Valentyn Kyrylenko’s view about licensing online gambling in different regions

Licensing online gambling and sports betting, in particular, has always been a tricky task, especially for the operators. Rapidly – changing industry, a rise of profit levels and growing popularity of internet gaming has drawn the attention of many governments as a source of additional revenue streams.

Not so long ago, having a Curacao or Maltese license would be good enough to start an online gambling platform for the worldwide operations. It let the license holder open a bank account, sign contracts with payment system providers, cooperate with other product suppliers. It even let issue sub-licenses to the clients of the license holder whom he sold the gambling platforms to. Whether it’s a good or bad practice is entirely different topic, but at least it made it easy to start legal operation with limited budget, and let’s face it, that’s what most people want.

Nowadays, if you want to operate on the global scale, Curacao or Maltese license might not do a trick for you. Various countries, especially in Europe, require operators to hold their regional licenses. This tendency will continue with more countries following the suit in the very near future. One can obviously operate by changing the mirrors of the site, hiding away from the authority’s requests, changing domains etc, but let’s face it, it is rather a short-lived practice.

In my daily work as an IGaming consultant I quite often see people struggling to get a hang of licensing of online gambling. Strangely enough, but possessing enough money to start online operations, does not make this task any easier for them. In fact, quite often they fall pray to various so-called “Agencies”, sneaking advisers or other sort of dealers trying to cash out on their needs. So the main purpose of my article on licensing online gaming is to provide readers with credible information and resources which can shade more light on such sensitive topic.

After a software supplier or technology provider is chosen, licensing is the most important part in launching any gambling business. Below is a short summary of some gambling jurisdictions.

Montenegro:

The government can grant a local type of license on the territory of Montenegro only, it’s fully regulated by law.
A company must pay 25 000 EUR for the first year and 15 000 EUR starting from the second year.
Below are the conditions of getting and operating a Casino concession.
It’s necessary to pay at least 300 000 EUR, a fixed amount of 50 000 EUR per year and 10% of monthly profit.
For gambling clubs, the amount is 75 000 EUR, 50 EUR for each slot machine per month and 10% of monthly profit as well.
During the conсession period, games provider must:
1. Have at least 300 000 EUR of a capital asset.
2. During the conсession period and within 30 days after the concession term expires, have a deposit in the Republic Bank in the amount of 30% of the cost of the capital asset or a bank guarantee with the same amount.
3. Have a daily deposit in casino cash desk in the amount of at least 50 000 EUR for 5 tables, and 20 000 EUR for every next 5 tables (there can’t be less than 5 tables in the casino).
4. Also, concessionary compensation for gambling in a casino is paid. It consists of fixed and variable parts. Both are paid to the Republic’s budget.
5. Casinos are free from VAT payments.

Gibraltar:
Jurisdiction of Gibraltar grants an international license. Its cost starts from 70000 USD and depends on the type of gambling business and company structure.
Only those companies which have proven themselves in the gambling market and have licenses in jurisdictions with high reputation are allowed to consider applications for gambling licenses granted by the authorities of Gibraltar.
Below are the advantages of this jurisdiction:
– low taxation (for example, 1% tax on profit, but not less than 85 000 GBP and not more than 425 000 GBP);
– jurisdiction prestige;
– the straight legislative system in the field of gambling;
– a possibility of getting a legal trading account;
– government guarantees granted to licensees.

Australia:
In Australia, a gambling company can have only local type of license for land-based casinos. Online casinos were banned in 2001.
According to Victorian Commission for Gambling and Liquor Regulation there is a range of gambling fees related to licensing process.
Every year on July 1, the government automatically increases fees and fines associated with non-compliance under the Monetary Units Act 2004. Consequently, application fees increase as well.
From July 1, 2016 the fees for industry licenses are the following:
For venue operators ,a license costs $2155, renewal of a license – $1190, application for nominee approval  – $144,6.
For casino – redefinition of casino boundaries fee is $3884.
For bingo – license costs $2155, its renewal – $1190,9.

