An International Comparison of iGaming in Different Jurisdictions
The iGaming industry is a super profitable field for the online casino operators, game providers, and any other business entity associated with online gambling. But this industry also brings a lot of money to the countries that are effectively regulating the online gambling activities of its residents.
Because of the enormous incomes that the iGaming industry is providing the countries through taxation, many countries in the world have legalised online gambling and more and more countries are following in their steps.
There is no single piece of legislation that covers the legality of online gambling for the whole world. Instead, most countries have come up with their own laws to deal with the legal and regulatory issues. In this article, we will make an international comparison of the different jurisdictions for iGaming.
Kahnawake Gambling Commission
When online gambling was introduced to the world, Kahnawake (Quebec, Canada) was one of the first regions in the world to recognize the industry’s big potential. Subsequently, it became one of the first gambling jurisdictions in the world and it is the home to the Kahnawake Gaming Commission.
This gambling commission provides gaming licenses to online casinos, sportsbooks, poker rooms, and any other form of online gambling. The Kahnawake Gaming Commission has strict provisions that the applicants have to hold on to if they want to be granted a license to operate an online gambling platform.
There are four different types of licenses that are granted by the Kahnawake Gaming Commission:
· Interactive Gaming License (IGC)
· Client Provider Authorization (CPA)
· Secondary Client Provider Authorization (Secondary CPA)
· Key Person License (KPL)
To apply for a gaming license at the Kahnawake Gaming Commission, the applicant has to pay an initial fee of $25,000 to the Commission for a Client Provider Authorization license. The fee for each Key Person License is set at $5,000 and both of these fees are refundable if the Gaming Commission rejects the license application.
Alderney Gambling Control Commission
The Alderney Gambling Control Commission is a respected online gambling license provider that was established in May 2000. This gaming commission follows the highest international standards and focuses on total transparency during its licensing operations.
AGCC grants two types of licenses to its applicants. Its first license is the Category 1 license, which is reserved for B2C operations, such as online gambling sites. The second one is the Category 2 license, which is reserved for the B2B operations, such as game providers.
This gaming commission took a big step in its operation when it entered a collaboration agreement with the Nevada Gaming Control Board in 2011. This was a major development for the AGCC towards international cooperation in the iGaming industry.
For an applicant to be granted a gaming license from the AGCC, they must first make an initial deposit of $12,500 and fill out an application form.
Isle of Man
The Gambling Supervision Commission from the Isle of Man provides 4 main kinds of gaming licenses which are meant for online gaming, land-based casinos, controlled gaming machines, and betting offices.
This gambling commission will first analyze the intentions and business plan of the applicant and will also thoroughly analyze the online casino's software. All of this is necessary for the commission to find out the criminal past of the applicant and the fairness and reliability of their online gambling platform.
The applicant is required to open a bank account within the Isle of Man and to make sure that the company is deploying 1 operations manager and 2 directors on the Isle of Man. This commission will also run random auditing processes to ensure that the license holder is adhering to all the rules and regulations.
There is a one-time administration fee of $5,000 charged during the initial application while the annual license fee is set at $35,000. This commission will deduct 1.5% in taxes if the company's gross gaming yield is below $20 million and 0.5% tax if the gaming yield is between $20 and $40 million.
Some of the most reputable online gambling operators that hold a valid license from the Isle of Man are Paddy Power Holdings Ltd, Boylesports Ltd, Knockout Gaming, and Rational Entertainment Enterprises.
Curacao e-Gaming Licensing Authority
The Curacao e-Gaming Licensing Authority is one of the oldest regulating authorities in the world, having been established way back in 1996. Unlike other iGaming jurisdictions, the CGLA grants only one common license, which covers all kinds of games, whether they are sports bets, games of chance, or games of skill.
Apart from licensing online gambling operators, this authority also provides a wide range of services such as IT infrastructure, hosting online gaming events, and regulating the issued gaming licenses. All of these services are making CGLA very attractive for potential operators.
In order to apply for a gaming license in Curacao, the applicant must submit an application, which includes submitting proof of beneficial ownership of the company. After the license has been approved, the operator will be charged a sum that is between $1,000 and $7,000 per month.
The net corporate income tax rate for the license holders by the CGLA is only 2%, while there isn’t a tax on gross bets and sales.
Malta
Malta was the first jurisdiction within the European Union to regulate online gambling on its territory. Today, Malta is one of the most popular and biggest jurisdictions for online gambling sites that are looking for gaming licenses.
One of the biggest advantages of holding a gaming license from Malta is that it appears on the "white list" that is issued by the UKBC. This allows all online gambling operators with a Matese Gaming License to offer their services in the UK.
There are 4 types of licenses that the operators can seek in Malta:
· Class 1: covers online lotteries, casino games, and skill games
· Class 2: covers spread betting, fixed odds betting, and pool betting
· Class 3: covers P2P gaming and betting exchanges
· Class 4: is meant for software vendors
For an operator to claim a valid gaming license from Malta, they must pay $2,785 as an application fee, while the annual fee to maintain a gaming license from Malta is $10,615. To renew a gaming license the operator must provide the authority with $1,870 per year.
Gibraltar Regulatory Authority
Gibraltar has one of the most-known gambling jurisdictions in the iGaming industry, which handles all kinds of licenses for online gaming. The Gibraltar Regulatory Authority is a very strict regulatory body that doesn't grant gaming licenses easily.
Every applicant that wants a gaming license from the Gibraltar Regulatory Authority must have good financial resources and a realistic business plan for their online gambling platform. This authority gives licenses to companies that are conducting their operations in Gibraltar.
There are 7 types of licenses that the Gibraltar Regulatory Authority are issuing:
· A bookmaker’s License
· A betting intermediary’s license
· A gaming operator’s license
· A gaming machine license
· A lottery promoter’s license
· A pools promoter’s license
· A remote gambling license
The licenses that are issued in Gibraltar are annually renewable after the operator pays a one-time fee of $2,500. Gaming tax in Gibraltar is set at 1% of the total turnover for betting sites, with a min tax payable of $106,100 per annum.
Honourable Mentions
Of course, we cannot cover all regulators globally, but there are a few additional ones that are worthy of mention. The UK Gambling Commission is referred to as the most respected and most effective regulator in the world. Then, we have Kansspelautoriteit (Dutch regulator) and the Swedish Gambling Authority (Spelinspektionen). In the US, each state where online gambling is legalized has its own jurisdiction.