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31 Aug 2023For an online casino or a sportsbook operator to be considered trustworthy and reliable, it must get licensed by a reputable gambling authority. Casino licenses have been designed to enable online casinos to operate with a legal framework and under the strict regulation of a regulatory body of the jurisdictions they are registered at.
While various regulations and protocols are cumbersome for some online casinos, there are many advantages to being legal that definitely outweigh the legal limitations and costs of a valid gambling license.
Keep on reading our comprehensive guide to casino licenses and the importance of why you should always sign up for a licensed and regulated online gambling operator.
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What is a Casino License?
A casino license is a legal document that enables a casino or sportsbook operator to offer its services in a specific territory. Similar to land-based casinos, online casinos must also be regulated in order to operate.
A gambling license enables the operators to offer various games, including online slots, RNG casino games, live casino games and sports betting in a legal manner in the territories the casino license covers.
Acquiring any gambling licenses is no plain sailing regardless of the jurisdiction. Licensing costs will vary from one market to another and ties down casinos to a wide range of regulations, including safety measures, responsible gambling as well as the processing of player data.
The relevant gambling authorities will closely monitor their licensees and ensure that they are working in a manner that safeguards consumers’ interests.
In short, the main purpose of the licensing system and casino licenses is to:
- Halt in its tracks any connections between criminal activity and gambling
- Make sure that all the games on offer are fair
- Prevent any vulnerable persons or children from being exploited
List of License Jurisdictions
Requirements for Obtaining a Gambling License
The requirements for obtaining casino licenses will vary from one gambling jurisdiction to another. What is required in one jurisdiction may differ in a different one.
- A number of documents are required to kickstart the process. This includes a copy of the beneficiary’s passport, address of residence and birth certificate, a certificate of good conduct, a letter of recommendation from the bank, proof of ownership of the casino site, various contracts from software game developers, a Curriculum Vitae as well as other relevant documents.
- All games provided must be distinguished by type. A preliminary assessment will be conducted based on the game types.
- All games proposed must be first and second types. There is a minimum authorised capital of £100,000.
- All type 1 games use random number generators and thus, additional RNG certification is required from eCOGRA.
- If an operator is running eSports or Fantasy Sports, then there should be a minimum authorised capital of £40,000.
How do Online Gambling Regulators Protect Players?
Compliance with government regulations is important for any business, especially online gambling operators with valid casino licenses. Since there are some risks involved with online gambling, online casinos must abide by strict rules and regulations as stipulated by the relevant gambling authority. This includes:
- Auditing and Software Verification: A responsible and licensed casino operator will get its games checked on a regular basis by an independent auditor. The random number generators of the games on offer are checked to ensure that they are working in a fair manner producing random results that cannot be tampered with. They also regularly update their cybersecurity software to safeguard all players.
- Abusive Terms: While many terms and conditions of casino bonuses or money deposited have been designed to give the casino the upper hand, some casinos take it too far by offering impossible or unusual terms that give players a nil chance of ever meeting them. A regulated casino will provide a fair gambling session with all the terms outlined near the offer.
- Casino’s Financial Information: Casinos will use the information available on their players to monitor their spending. If they see that some players are making too many deposits erratically, they reach out to the players to see if they need assistance when it comes to problem gambling.
- Licensed Casinos which are not compliant: Players can report licensed casinos that are not compliant to the relevant gambling authorities. Blacklisting, fines as well as the revoking of a gambling licence are all possible scenarios.
Why is it Recommended to Play at a Licensed Casino?
Just like you would not leave your credit card details anywhere where they can be stolen, neither is signing up for an account at a rogue casino. Signing up for an account at an unlicensed online gambling operator can have repercussions that can lead to unnecessary costs and hassle.
Here are some of the benefits of playing at a licensed casino:
- Safe gambling session: A licensed online casino will take all the necessary measures and precautions to keep their players safe. That includes the adoption of SSL encryption technology as well as firewalls to keep cybercriminals at bay.
- Fair gambling session: All the games are regularly checked and audited by independent third parties to ensure that all games run in a fair manner and are not rigged.
- Terms and conditions: The fine print of casino bonuses has been designed to give the casino an upper hand. While terms and conditions have been created to curb off any bonus abuse by players, rogue casinos go in a different direction by having high wagering requirements and high withdrawal limits. Essentially, they rely on players not reading or comprehending the fine print making it impossible for them to have a fair session.
- Disputes: Regulated casinos will go out of their way to solve disputes and to keep their players happy.
- Responsible gambling: All licensed online gambling operators provide all the right tools to protect players from gambling addiction. This includes deposit and wager limits, self-exclusive, self-assessment tests and reality checks. Furthermore, the casino’s team and customer support are trained to recognise signs of problem behaviour.
How to Check if a Casino is Regulated and Licensed
One of the easiest ways to check if an online casino has any valid casino licenses or not is by simply scrolling all the way down to the footer section. Here, you should be able to see all essential information, including signs of a valid gambling licence, the licence type and number as well as the gambling licence issuer and regulations.
You can easily verify if the licence number is legit by looking it up in the regulator’s public database. You can also check if the casino has been blacklisted via this database.
Other Certifications and Testing Programs
To achieve a high level of fairness for players, some gambling products, including RNG card and table games as well as online slots must be tested by an approved test house before they are released to the general public.
All test houses must have full accreditation in order to operate and to ensure that the games on offer are fair for consumers.
- eCOGRA: eCOGRA is a leading independent auditor that was launched in 2003. Based in the United Kingdom, this leading approved testing agency carries out inspections, and tests as well as issues a certification of gambling systems and software.
- iTech Labs: iTech Labs is an accredited testing laboratory for online gambling all over the world. It has been testing and certifying all types of casino games in different online gambling platforms for more than 10 years.
- TST: Technical Systems Testing is an independent auditor with a history that stretches back to 1993. The company was eventually acquired by Gaming Laboratories International to specialise in auditing, testing, regulation and consulting.
- GLI: Gaming Laboratories International is one of the largest testers and auditors of online gambling software globally. It currently works in more than 475 jurisdictions.
- Gaming Associates: Gaming Associates’ journey kicked off in the 1990s and considers itself a leading pioneer of regulated internet gaming by providing various services, including testing, inspection and auditing.
- NMI: NMI is a Dutch independent specialist in certification, testing and training in the field of metrology.
- BMM Testlabs: BMM Testlabs is a well-established private independent gaming testing laboratory that has been operating in the gaming industry for more than 4 decades. It currently has 15 offices in 14 countries and is licensed and recognised in more than 489 gambling jurisdictions
- SQS: SQS is a specialist in software quality. It has been providing quality assurance since being established in 1982 in Germany. The company offers various services to the online gambling industry as well as working closely with software game developers and operators.