Antigua and Barbuda:
International type of license can be granted for online business.
Antigua and Barbuda is one of the most expensive gambling jurisdictions.
The license cost starts from 120 000 USD (depending on the license class and company structure).
If several types of online gambling from different classes are operating on the website, a license for each class must be obtained. In this case, the cost of full package of services is discussed individually.
For online casinos the license fee is 100 000 USD, for totes – 75 000 USD.  Moreover, the licensee is required to pay 20 000 USD monthly.
To renew a license a company must pay 5000 USD per year.
Licensing process is carried out in Panama, the largest banking and offshore jurisdiction in the world.

Costa Rica:
In Costa Rica, land-based gambling business is restricted by law. But these laws are not extending to online gambling, and there is no legislation specifically designed to deal with it.
There are more than 200 online gaming companies operating in the country.
In practice, a license for online gambling is not required as it doesn’t exist. There is also no any gaming tax.
License cost starts from 12000 USD.
Legal principles of taxation in this country do not apply to companies that are registered in Costa Rica, but conduct their activities and receive income outside the country. It is very important because corporation tax for a local company is quite large. It can reach up to 30% for large businesses and 10% for small businesses. Besides, there’s also a compulsory social security tax paid in the amount of 26,17% of wages.

Estonia:
Gambling companies can operate on the territory of the Republic of Estonia, on ships flying the National Flag of Estonia, as well as on the ships chartered on the basis of a charter contract by persons added to the commercial register of Estonian Republic.
To start gambling activity applicants need to pay state fees:
for games of chance organization the amount is 47 933,73 EUR;
organization of games of skill – 3195,58 EUR;
operating of tote – 31 955,82 EUR.

Ireland:
International remote bookmaker license fee is 10 000 EUR or 10% of the turnover of the licensed betting company earned from its activity.
Also, licensees are required to pay 10 000 EUR (maximum 500 000 EUR) every two years for renewing a license to operate outside the country. In order to apply for a license, applicants must first obtain a “personal fitness” certificate from the police of Ireland.

Philippines:
A company must pay license application fee in the amount of 40 000 USD which covers online casino and sports book (including non-refundable 15 000 USD).
48 000 USD are paid upon issuance of a license that is valid during 1 year. A renewal fee in the amount of 60 000 USD must be paid every year thereafter starting from the second year.
Licensees can not offer their services to the people of Philippines, but they can use developed Internet infrastructure.

Italy:
Gambling license in Italy is international and its’ cost is 350 000 EUR (plus 20% VAT ), this amount is paid upon issuance of a license, which is granted for 9 years. The AAMS license is available for any gambling operator under the jurisdiction of the European Economic Area (EEA, i.e. countries of the European Union, as well as Iceland, Norway and Liechtenstein).
A license can be granted directly to foreign applicants, in case they have an EEA passport.
It also can be granted to non-operators (startups or companies from a completely different business areas).
Operators must issue 1,5m euro of bank guarantee to AAMS and arrange an audit provided by an independent certifier in order to make sure the applicant has the necessary technological infrastructure, know-how and management resources to run the AAMS license.

Aruba:
Almost all types of gambling are legal in Aruba. It is a jurisdiction with low taxes and low license costs.
To start a casino a company must obtain a gambling license. Land-based casinos are allowed to operate only in case they are attached to hotels.
Online casino operators need to have licenses for operating as well.
It is known that the government of Aruba has not enough control over gambling industry, so this jurisdiction has a pretty poor reputation. It’s easy to get a license there, even too easy.
The casino pays a monthly fixed fee in the amount of 5000 AF, along with 4% of the amount of gross income.

Belize:
This jurisdiction grants Online Gaming License with the cost of 18000 USD for 1 year.
Annual fees are paid in the amount of 0,75% of the turnover per year (not less than 50 000 USD) or 250 000 USD.
There is also an application fee in the amount of 5000 USD. If a company wants to extend the license, it must pay 10000 USD.
To operate this business one must have registered and paid charter capital in the amount of 50000 USD as an extra guarantee of the applicant’s financial solvency for government agencies.
Only international companies registered in Belize can be applicants (IBC). In accordance with accepted standards, customer service must be carried out directly on the territory of Belize, while a remote gambling house server may be registered in any jurisdiction.
The license is valid for 12 months (with a possibility of renewal by filing in a relevant application 60 days before the license expires).
Gambling jurisdiction of Belize has a range of advantages:
Low license cost;
Fast process of getting the license (24 hours if all requirements are conducted);
The only tax is payment for the franchise.

