7 tips for choosing a country for your gambling business
Today, more countries compete to offer the best options to start a company.
AppLaw team prepared a guide to help you select a perfect jurisdiction for your gambling business.
*Reading time: ~ 3 minutes
Type of gambling
First, you need to choose which business you plan to run.
You can select one or a few directions, but you need to be aware that some jurisdictions require to receive a license for each gambling activity.
The most common picks are casino, slots, roulette, poker, bingo, betting and bookmaking (including sports, horse race, and fantasy betting), and lotteries.
A country may require the founder of a gambling company to obtain a temporary residence permit, a permanent residence permit, become a citizen, or hire local directors. So you will have to consider the additional expenses needed to fulfill this obligation.
Some jurisdictions allow non-residents to run a gambling business but pose certain limits.
Offline vs. online
If you plan to manage an online-only gambling business, the license cost and general expenses will be lower.
The conditions may include locating the servers in the territory of the country, as well as using local certified software and service providers.
Offline gaming activity is more complex, while not every country authorizes you to open a land-based casino.
When you choose between the jurisdictions where such offline gambling is allowed, you should look for:
required area size;
real estate prices;
requirements for top management and employees;
general cost of this whole procedure.
You will have to assess the amount of money needed to open a gambling business.
These are the most common things you will need to collect finance for:
obtaining a license (fixed price);
yearly license prolongation price (can be fixed or depend on your annual income);
additional administrative fees for issuing a license;
annual investments in your business;
premises lease price (where it is required).
Opening bank account
The bank will consider the jurisdiction you choose for your gaming company while proceeding with opening a bank account.
Major financial institutions may require additional checks and proofs of financial reputation depending on the country of your business and your residency status.
In certain cases, it is crucial to open a bank account in the same state.
Obtaining a license
To receive permission to run a gambling business, you need to prepare a set of documents.
It can vary depending on the reputability of the country, but you should look for the following documents:
business plan with a precise depiction of planned business development;
information about you and your partners' reputation;
detailed description of your gaming activities;
RNG certificate and other software certificates;
proof of funds source;
information about your financial history;
AML and other compliance documents;
information about your previous and current business activity;
proof of residency.
In some countries, it will be enough for you to prepare one package of documents to obtain licenses for all or most gambling. However, in other jurisdictions, you will have to submit separate sets of documents for different types of activities.
Time to start
It can take between a few weeks or months to a few years to start your gambling business.
It depends on the type of your gambling activities, requirements and time for receiving a license, the time needed to allocate money, draft a business plan build a land-based casino, hire personnel, provide for certification of your software, etc.
These are 7 things you need to consider while choosing a jurisdiction to launch your gaming business.
Our AppLaw team has experience in obtaining gambling licenses and supporting the start of gaming companies in over 20 countries.
Please contact us if you need a consultation or want to assess different options for running a gambling business.