A guide to crypto-friendly gaming jurisdictions
Now everyone knows about cryptocurrency. Many people store their funds in Bitcoin, Ethereum, and other digital currencies. Now you can use them to pay in online stores, on websites, and other places. The gambling market has not missed this trend, and presently almost any real money online casino uses some cryptocurrencies for deposits and withdrawals.
Meantime, analysts predict that the gambling market could be worth more than $160 billion by 2026. New verticals such as esports, fantasy sports, and all kinds of mobile gaming are a big part of this. Simply put, more and more new casinos will appear. And many investors will seriously think about how to keep up with the development of technology. Thus, cryptocurrency casinos will become one of the most successful business solutions in the future.
How to open a cryptocurrency casino?
Before creating such an institution, you should prepare a detailed action plan. In particular, understand the main tasks and find out the features of each separate stage.
When building an offline casino, it is important to assess the location of the building: how easy it is to get to it, where visitors can park their cars, etc. When creating an online casino, different laws apply. You need to choose the jurisdiction that suits you best. An offshore jurisdiction is ideal due to the soft legislation.
Licensing is an important step. It is necessary in order to be able to work legally and open accounts. Remember that licensing a cryptocurrency casino is not much different from licensing a regular online casino. There are slight differences in the licensing application process in some jurisdictions, but usually, you just need to indicate the fact that you plan to accept payments in cryptocurrency.
At the business strategy step, you must be certain to consider all the multiple time frames as well as possible delays. Note, that sometimes licensing can take up to several months. Besides, you should keep in mind such factors as:
- Negotiation with third-party providers.
- Design and set up.
- Hiring staff.
- And, of course, force majeure.
Some offshore gambling jurisdictions do not require payment of taxes, while others do. You should also learn more about some reporting requirements (financial statements, annual returns, and others).
Each jurisdiction is different so make sure you are clear on what is expected before you settle.
Without advertising, no online business can be profitable. So make sure that your brand is promoted by the best experts. Also, don’t forget to prepare online cryptocurrency guides for your clients and train your support team.
At this stage, try to answer these questions:
- Which cryptocurrencies are you going to accept?
- Will you also accept fiat payments?
- Will you be using cryptocurrency wallet integration or third-party cryptocurrency payment processors?
If you are at a loss with the answer, then find a crypto specialist and consult with him.
What offshore jurisdictions do you recommend?
There are three main offshore jurisdictions. They are used by most of the online casinos on the internet.
- Curacao. Its license is cost-efficient, can be obtained in a relatively straightforward manner, and there is no tax payable on online gambling revenue. In addition to this, it’s a crypto-friendly nation and there are no additional licenses needed for cryptocurrency casinos.
- Kahnawake. Taxation is zero on revenue produced from the region and it offers a quick setup time and reduced licensing prices.
- Malta. The Malta government has just formed a framework for bitcoin. Prices here are high, compliance is hard, and conditions are harsh.