Malta:
To apply for a gambling license a company must pay 2330 EUR. The license fee is 8500 EUR per annum. The application fee for renewal is 1350 USD.
Depending on gambling direction, the company obtains a license of a certain class:
1st class – online gaming – companies operating casinos, lotteries and slot machines;
2nd class – online betting shops;
3rd class – promotion gaming from Malta;
4th class – manufacturers of gaming equipment.
Licenses are valid for at least 5 years. They can be extended for 5-years period as well.
The jurisdiction of Malta has a good reputation and solid tax rates (for online gaming this amount is 7 000 EUR per month, for poker – 5% from the income, betting shops – 0,5% of the gross amount of bets accepted from players).

Isle Of Man:
An international license can be granted by authorities of Isle of Man.
Its cost depends on license type and company structure and starts from 35000 GBP per annum. Besides, there is also a non-refundable administration fee paid in the amount of 1000 GBP.
The Isle of Man license applies to all types of gambling activities. And it’s possible to get both a basic license (for running a large business in online gambling industry) and a sub-license (extending to small casinos acting on behalf of well-known gambling operators).
Among main advantages of this jurisdiction are the EU membership and favorable conditions for non-British companies.
Tax in the amount of 1,5% is a disadvantage.

Curaçao (Lesser Antilles):
There are two main types of international license in the jurisdiction of Curaçao: basic license and sub-license.
Basic license costs 60 000 ANG (about 34000 USD). A fee in the amount of 10000 ANG (6500 USD) must be paid monthly for the first two years.  At the end of this period, the amount can be reviewed.
The only difference between these types is that basic license allows the operator to grant sub-licenses to other companies which are under its responsibility.
The license of Curaçao is unified and applies to all types of gambling activities: from online casinos to bingo and online betting.
If online casinos and online bookmakers need to open a solid bank account, it is necessary to purchase the European A license that allows opening a Merchant account (trading account).
The license can be obtained from the Ministry of Justice of Curaçao (registration with the Foreign Trade Chamber as a legal entity is required). The sublicense can be received from the main licensee.
The jurisdiction has the following benefits:
– the low rate of income tax (2% of the company’s net income);
– no requirements to the software and financial indicators of the company;
– simplified taxation system (no need to pay sales tax and import duties or VAT).
The greatest disadvantage of this jurisdiction is that it’s hard to pass even the first stage of licensing process as the fees are hardly affordable for applicants.

Kahnawake:
Jurisdiction of Kahnawake grants international type of license. The following fees are required to be paid:
Application fee in the amount of 40000 USD, including a non-refundable fee for documents reviewing.
A refundable first annual fee in case a license is not granted.
5000 USD fee for each proposed key person.
The main advantage of this jurisdiction is its reliability.
There are also some disadvantages: it is necessary to substantiate the issuance of the license, software reliability and confirm financial solvency in order to make payouts to players.

Panama:
Probably, Panama is the most gambling-oriented jurisdiction. The main advantage of this jurisdiction is a lack of taxes (upon condition that bets are accepted from non-residents).
A license fee is 40 000 USD, it can be granted for up to 7 years.
Also, an annual license fee of 20 000 USD must be paid.

Dominican Republic:
Jurisdiction of Dominican Republic issues an international license for the online and land-based business.
When applying for a license, an applicant must provide a receipt, confirming the payment of application fee (RD 4,00 –  $108).
Licenses for gambling in the Dominican Republic are issued by the Casino Department under the signature of the Minister of Finance. But the final approval of applications is carried out by the National Casino Commission, which reports to the Minister of Finance (acting as chairman of the commission), and the Minister of National Security, general manager of Tourism and general manager of internal taxation.
In order to obtain a license for a land-based casino, gambling operators must meet the following requirements.
Potential operators must be the owners, leaseholders or licensees of a first class hotel. At the same time, licensees may delegate casino management to a third party. In this case, the manager will be responsible for legislation compliance in the field of casino and for gambling taxes payment.
Gambling establishments must be located in a region of tourists interest.
The operator must be solvent, and its shareholders or partners must have a good reputation.

