Online Casino Licensing 101

online casino licenses

In previous articles on Casinoz, we discussed distinguishing reputable online casinos from unfair or low-quality websites that can give you nothing but frustration and loss of money.

Below, we will continue examining the subject of licensing online casinos to help readers understand it and learn to determine the legality of online casinos.

Who Grants Online Casino Licenses?

The critical moment to clarify the legality of online casinos is the country's institution that issued a license. This applies not only to casinos but also bookmakers, poker rooms, lotteries, and other websites that are engaged in providing services in the field of gambling.

To ensure that the casino operates legally, you must check whether a reliable regulator issues the license.

That is, indeed, to ensure that such a country exists, it licenses this type of web server or real casinos.

Any institution must regularly report to the Government under which jurisdiction it operates. It can be at the local or state level. When players make real money deposits, they must be sure that the casino exists. Otherwise, they can not feel secure and rely on support if deceived or even provided inadequate service levels.

Gambling Licensing in Offshore Zones

In 2006, the United States government passed the Act on illegal Internet gambling (the famous UIGEA). Still, it does not mean all relevant to this document casinos owned by U.S. companies have stopped operating. They just moved their servers to an area not subject to state regulation (the so-called offshores). They continue to use it safely and provide services to all clients, including U.S. players, without formally breaking the law.

At the first acquaintance with casinos on the world wide web, you will notice that some names stand out from the competitors. Many of these large companies have received their licenses in the same regions:

  • Curacao,
  • The Dominican Republic,
  • Costa Rica,
  • Antigua, and others.

The reason is that these countries grant licenses for opening casinos in their tiny size, lack of resources, and, consequently, low economic development. They have to use every opportunity to fill the budget. The story of the Internet and online gambling has allowed them to gain income by licensing online casinos.

Thus, for a company to legally provide gambling services on the Internet, it must pay thousands of dollars for the license and regularly pay taxes to the state under which the jurisdiction it operates. That is, it provides a regular infusion into the state budget.

Online Gambling Regulators

Nowadays, more countries provide this option. Not long ago, Italy and Australia started issuing licenses for online casinos, and they have a strong reputation in the business world. However, most companies opening virtual casinos still prefer to receive a license in small jurisdictions or even lesser-known areas (e.g., American Indian reservations) with an independent status and own laws.

For example, the Kahnawake Gaming Commission has already issued several hundred licenses. It is a reservation for Native American and Canadian residents. This organization has worked since 1996, and the logo with its abbreviation KGC can be seen in more and more casinos.

It is because laws regulating casinos are more complex in more extensive and developed countries. Moreover, this industry often becomes the target of political games (especially in pre-election periods) and attacks on social and religious organizations. So, it is much easier to work under the jurisdiction of smaller countries needing additional revenue and close their eyes to the moral and ethical side of the issue and minor violations.

How to Check Online Gambling License

It is effortless to find the answer to this question. Any respected online casino that values its reputation places the logo of the regulator that issued them a license on its website. Usually, it is located in the footer. Moreover, the logo should have a link to the official website of the organization. There you will find out whether the license is valid at the moment.

If you can not find out who has licensed the casino, where its servers are located, and whether it is legal, better look for another casino. Hiding this information is pointless without good reasons, and if the casino does it, it's in trouble with the law.

Casinoz advises you to be careful about choosing an online casino. On our site, there is a section with descriptions of reliable casinos. Playing there, you can rely on the integrity, security of information, and a high level of service.

Frequently asked Questions

🧾 Does every reputable online casino hold a license?

Every fair and respectable internet casino must have at least one license issued by a famous gambling regulator. Casinoz does not recommend you play on websites without licenses. 

📃 Who grants licenses to online casinos?

The Malta Gaming Authority, UK Gambling Commission, Curacao eGaming, and some other gambling regulators are the most popular organizations in the industry. 

❓ How can I check a casino's license?

Reputable internet casinos provide links to the official websites of the gambling regulators that granted them licenses. There you can check whether the license is valid. 

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