Article Highlights:
- The license costs depend on jurisdiction classification: Tier 1, Tier 2, and Tier 3.
- The license type also influences the total price.
- RNG certification may influence the total license cost.
- Renewing the permit in advance is a good idea for optimizing the price.
- Anjouan offers one of the cheapest online gambling licenses (0% tax rate and no VAT for online companies).
- The Gibraltar gaming license is one of the most expensive worldwide.
How Much Does a Gambling License Cost?
The first thing you should know is that the cost of a gambling license depends on the permit tiers. This classification is based on the jurisdiction’s credibility and regulatory terms. There are three tiers.
Tier 1unites jurisdictions with high compliance standards, strict regulations, and a solid global reputation. For instance, the UK, Gibraltar, Malta, and Germany are in this category.
Tier 2presents jurisdictions with moderate regulations. For example, jurisdictions like Alderney, Isle of Man, and Curaçao belong to Tier 2.
Tier 3means jurisdictions with less stringent regulations. For instance, regulators like Malawi, Anjouan, and Vanuatu belong to this category. This might be your go-to choice if you are a newcomer since the gaming license cost is more lucrative in these jurisdictions.
Tier 1
| Jurisdictions | Price | Tax Rates |
|---|---|---|
| Gibraltar | Approximately $126,000 | From 10% to 35% on corporate earnings |
| Malta, UK, Germany | From $25,000 to $60,000 | From 5% to 21% of total gaming earnings |
| Sweden | From $21,000 to $100,000 (depending on the license type) | From 10% to 35% on corporate earnings |
Tier 2
| Jurisdictions | Price | Tax Rates |
|---|---|---|
| Isle of Man | $45,000 | May vary |
| Alderney | From $17,500 to $50,000 | May vary |
| Curaçao | Approximately $61,700 | 2% on net earnings |
| Kahnawake | $40,000 | No gaming taxes |
Tier 3
| Jurisdictions | Price | Tax Rates |
|---|---|---|
| Malawi, Vanuatu | $15,000 to $20,000 | 0 or low gaming taxes |
| Anjouan | From $17,000 to $20,000 | Zero corporate taxes |
Factors Affecting Gambling License Cost
Here’s a list of the main factors that influence the final gambling license cost:
- Jurisdiction. As we mentioned above, countries and regions have different regulatory requirements, licensing prices, and taxing structures.
- License type. The gambling license type depends on the company’s size and provided services (sports betting, table games, live dealer shows, bingo, lotteries, etc.). You can receive a full gambling permit, a sublicense, or a white-label option. Moreover, you may choose between B2B and B2C licenses. The first allows you to provide gambling services for casinos and other companies. The second license is suitable for providing casino games for clients.
- Application process. The procedure for a license varies based on the regulator’s rules. Each jurisdiction also has its fees and registration costs.
Keep in mind that you also should pay renewal fees for your license. This sum varies in different regions as well.
Hidden & Additional Costs
The initial license fee is only the beginning since some supplemental and hidden aspects may influence the total online gambling license cost. For instance:
Moreover, do not forget about regular staff training, technical website maintenance, and design improvement. All these factors also affect the final gambling license cost.
Cost Optimization Strategies
You may use some optimization strategies to receive a more lucrative gambling license price. Initially, pick the proper jurisdiction with lower fees and a strong reputation. Also, pay attention to such opportunities:
- Sublicensing. If possible, you can apply for the sublicense under the license holder. Thus, you may reduce the setup price and application fee.
- License renewal in advance. You should plan the renewal procedure in time to avoid penalties or supplemental costs.
- Partnerships and common resources. You can create strategic partnerships to share licensing, technical compliance, and work infrastructure prices as a business owner.
Keep in mind that you may hire legal experts to guarantee the finest casino license cost. Although professionals’ services cost money, their vast experience will ensure a faster and no-stressful licensing process. Moreover, they will give you essential insights into legal nuances to save you from overpaying.
Renewal Cost
Renewal license prices vary in jurisdictions based on permit types and other factors. We have created a table with gambling license renewal costs in different countries and regions.
| Regulator | Renewal Price |
|---|---|
| Malta | $5,000 |
| UK, Germany | From $30,000 to $50,000 |
| Sweden | $21,000+ |
| Gibraltar | Approximately $110,000 |
| Isle of Man, Alderney | From $17,5000 to 35,000 |
| Curaçao | Approximately $61,700 |
| Kahnawake | $21,000 |
| Malawi, Vanuatu | $10,000 |
| Anjouan | $10,000 |
Final Thoughts
So, we have analyzed how much a gambling license costs in Tier 1, Tier 2, and Tier 3 jurisdictions. Since jurisdictions that belong to Tier 1 have solid compliance standards, strict regulations, and a positive global reputation, obtaining a gambling permit there costs more. This category includes Gibraltar, Malta, the UK, Germany, and other regulators. Malawi, Vanuatu, and Anjouan regulators offer the cheapest prices as they belong to Tier 3.
The total gambling license cost depends on the jurisdiction, chosen license type, and possible regulatory and compliance spending. You will need to pay for regular technical audits, anti-money laundering policies, responsible gaming measures, and RNG certifications.
If you would like to reduce the price of the license, we may give you some recommendations. First, pick a suitable jurisdiction and required license type. If you aim for a cheaper decision than obtaining a separate license, opt for sublicensing or white-label solutions. Moreover, renew your license on time and avoid potential fines. Consult with our experts to learn more essential nuances that help you obtain a license at a more affordable price.
Besides traditional options, newer jurisdictions like Tobique are gaining popularity for their balance of cost and regulatory efficiency.
FAQ
Yes, you may decrease the gambling license cost using wise optimization strategies.
In most jurisdictions, you need to pay license renewal fees once a year.
Yes, buying a white-label solution is cheaper than receiving your betting or gaming license.
