The process for obtaining a gambling license varies depending on the regulatory body you choose, especially when it comes to price. But even if you are interested in a cheap online gambling license, you should consider not only the cost of the document but also several other factors when choosing. In this guide, we will tell you what aspects may dictate the cost of your future license and which countries have the best offers from a financial perspective.
What affects the cost of a gaming license?
Each state that licenses gambling platforms has a different approach to setting this price. But in most cases, the cost of your license will depend on the following aspects:
- The steps you need to go through to register your company;
- One-time initial payment;
- Terms for issuing a gambling license;
- The taxation system in the selected country;
- Requirements to be met in order to renew the license.
Keep in mind that you should not focus on the financial factor only. Instead of basing their choice on what country is the cheap to get a gambling license, potential gambling operators should look for the best value for money.
The application process for a gambling license
A license from a reliable iGaming regulator plays an extremely important role in the reputation of an online platform. To apply for a gambling license in your preferred country, you need to prepare a documentation package that is mentioned on the regulatory organizations’ websites. It will include copies of documents confirming your identity, the current address of residence, and other data.
In addition, the selected gaming authority will check what software you plan to use for your gambling platform. Therefore, you can prepare a document that would show what game content you rely on, what software studios you cooperate with, and whether your games are random number generator (RNG) certified or not.
Also, bear in mind that you need to add information about responsible gambling, terms and conditions, and other relevant sections to your iGaming site.
Cost of the licenses worldwide
Curacao eGaming Authority
To obtain a license from this time-proven regulator, you will need to pay €21.5k. And your tax rate will be 2%.
UK Gambling Commission
The UK’s regulator issues licenses that cost £9 000. However, your corporate tax rate is 19% with a 21% gross gaming revenue (GGR).
Malta Gaming Authority
Malta Gaming Authority is also a popular regulator with an excellent reputation. Its gambling license costs €25 000. Whereas a 5% GGR is capped at €600 000, your corporate tax is 35% here.
Gibraltar gaming authority
The cost of a license from the Gibraltar regulator will depend on how many types of games you want to offer. A license for each game type will cost you £30 000, and your GGR will be 0.15%.
Romanian National Gambling Office
The Romanian government charges operators €50 000 per license and offers them a 16% corporate tax.
Greece gambling regulator
While many believe this is a promising market, the Hellenic Gambling Commission, which regulates gambling in Greece, will not offer you a cheap gambling license in 2022. Instead, you will have to pay £120 000 every year. Besides that, it is worth considering that local players have a 15-20% tax rate on all winnings. And the corporate tax is 24% in this country.
Aside from the financial conditions, you will also need to meet a number of other requirements, including the location of your headquarters. In most cases, regulators want license applicants to have headquarters in their country and hire locals for regular and key positions.
It is also worth mentioning that some regulators impose more specific requirements on companies, when it comes to application procedures. To begin this process, you will need to pay a pre-application fee that confirms your commitment. As a rule, this fee is around €500-1 000.
Gambling authorities also require future licensees to provide them with reasonable business plans that would confirm that applicants have long-term goals.
To summarize
Gambling operators often focus on getting a cheap online gambling license and stepping into the industry at the lowest possible cost. But what they tend to overlook is that countries take the iGaming market extremely seriously and apply hefty tax rates to it. Therefore, even a low license cost does not guarantee that you will spend less money in the long run.
Read more: Best iGaming Aggregators