Denmark:
Jurisdiction of Denmark grants a license for online and land-based business for operating in Denmark only.
Annual fees, license application fee and duration of a license depend on its type.
The cost of the betting license application is 261 800 DKK. It is valid for 5 years. After validity term expires, it can be renewed with the fee of 104 700 DKK. Due to indexation, this amount changes every year.
The annual fees vary from 52400 DKK  to 4 511 500 DKK.
Local pool betting license can be granted for 3 years. There are no application and annual fees.
Authorities of Denmark can grant a license for land-based casinos for 10 years.
Regarding gaming machines and slots, there is no application fee, but 600 DKK must be paid per every machine. Duration of the license is 5 years.

Belgium:
License in this jurisdiction can be granted for a land-based business operating in Belgium only.
Apart from the guarantee fee in the amount of 250 000 EURO, annual fees must be paid for A license.
To obtain B license 75000 EUR must be paid by the applicant.
The first thing any potential online operator has to take into account is that in order to get the online gambling license in Belgium, at first one must become a land-based operator.
There are several types of gambling licenses in Belgium named from A to F. Each license is intended for different types of gambling business – A for casinos, B for slot machine arcades, etc.
A licenses are valid for 15 years, B licenses – for 9 years.

Croatia:
Gambling in Croatia is divided into 4 categories:
Sports betting.
Lottery (including bingo).
Games of chance with instant win.
Slot machines.
If an online gambling company wants to operate on the Croatian market, it must apply for a license.
The associated fee that must be paid is 3 000 000 HRK (about 500 000 USD), 500 000 HRK  (95 000 USD) for land-based casinos and 1 000 000 HRK (195 000 USD) for betting shops.
Internet market is closed for foreign operators as a special local license is required for each type of online gambling.

Macedonia:
Gambling in this country is completely legal and regulated by the government.
In accordance with the legislation, there are 3 categories of games of chance:
General (including lottery);
Special – sports betting shops, casinos, slot machines).
Internet – includes Internet games from the above categories.
It has to be said, that this categorisation doesn’t have any differentiation principle.
The license for internet gambling is valid for 4 years and costs 50 000 EUR. Corporate tax rate is 10%. Every month operators also have to pay a tax in the amount of 0,5% from the total amount of accepted bets.

Serb Republic (Bosnia and Herzegovina):
This jurisdiction grants licenses for online and land-based business.
To obtain a license the company must pay 200 000 KM as an application fee (about 100 000 EUR).
Corporate tax is 10%.
There is also 4% tax that must be paid from the difference of the total amount of bets accepted from players and the total amount of winnings.

Spain:
Jurisdiction of Spain grants local licenses for online and land-based gambling companies.
If a company wish to offer its services on the Spanish market, a license must be obtained from the authorities. At first, it must be a General license, then a specific license for a certain type of game it wants to operate.
The cost of licenses depends on their type and region. License duration depends on that factors as well. But usually, it is valid for 10 years with a possibility to renew it for another 10 years.
To apply for a General license for bets and other games operator must have paid-up share capital in the amount of 100 000 EUR minimum, and 60 000 for a General license for contests.

Bulgaria:
The license can be granted for online business (operating on the territory of Bulgaria only).
An amount of application fee depends on the type of a game:
Raffle – 2000 BGN
Casino – 35000 BGN
Gaming halls – 7500 BGN
Other games – 20000 BGN.
There is also a license fee of 56000 USD charged from operators. Besides, 20% from the difference of accepted bets and the winnings payout must be paid.
Duration period of the licenses is 5 years and it can be extended for a 10-year period.
Bulgarian jurisdiction is very flexible and business oriented authority. There is no need to take bank guarantees in regulator’s favor or to keep the players’ funds in a separate bank account. A few technical requirements must be maintained in order to obtain a license. The ability to use .com domain is also an advantage.

Cyprus:
The license can be granted for both online and land-based business.
Applicant has to have a 500 000 EUR of paid up capital and produce 550 000 EUR of bank guarantee.
A license fee for the first year costs 30 000 EUR and 45 000 EUR for 2-years license. Also, in order to authorize a license, it’s necessary to pay 2000 EUR for the first year and 3000 EUR for the next 2 years. If a license is denied, the company receives 25% of paid amount back.

