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If you are planning to start a sportsbook business, obtaining a sports betting license is crucial. A sports betting license is a legal document that allows you to run a sportsbook.
The sportsbook license is typically issued by the relevant regulatory authority in a given jurisdiction. It comes with strict regulations and compliance requirements to ensure fair and responsible gaming activities.
In this article, we’re going to take a close look at the top 5 offshore sports betting licenses. You’ll get information about what each license offers, along with their pros and cons. By the end of this read, you’ll have a better understanding which sports betting license could be the perfect fit for your online betting website.
If you are just starting out a business, we also recommend reading the article How to Start a Sportsbook Business. Now, let’s dive in and explore the top 5 sportsbook licenses!
MGA License
Malta gaming license is one of the most notable and stand-out choices in the iGaming world. The Malta Gaming Authority (MGA) offers B2C licenses that are categorized into four classes, suitable for various forms of gambling.
Since you are interested in a sports betting license, you need a type 2 authorization. Type 2 online gaming license allows you to launch games where the results are bound to the outcome of an event (a sports match).
Malta’s licensing regime is favorable for both startups and established operators. Startups benefit from waived compliance contributions for their first year, provided they meet specific criteria. For more established operators, MGA offers a prestigious and reliable option, especially for those with substantial financial backing.
The MGA’s licenses are highly regarded worldwide. In fact, they are one of the most legitimate and trustworthy in the iGaming industry. The MGA has stringent player protection measures and robust control mechanisms. It embraces high standards and strict anti-money laundering policies.
Full compliance with EU legislation makes the MGA license a symbol of reliability and safety in players’ eyes. Holding a Malta sports betting license opens doors to various jurisdictions, allowing you to expand your reach. Moreover, Malta’s inclusion on the UKGC’s “Whitelist” enables you to advertise in the UK market. Nonetheless, MGA doesn’t allow you to operate in countries blacklisted by the FATF.
The downside in the case of MGA is high cost – the fixed annual license fee is € 25 000. Also, it takes longer to get the MGA license. There are various procedures, background checks, financial and business assessments, fit and proper test, etc.
After submitting the application, you have to wait for 3-4 months to get a response. Then there is an application process which might last 1 month. After that, there will be a system and compliance review that will require 60 days. Overall, it’s quite time-consuming, but it brings credibility and safety and gives you multiple venues to improve your business.
Check out our detailed guide on How to get a Malta Gaming License (MGA). It will provide in-depth info about its application process and requirements.
Curacao Gaming License
The Curacao betting license is a highly efficient option that provides comprehensive coverage, meaning that with a single license, you can launch any type of game. It includes sports betting, esports, casino games, live casino, and so on.
The process of acquiring a Curacao gaming license is both quick and cost-effective. The whole process takes up just 6 weeks. This makes it an ideal choice for startups. Also, for those who are looking to enter the industry without a significant financial burden.
The application process is straightforward, with minimal bureaucracy and simple requirements. Besides, the ongoing maintenance costs are also affordable.
Another key advantage of the Curacao sports betting license is the favorable tax environment. You won’t be liable to pay tax on their revenue. But it’s true only if you are sourcing your income outside of Curacao. This zero-tax rate substantially benefits startups, helping them keep operational costs low.
Nonetheless, in the second part of 2023, curacao announced changes in the regulatory system. The regulatory body will directly issue B2B and B2C licenses instead of current Master Licenses and Sub-licenses. The change is expected to be fully enacted in Q1 or Q2 in 2024.
This transformative shift also involves stricter standards for sports betting operators. Curacao has already implemented strict counter-terrorism financing (CTF) and anti-money laundering measures to avert illegal financial actions.
The changes will also bring more sophisticated KYC checks. So, you must comply with these newly introduced standards. Read more about these changes in our article about the Curacao Gaming License.
Anjuan Gambling License
Well, we’ve mentioned that Curacao is becoming more advanced and rigorous about security. It might raise concerns for operators who want to get a permit with no strict license requirements and less time involved. And if you are searching for a lite version of Curacao, the Anjouan gaming license might be what you need. It’s becoming very popular for startups, offering a streamlined, cost-effective solution for those seeking a sports betting license.
