues. Top-rated financial institutions and well-known banks do not cooperate with unlicensed gambling companies.

Additionally, access to your gambling platform will be restricted in many countries, decreasing your profit. In comparison, licensed companies can legally operate in numerous jurisdictions with no bans. The next reason why you should apply for a license is your company’s reputation. Players prefer to trust licensed gambling websites since they can be sure of fair gaming, proper data protection, and responsible gambling methods.

Many operators choose the Curaçao jurisdiction for its cost-effective approach and straightforward application process.

How Legal Pilot Can Help With Obtaining a Casino License

So, now you know that you need a gambling license to provide sports betting or online casino services compliance legal frames. Licensed gambling websites have no reason to worry about any legal penalties and shutdowns. Plus, they can cooperate with more payment providers and work on a wide range of markets.

Contact the Legal Pilot team to obtain a required license and avoid potential issues for your gambling company. Our specialists have over three years of experience in law and have assisted over 100 clients in the licensing procedure. 

We know all the legal details and have partners in various jurisdictions, improving your chances of getting an official permit as quickly as possible. Our specials help you collect the necessary documents and open a gambling company in a beneficial jurisdiction, saving you time and money. Contact us if you aim to receive a gambling license to start your business quickly.

FAQ

No, if you offer social casino games, you do not need a gambling license.

It depends on the terms of the regulations in both jurisdictions. Some authorities enable gambling companies to work with an available license while applying for another; others prohibit this.

You need to update or modify a gambling license if you plan to add new gambling services to your website. It might also be necessary for regulatory, technical, or ownership updates.

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Katerina S.

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Corporate Legal Expert Professional Profile A seasoned corporate lawyer at LegalPilot with extensive expertise in structuring, maintaining, and defe...
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