Moldova:
Citizens of Moldova can access local and foreign gambling websites.
In order to start gambling activities, one needs to get a special permit (license). The license is granted for up to 1 year only to a legal entity.
The fee for granting of a reissued license for gambling activities is 2250 lei, fee for issuing a duplicate license is 10000 lei. Only a legal entity with a charter capital with the amount not less than the equivalent of 25 000 USD, which is fully formed by the moment of the license received, can be a licensee.
Here is the amount of license fees need to be paid to start gambling business:
Casino – 600 000 lei;
Slot halls  – 200 000 lei or 25 000 lei per machine.
The taxpayers pay excise duties and a fee for obtaining a license at the following rates:
a slot machine – 3.600 Lei,
an electronic roulette – 20.000 Lei,
a gambling table – 90 000 lei;
arrangement of betting and lotteries – 14% of the total cost of accepted bets or sold tickets.
Excise rates are set ad valorem as a 25% of license cost (license fee).
In order to start gambling activity it is required to receive an excise certificate from the tax inspection. The fee for a reissued license and its copy is set in the amount of 1800 lei, and for issuing a duplicate license – in the amount of 9.000 lei.
At the moment of license application the following amount of charter capital is paid:
for the casino – 600 000 lei;
for national lottery – 250 000 lei;
for slot machines halls and betting points – 200 000 lei;
for regional lotteries – 150 000 lei;
for skill games 50.000 lei;
for each slot machine 25.000 lei.

Dominica:
Jurisdiction of this country offers offshore licenses for online business.
In order to start an online casino, applicant has to pay 15000 USD for a license. Licenses for an online lottery and online sports books cost 10000 USD each.
The license fee in the amount of 15000 USD has to be paid every year by January, 15. Also, 5000 USD must be donated to charity.
It is necessary to choose the form of tax that licensed company will pay.
It can be an annual fee in the amount of 5% of company’s gross income or 50000 USD.
Registration of online casino, Internet lottery or Internet sports books can be realized only through an authorized government agent. The license holder has to have its own registered agent during all period of gambling activity and make a business plan for the next five years.
Tax payments are divided into two parts, that have to be paid every six months. The first one is paid 6 months after the license is obtained.
It is also required to register an IBC company (International Business Company) with a paid statutory fund of not less than 500000 USD, where 100000 USD must be frozen in government funds for the entire period of casino operating. A contract for license obtaining must be signed with the Minister of Finance of Dominica personally.
In order to operate online business server must be located on the territory of Dominica.
Gambling company has to submit an annual audit in a simplified form to the government of Dominica.

Belarus:
The license can be granted by this jurisdiction for land-based business.
The cost of application processing is 10 EUR, the cost of the license is 90 EUR.
Licensing of gambling business includes the following components of work and services:
casino maintenance;
slot machines halls maintenance;
tote maintenance;
bookmaker’s office maintenance.
Currently, only legal entities registered in the Republic of Belarus can receive a gambling license. There are fixed rates of gambling tax per unit of taxation object:
4 845,93 BYN – gaming table;
184,56 BYN – slot machine;
993,45 BYN – tote cashier desk;
496,73 BYN – bookmaker’s office cashier desk.

Ghana:
Jurisdiction of this country grants licenses for land-based business. Every license must be approved by the National Redemption Council.
It can be granted for 1 year, its cost is c5 million. For license renewal, a company has to pay a renewal fee of c2 million.

Grenada:
Since 1966 gambling is illegal in Grenada. Due to this fact one can’t find any land-based casino in the country. Bingo and lotteries are the only legal forms of gambling.
In spite of the fact that online gambling is not regulated, authorities of Grenada offer licenses to online gambling operators.
40000 USD are required to be paid annually as a fee.
There are no large gambling operators in the country. The total amount of licensees is less than 10.
Low taxes and low operating costs are the advantages of this jurisdiction.

Liberia:
All types of gambling are legal in the country.
Since 2014 a proper license must be obtained by gambling operators. Since 2015 a necessity to have a license extended to online gambling companies as well.
Currently, there are 2 casinos operating in Liberia.
Gambling operators which wish to offer their services must obtain a license. Its cost varies from 10000 to 20000 USD. Also, it is required to pay 8000 USD for its legalization. There is no taxation for gambling companies in this jurisdictions.