The Anjouan gaming license has one of the shortest processing times. It often takes as little as 3-5 business days. This rapid turnaround is ideal for businesses with tight deadlines and relatively low budgets.
Anjouan offers a single license that covers all types of games of chance. It includes sports betting, casino games, poker, bingo, lotto, and more. This all-in-one approach eliminates the need for multiple licenses for different game types..
Another advantage of this sports betting license is the zero gaming tax on gross gaming revenue (GGR). This fiscal incentive is significantly lower than in many other jurisdictions. Anjouan also provides ongoing support and maintenance services for licensees, including assistance with compliance, marketing, and customer support.
Despite these advantages, the Anjouan gaming license is still less recognized. So, it does not hold much authority compared to other options discussed in this article.
If you are low on budget and want to launch your platform quickly, Anjuan is preferable. But remember that an authoritative license gives your players confidence and trust in your platform. Ultimately, the choice is yours, and you have to decide which one you prefer for your sportsbook business.
Isle of Man Gambling License
The Isle of Man can be another destination for obtaining a sports betting license. The Isle of Man offers four types of gambling licenses. These include a main OGRA license, sub-license, network services license, and B2B software supplier license.
At this point, you might ask which type of license you need. Since you are about to open an online sports betting platform, you need to choose between a main OGRA license, sub-license, or network services license. Let’s briefly discuss each of these options below.
Full License (Main OGRA License)
The Full License is the standard license for operators in the Isle of Man. It allows B2C operations, enabling you to register your players and store their data securely.
Moreover, if you hold this license, you have permission to provide a White Label Solution to other operators, offering them:
- iGaming platform
- Sports betting and casino content
- Sublicense (the cost of each sublicense is £ 5 000).
It is beneficial for large businesses with various offerings to bring to the table. You should get this type if you are planning to be an operator and a provider at the same time.
Sub-License
Sub-license might be the best option for new operators without prior experience. So, you can apply for it if you have a base of potential players yet are still in the early stages of developing your offerings.
A sub-license is like a stepping stone, coming at a more budget-friendly cost. It forges a symbiotic relationship between the sub-licensee and a full license holder through an exclusive agreement. In this arrangement, the sub-licensee receives the white label solution (a platform with sportsbook, casino gaming content, and license) from the full license holder and offers it to their players.
The sub-licensee remains under the umbrella of a full license holder. But, they can always apply for their own full license and become fully independent operators.
Network Services License
The Network Services License is the extension of a Full OGRA license but with some extras on top. With this license, you can accept registered players from other legal jurisdictions. Think of it this way: with a network license, you can migrate the player base from another platform (with a different license and without re-registration) into your platform.
Transferring players’ data under this license is straightforward. It bypasses the complex maze of anti-money laundering and KYC checks. So, you have a swift and hassle-free process. However, this ease doesn’t absolve you from your responsibilities. You still must ensure continued compliance.
Kahnawake betting license
The Kahnawake also offers a flexible and cost-efficient licensing process, providing numerous benefits for startups and established operators.
While not as swift as the jurisdiction of Anjuan, the Kahnawake still has a quick acquisition process. Typically, the initial application process takes around 2 to 3 weeks. Then you have to wait for an additional 8 to 10 weeks for approval. This makes it one of the fastest options available.
Moreover, the Kahnawake Gaming Commission is highly respected and known for its commitment to responsible and fair gaming practices. Holding their sports betting license implies a dedication to ethical business conduct.
The Commission takes user complaints seriously and ensures that you, as their licensee, adhere to regulations. On the other hand, this helps you to build trust with players and partners.
Due to low sports betting license costs, Kahnawake’s sportsbook license is particularly suitable for startups and smaller betting businesses. It has low application fees and zero gaming tax on gross revenue. This allows you to reinvest profits into growth and development.
Conclusion
Choosing the proper sports betting license is critical in establishing a successful business. Each license has its own advantages and considerations, and it’s essential to weigh these factors carefully before deciding.
At Upgaming, we understand the complexities of the sports betting industry. And we are committed to providing valuable insights and resources to help you navigate this competitive landscape.
Thus, if you have any questions or need further assistance in obtaining a sports betting license, please contact us. Our team of experts is here to support you on your journey to success.
