What Operators Look for When Choosing an Online Gaming License in 2025?

Starting an online gambling business always comes with the first and foremost decision on the licensing framework to opt for. This process requires founders to carefully evaluate multiple factors to make a well-informed choice.

First, taxation frameworks vary widely across jurisdictions, with some countries imposing only standard corporate income tax on businesses of all kinds and others adopting gambling-related taxes with separate accounting frameworks and rates.

Fortunately, however, select countries offer preferential tax treatment for gambling companies and other incentives that allow for making offshore income not subject to local tax. Those nations are preferable from a fiscal point of view, yet limited banking access that can come alongside should also be considered.

Depending on the jurisdiction, gaming vertical, and target markets, certain licensees may also find it challenging to obtain banking partners. Since certain online gaming licenses have limited recognition, banks, payment service providers (PSPs), and, in some cases, even payment processing companies treat their holders as falling outside their risk appetite.

A lack of a sound banking partner closes the door for gambling businesses when it comes to payment processing, operational accounts, and dividend distribution in fiat (crypto is still considered as an option). A successful launch, as such, often depends on identifying credible banking partners and understanding their onboarding requirements well in advance.

Gaming license costs and fee structure are other important aspects that gambling founders look at. What are the first-year and license renewal fees? Does the regulator apply a fixed annual license fee or a revenue-based model tied to the company’s growth? Is the license valid for 1 or 5 years? Clear answers to these questions should form a basic price understanding.

In addition, ongoing compliance and operational maintenance costs, such as staffing, legal advisory, audit, AML monitoring, and reporting, should be considered. Associated costs may be substantial, influenced by the local wage level, cost of living, and regulatory complexity. Importantly, however, a higher license fee and operational expenses do not guarantee lower taxes or reliable banking access; rather, it categorizes each license based on how well it suits different gambling operators, as outlined in this guide.

As a result, not all gambling licenses are created equal, a principle equally applicable to the market access each license provides. Certain nations issue ones that allow only domestic operations, while others provide broader access to international markets. That said, determining the license reach and ensuring it aligns with the company’s target audience is essential before applying.

On top of the aforementioned, the majority of gambling operators aim to offer their services to players in the most sought-after locations, namely the UK and the wider EU. Holding a license recognized and allowing services provision across EU member states, therefore, grants access to one of the most lucrative gambling markets with high consumer spending and advanced regulation.

However, gambling operators must opt out of offering services in jurisdictions, including certain EU member states, where online gambling is prohibited to avoid enforcement for breaching local laws. Where available, they should instead apply for the relevant local license.

Keeping all these factors in mind, each with its own intricacies, might appear overwhelming for the C-suite executive behind a gambling startup. Without prior expertise, finding the best licensing solution is near impossible; online recommendations rarely fit the unique needs of every business. Since there is no universally applicable licensing path, many future gambling businesses opt for qualified professional support from firms like Inteliumlaw.

With the expert advice on getting a gambling license from Inteliumlaw or other dedicated law firms, operators can sleep well at night, rest assured of receiving a bespoke solution precisely aligned to their business model.

In the end, most operators come to a decision that this milestone is best entrusted to experts, preferring seasoned guidance over navigating licensing options, requirements, and application forms alone.