At the very beginning of the transition of gambling establishments to online platforms, not a single online casino owner thought about the license. It was that period that a rare player could show off a large or a regular win. That was because the operators did not hesitate to adjust the slots, so the slot machines did not offer a high percentage of return.
In the future, most countries in the world agreed on the need to license gambling activities. So what is a license? It is a particular document in a gambling house, confirming that the operator successfully passed many inspections by the gambling commissions. However, the issue of a license is not a final action, and regulatory authorities conduct periodic inspections throughout the casino's life. Players should know and remember that having a license is not a major factor in casino integrity. Each user also needs to pay attention to other essential characteristics.
At the same time, licensed casinos still provide some safety cushion for players, since during the next inspection, authorities can revoke the license for possible violations. Needless to say those gambling houses, which do not have a permit, are inherently not controlled by anyone? So, that means only one thing - they can do whatever they want, and perhaps including deceives their players. Obtaining permission to operate in the gambling field has several advantages, not only for the incoming player but also for the business owner:
- Quiet work in the legal field;
- Increase of credibility among players and partners;
- The opportunity to provide their visitors with original software;
- Extensive coverage of players, since the license grants the right to work in many countries in the world;
- Possibility to connect various payment systems.
📜 Choosing a Casino with a License
Licenses in gambling activities are divided into two types:
- Local, i.e., allowing online casinos to operate in the jurisdiction of the country of their location;
- International - giving the right to work in most countries in the world.
Local licenses let the owner of a gambling institution work in the jurisdiction of one country. In other words, those who have received a permit under the licensing laws of Poland, a gambling establishment have the right to work only on its territory. Obtaining a local license is most often characteristic of land-based casinos and those who work for players in a country where it is necessary to get it. Gambling commissions, ministries, and departments issue this type of license. From the legal point of view, a virtual gambling institution is an organization, which means it pays taxes and is accountable to various regulatory bodies.
International licenses legalize the work of online gambling houses in many countries in the world. Most often, casino owners decide to obtain licenses in the offshore zones and European countries. First of all, because the process of obtaining them is more profitable for financial reasons, and secondly, there are countries where gambling is prohibited, so getting an international document that raises the prestige of a gambling house is a proper solution. The list of such licensing countries is quite extensive, but the licenses from the gaming commissions of Curacao, Costa Rica, Antigua and Barbuda have high authority. Of the European countries, issuing permits, it is worth mentioning the Isle of Man, Gibraltar, and Malta.
Besides, every year more and more owners of gambling establishments prefer to obtain a license in small jurisdictions that have independent status. The reason for this is the political motives of large licensors, the simple mechanism to operate with them, which is accompanied by the closing of eyes to some non-critical gaps in the operator's work. The jurisdiction described above is Kahnawake (the Gaming Commission is in the province of Canada).
Any license issued can tell the players a lot about the establishment where they decided to stay longer. That is because each of the licenses has both advantages and disadvantages.
📃 Curacao Gambling License
Many thousands of gambling houses operate based on a license obtained under the laws of Curacao. That is because it has a lot of advantages over other licensees:
- Quite low cost to obtain it;
- Issued for a large number of services (lotteries, sports betting, casinos and many others);
- Low tax rates;
- Prompt issuing of permits;
- Well-developed gambling system;
- The authority of the Gaming Commission all around the world;
- High requirements for resolving complaints and disputes with players.
📃 Gibraltar License
No less popular among those who want to create their own gambling business. Casino owners who initially wish to operate honestly decide to get a license under the laws of Gibraltar for the following reasons:
- Gibraltar is in the offshore zone, which shows the absence of complex tax regulation;
- The legislation on gambling is quite strict, which is a significant advantage for players because those who have received this license are required to comply with the strict requirements imposed on them;
- Small taxes for developing companies;
- For non-resident companies there are similar benefits as for national ones;
- Full data safety for its licensees.
📃 Kahnawake License
The Kahnawake license has been available since 1996 but has become increasingly popular during recent years, providing the following benefits:
- No taxes;
- No strict rules;
- Low cost of getting a license;
- In case of refusing to obtain a permit, the application cost is returned;
- Small initial capital for starting a business.
📃 Malta License
Malta is the European state, which was the first in the European Union to issue international licenses. For those who decide to obtain such a permit, the following opportunities are available:
- Authority and prestige. For experienced players, there is an unspoken rule that a Malta license equals an impeccable reputation;
- A small fee for getting a license;
- The Gaming Authority provides additional guarantees;
- Low tax rates.
📃 License Isle of Man
Although The Isle of Man is not a part of the UK and the European Union, it is still accountable to the United Kingdom, based on some legislative documents. Since the mid-20th century, an island that has not been popular among tourists and other profitable activities has decided to lower the tax rate to attract business people. After this, the affairs of the island went uphill, and today it can rightly be called an island for business companies. It is worth mentioning benefits namely for gambling establishments, they are following:
- Low tax rates;
- The opportunity to obtain a sublicense;
- Ability to submit a single package of documents for various gambling services.
