What country gives your crypto gaming establishment the best chance to run?

Some countries offer licenses that permit operations in multiple countries, while others have specific licenses and regulations. To take it to the extreme, some countries don’t even issue licenses, while others have many permits across various states within the same country.

So, which countries are the best for crypto gaming licenses?

It depends! In this article, we’ll take you through the different types of gaming licenses in various countries. Then, you’ll answer that question yourself.

But first:

What is a Crypto Gaming Licence, and Why Do You Need One?

There’s no such thing as an exclusive crypto gaming license, only a gaming license.

A gaming or gambling license is an authorization granted by a government authority or any other regulatory body to an individual or organization. This legal authorization permits them to operate gambling activities within a jurisdiction legally.

Sure, anyone can set up a casino — either run on cryptocurrencies or fiat— and have people participate. But, doing so without a gambling license would be illegal.

Nonetheless, some countries have stricter regulations than others. However, you need a gaming license to run legal and compliant gambling activities. It doesn’t matter if they’re based on fiat currencies or cryptocurrencies.

Aside from being on the right side of the law, crypto gaming operators might benefit from owning a gaming license in the following ways:

• Seamless collaboration with casino gaming software providers. As a result, such an operator can offer numerous third-party casino games that’ll attract a wider audience.
• A crypto gaming license confers credibility on the operator. This leads to excellent customer retention.
• Gaming licenses impose certain regulatory obligations on the operator that foster customer protection.
• Government authorities and regulators also offer guidance and support for licensed operators. This guidance helps them navigate the murky waters of online gaming.
• Regulatory support sometimes comes as tax incentives that foster financial viability.

Different Types of Gaming Licences

Now that you’ve decided on getting a crypto gaming license, the next question is what types of gaming licenses are available.

Gaming licenses can be broadly classified into two categories. They are:

Internal Gaming Licence

These gaming licenses permit an operator to offer their gambling services within the jurisdiction of a specific country. They are otherwise called country-specific gambling licenses. An operator needs to obtain an internal gaming license even if they have an international gaming license if the government regulations in that jurisdiction require it.

In some countries like the US, each state often has gaming regulations, which every operator must comply with. For instance, obtaining a gaming license in one US state doesn’t permit a gaming establishment to operate in another state with its own regulations.

As with international gaming licenses, internal gaming licenses may also offer different types of licenses to other operators depending on the activities of such an operator. The following are some internal gaming licenses:

The United States

US federal laws do not currently regulate crypto gambling specifically. However, FinCEN regulations classify any organization that performs Convertible Virtual Currency (CVC) money transmissions as a money transmitter and must be held under the Bank Secrecy Act.

In simple terms, the fact that crypto gaming outfits can convert crypto to fiat means they’re under the Bank Secrecy Act. So, crypto gaming outfits should follow the regulations stated under that act.

In addition, an operator needs to get the gaming license of the state they wish to operate in to legally run a crypto gaming establishment in the United States.

The United Kingdom

Obtaining a crypto gaming license in the UK is similar to the US. For one, there are no notable distinctions between crypto gambling, online gambling, or any other gambling. As such, an operator would have to get a license from the United Kingdom Gambling Commission (UKGC), like everyone else.

Japan: A Unique Case in Crypto Gaming 

Japan presents a peculiar scenario in the realm of crypto gaming. Although the Japan Casino Regulatory Commission, colloquially known as “The Commission,” oversees all gambling activities, including those based on skill or social aspects, there is a clear prohibition on all forms of casino gaming. As such, it is sometimes understood that enjoying gambling at a cryptocurrency casino is illegal. In fact, there are no laws in place targeting cryptocurrency casinos in the country. Therefore, the current situation is that it cannot be said to be completely illegal or legal (source: https://www.business2community.com/jp/gambling/crypto-casino).

Yet, despite these stringent regulations, many crypto gaming websites continue to provide services to enthusiastic Japanese players. This resilience could be attributed to the unregulated nature of virtual currencies and the global reach of online platforms. And, the platforms thriving in the country are not licenced by the Japanese authorities, but instead usually hold an international licence, like those we’ll discuss next.

International Gaming Licences

These gaming licenses allow operators to offer their gambling services in numerous countries. They are also called offshore gambling licenses.

International gaming regulatory bodies offer various gaming licenses depending on the company’s uniqueness. The following are some of the best countries for international gaming licenses:

Curaçao

Curaçao is a member state of the Netherlands Kingdom. The subsidiary state is one of many islands that were members of the Netherlands Antilles. Now, they are a separate constituent country of the Netherlands.

They offer one of the most cost- and time-effective gaming licenses. So, operators looking for a gaming license with the easiest entry barrier should consider them. You could get a gaming license in 4-8 weeks from Curaçao even without having your casino server on Curaçao soil. Notwithstanding, their gaming license is in alignment with national legislation. And you’ll need to back up your database to a local physical server regularly.

Curaçao offers the following types of gaming licenses:

Master Gaming Licence

A master gaming license issued by Curaçao empowers the holder to give other operators a sub-license (discussed below). The master license is valid for five years. It confers the responsibilities of supervising, licensing, and processing license applications from other applicants on the holder. A master gaming license holder must diligently perform these duties according to Curaçao regulations to retain their license.

Sub License

A Curaçao sub-license is ideal for a crypto gaming company. It is obtained from a master gaming license holder, as discussed earlier. A sub-license permits a holder to conduct gambling operations from Curaçao but not in Curaçao.

Both these gaming licenses will be obsolete by the end of 2023. This is because the country is making some regulatory adjustments to replace them with two new types of licenses, namely B2C and B2B licenses. The B2C license will be issued to online casinos and gaming operators who deal directly with customers. On the other hand, the B2B license will be given to establishments that wish to act as white-label platform providers, game providers, and payment solution providers.

Malta

Operators who want crypto gaming licenses that allow them to run legally in EU countries should strongly consider getting a license from the Malta Gaming Authority (MGA). Unlike Curaçao, the application procedures are quite knotty and drawn out. There are plenty of procedural and legal fees, such as a €2,300 application fee, an annual license fee of €8,500, etc.

The MGA offers the following types of gaming licenses:

Gaming Service License (B2C)

This license permits an operator to offer, provide, and operate a gaming service. The license also allows hosting gaming devices and gaming systems on premises for public participation.

Critical Gaming Supply Licence

On the other hand, a gaming company that isn’t concerned with offering gaming services directly to the public but is instead focused on supplying and managing the material elements of a game should obtain a critical gaming supply license.

This license further authorizes the holder to supply and manage such software products as standalone or part-of-a-system software to manage and control essential regulatory records.

Other countries offering international gaming licenses include:

• Isle of Man
• Kahnawake
• Montenegro
• Antigua and Barbuda