Hungary:
In Hungary, gambling activity is regulated since 1991.
Duration of a license depends on the activity. For example, for Class 1 casinos duration period is 20 years, for Class 2 – 10 years.
Operators must pay the following administrative fees:
Casino table – 20 000 HUF.
Slot machines – 2000 HUF.
Card table – 18 000 HUF.
A license granted to a gambling company for a period of 10 years costs at least 350 million forints per year (about 2 000 000 USD). The monthly tax on gambling houses is 30%.
Today in Hungary there are tight standards setting norms and fees for gambling companies.
For casino owners the following administrative fees are paid: at least 40 million forints for 1st class casinos and at least 1 million forints for 2nd class casinos.
For casinos located in Budapest and Pest County other fees are used – not less than 600 million forints for 1st class and 350 million forints minimum for the second class casinos.
Besides, the income of gambling houses is also a subject to tax.
Currently, system of taxation for casinos in Hungary based on the company’s annual profit:
– 0 to 5 billion forints – 30 %;
– 5 to 10 billion forints – 1,5 billion forints fee plus 25% from the amount over 5 billion;
– over 10 billion forints – 2,75 billion forints fee plus 10% from the amount over 10 billion forints.
Сonsequently, the best option for Hungarian gambling companies is opening of small halls with slot machines.
To start operating slot machines halls the company has to meet the following requirements:
a company can carry out only this type of business activity;
slot machines should not be older than five years from the date of issue.
a company should have an appropriate place, a hall and operating staff.
The license is issued for one year. After the license expires, its renewal is required. A company should be registered with the following kind of activity: gambling halls business and operation of slot machines.
Minimum amount of charter capital necessary to start operation of online casino: is 50 000 000 HUF (180 000 EUR). Besides, a company must obtain a departmental certificate.

India (Sikkim):
Gambling companies can apply for online license. Roulette, Black Jack, Pontoon, Punto Banco, Bingo, Casino Brag, Poker, Poker Dice, Baccarat, Chemin-de-for, Backgammon, Keno and Super Pan are the only legal games allowed to play online in Sikkim.
In order to receive a license operator must pay an application fee in the amount of 500 rupees. A license granted after application approving costs 2000 USD. It’s valid for one year. If it’s necessary to renew it, company must pay the same amount – 2000 USD, and it will be renewed for one year.
Also, companies have to pay a tax in the amount of 1% of the gross income received from gambling activity. It must be paid by the 15th of the following month. A 20% penalty can be added in case of late payment. Besides, a bank guarantee in the amount of 5 crore (about 1 000 000 USD) must be produced in favour of government every year.

Jamaica:
Online gambling in Jamaica is legal for non-residents and tourists. However, there are two websites operating online under the government administration.
National lottery, horse racing and land-based casinos are also available in the country.
This jurisdiction issues licenses for land-based business. If a company wants to receive such license, it has to pay 150 000 USD.
There are strict rules for gambling operators set by the government, so gaming is not very popular in Jamaica. Only 3 licenses have been issued.
The following types of gambling are available in Jamaica: National lottery, horse racing, land-based casino with slot machines, card and table games.

Latvia:
Since 1998 gambling in Latvia is completely regulated by the government. Online gambling companies can operate on the market in case they are licensed.
Among the requirements necessary for obtaining a license are the following:
Shareholders capital in the amount of LVL 1 million (GBP 1 234 400).
General license application fee of LVL 300 000 (GBP 370 321).
Annual renewal fee of LVL 25 000 (GBP 30 860).
Impeccable reputation.
In order to apply for a license, one must be an EU resident.
Jurisdiction of Latvia has a good reputation and medium taxes rates.

Kazakhstan:
License can be obtained for online and land-based business. All gambling companies must have proper licenses.
The license costs 640 MCI (monthly calculation index used in Kazakhstan, from January 1, 2017 it equals 2269 tenge). In order to renew a license, a company has to pay 4 MCI and 640 MCI to receive a license duplicate.
In accordance with the legislation, gambling clubs and casinos must be located in two separate gambling zones.
76 licenses were issued in 2015.
Nowadays 16 casinos, 8 slot machines halls, 37 bookmaker’s offices and 1 totalizator are operating in Kazakhstan.
Kazakh online casinos are prohibited on the territory of the state, but foreign casinos are allowed as they are not regulated by law

Kenya:
Jurisdiction of Kenia issues licenses for land-based business.
Company has to pay 1 000 000 KSH for application. License itself cost 500 000 KSH and can be granted for one year only.
Government set the following taxes in gambling industry:
Betting shops – 7.5%;
Lotteries – 5%;
Gambling operators – 12%;
Prize competitions – 15%.