📑 How to Check a Licensed Casino, Differences from an Unlicensed Institution
Each legal online casino carefully monitors its reputation, which has been developing over the years. That happens because today, the gambling area is trendy, and every gambling house is fighting for its regular customers by all means.
However, it is worth mentioning that licensed establishments cannot always be honest with their players. Still, many features can reduce the risk of running into an unfair and greedy operator. Licensed casinos are characterized by the following features:
- Secure transactions;
- Reliable storage of all personal data for players;
- Initiatives against money-laundering and fraud;
- All slot machines operate with a random number generator;
- Licensed soft;
The last point of the list is no less important than the availability of a license at an online casino since only in this case, honesty and reliability are closely linked and mutually complemented. It is as follows - licensed slot machines from a software provider ensure fairness for players, and a license of a virtual gambling house guarantees financial, informational and technological security. To choose a gambling establishment that is most honest to its players, one should pay attention to the following elements:
- Player Reviews. There are many forums, specific sites that let people publish their opinions regarding a particular casino, so before you make a deposit, you should become familiar with them in advance;
- Casino Bonuses. Almost always, an unfair operator focuses on attracting new players with enormous bonuses that promise to be enriched by several thousand dollars or a large prize. As a result, the visitors, most likely, will not see either their money or an expensive bonus;
- Support Service. The higher the operator values their reputation, the more support specialists get into the details of the player's problems or questions and quickly help to solve them.
Licensed casinos necessarily publish on their resources an active link to the official website of the issuing authority, where you can check the activity for the particular gambling institution. It is worth remembering that fraudulent sites also often attach a badge of license authority. Unlike a real website, nothing will happen after clicking on an image on such an unfair resource, because the icon, in this case, is there to confuse players.
🎰 How to Determine the Licensed Slot Machines
Slot machines in a gambling house that has a permit to operate in the gambling area are original slots tested by independent laboratories. In such cases, the random number generators installed in the slots are checked regularly. They are responsible for the random landing of winning combinations. Unauthorized operators will not be able to adjust licensed slots for the following reason:
- Software producers ensure that operators do not interfere in the operation of slots;
- Licensed slot machines work on the servers from their manufacturers.
Before starting the slot game, each player has the opportunity to check it for originality, since this process is quite simple. So, all licensed slots are located on specialized servers of software manufacturers, and players only connect to them. Each producer has a service address. In fact, a gambling establishment is a platform for hosting games of fortune and chance.
To determine the originality, you need to right-click and open the player settings tab. It will show the server address where the game is located. All slot machines of the same manufacturer will have a shared address. If the slots of different manufacturers are from one server, then one can conclude that they are fake.
In scripted software (non-licensed), one can adjust RTP at any time. The operators do this themselves in the administration panel of the resource. It looks like this: the operator decided to get rich at the expense of the players. He buys inexpensive game content from various companies specializing in the creation of fake software, places it in his casino, and adjusts RTP when he needs it. It is unlikely that players will be lucky in scripted slot machines to win anything.
🎰 Casino Bonuses: To Take or Not To Take - That Is the Question
Every gambling institution offers its players to take advantage of many different rewards, including deposit bonuses and no deposit bonuses. In general, every gambling establishment operating for online players repeats others. Still, the difference between licensed and illegal casinos is that a casino, which has the right to carry out gambling activities, is more likely to pay money to the player who won on slot machines.
The very first bonus for a user who has registered on a gambling resource is a casino welcome bonus. Before deciding to receive it, a player should carefully learn all the conditions that a gambling house sets for its users. These rules most often include making a deposit of a minimum amount, spinning specific slots with a wager, a maximum bonus wagering period, and a minimum amount of spins.
Furthermore, gambling institutions, trying to attract the regular players, give out players various deposit bonuses either automatically or at the request. Such rewards can be for a specific time, for the particular days of the week, bonuses for playing tournaments, and more.
A gambling house can encourage its players not only by increasing the user's balance with a certain amount but also with free spins.
In addition to bonuses, given during replenishing an account, there are also no deposit bonuses. That is perhaps the lightest bonus because the player doesn't need to invest money, but at the same time, there is a chance to get a win. However, there's always free cheese in a mousetrap; therefore, the conditions for wagering such a gift are often more severe than when receiving bonuses for an account top-up.
When deciding whether to receive bonuses or not, it is advisable to study the reviews of other players carefully online and become familiar with the rating of a gambling establishment on specialized websites.
A license in a gambling house is not a 100% guarantee of its honesty. Still, it makes players hope that the operator will be afraid of losing such an essential permitting document as well as his reputation.
With opening a new gambling house, the owners decide what their priority is - someone chooses a relatively cheap license, someone prefers a permit, which does not have many requirements for them. Therefore, players always need to be careful and save their time, nerves, and money.