Netherlands:
Gaming authority of the Netherlands grants an Article 3 license since 1 January, 2017. It is valid for 5 years.
The following fees are based on the total value of prizes:
4500 EUR – 45000 EUR – the fee is 226 EUR.
45000 EUR – 450000 EUR : 907 EUR
450000 EUR – 4,5m EUR: 1588 EUR
More than 4,5m EUR – 2268 EUR.
The Dutch government is currently working on the new gaming law, including licensing of online gaming.
The tax rate for Dutch gambling companies was established in the amount of 20-25%.

Poland:
Polish jurisdiction provides local licenses for land-based gambling. Permit or license itself is not cheap.
The amount of fees for obtaining permits and licences is regulated by law and depends on the kind of gambling activity. For 2016 the fees are the following:
Casino – 32000% of the base amount (1 344 000 PLN).
Bingo permit – 5500% of the base amount (231 000 PLN).
Betting permit – 2000% of the base amount plus 50% per each POS.
Poker tournament – 100% of the base amount (4200 PLN).
Casino licenses, betting and bingo permits are valid for 6 years and can be renewed for a 6-years period as well.
To enter Polish gambling market a company must pay a deposit in the amount of 1,2 million PLN for operating a casino, 600 000 PLN for bingo and 40 000 PLN for bookmaker’s offices.
Extra amount is paid for every 3 new points, halls or buildings for gambling activity.

Romania:
License can be obtained by online and land-based companies legally registered in Romania.
To start any gambling activity an applicant has to pay the following license fees:
Mutual betting – 45000 EUR;
Fixed-rate or counterpart  betting – 25000 EUR;
lottery  115000 EUR;
Casinos – 95000 EUR;
Poker clubs – 15000 EUR;
Slot machines – 20000 EUR.
These licenses are valid for 10 years.
It’s required to pay a tax in the amount of 1000 USD for every gaming table. Companies which operate slot machines and bingo halls pay 10% of their income and 2% if slot machines are located in historical buildings.
In order to get a permission, applicant pays 216 EUR for operating a gaming hall and 160 EUR for operating slot machines.
Before opening a casino and obtaining a permission from the Commission, gambling operators must form a guarantee fund in the amount of 5000 USD for each gaming table to be located in the casino.
Romania is considered as a country that will license anything for certain amount of money.
This jurisdiction has bad reputation, medium tax rates, comparatively high costs of licenses and low operating costs.
Licensing regulations are unverified and do not correspond to EU legislation.

Saint Kitts and Nevis:
Poker, casinos, sports betting and horse racing can be legally operated in Saint Kitts and Nevis.
To obtain a license a company must pay a registration fee of 80000 USD. License itself costs 40000 USD annually.
The government grants general type of license which doesn’t make any difference between online games and land-based casinos.
To obtain a gaming license, a company must have an account in a bank in Saint Kitts and Nevis.
This jurisdiction has the following advantages:
Low tax;
Low operating cost;
Easily regulated;
Moderate license cost;
Favourable reputation.

Tanzania:
Gambling development is an important step towards free market and investment opportunities for Tanzania.
To obtain a license for land-based business company must pay just 15000 USD.
Currently there are 10 casinos operating in the country.
Taxes paid by casinos make a significant part of income to the government budget. Besides, 10 000 – 15 000 job positions have been created.

Vanuatu:
Vanuatu was among the first authorities to capitalize online gaming. Gambling license is one of the most expensive there.
To operate sports books a company must pay an application fee of 35000 USD, license itself costs 30000 USD per year.
For other types of operators registration fee is 75000 USD, apart of that, 50000 USD must be paid annually.
License is valid for one year.
There are also some taxes gambling operators must pay:
Corporation tax – 0,1% on fixed odds betting;
Extra gaming tax – 2,5% of gross monthly revenue.

As one can clearly see Licensing online gambling is taking a regional pass. Complying with various market rules is a tedious and expensive task not many operators are prepared to take on. Even though there are operators prepared to do it and hopefully this information will help such companies or private enterprenours.

Valentyn Kyrylenko works for the global igaming technological solution supplier BetInvest. The company is a provider of sports data (live and pre-match odds), gambling platforms and big data analytic tools built upon machine learning algorithms and deep data processing.