Gaming license is an essential factor in starting a standalone online casino. Besides improving the casino reputation and contributing to players’ trust, the license is required for creating the financial infrastructure and working with many software and game content providers.

Why is a gaming license required

A gambling license is a prerequisite to working legally and without complications. It is needed:

Applying for a new license Applicants for a gambling license undergo criminal and financial background investigations to help ensure only qualified persons operate gambling activities. Background investigations typically take about 60-90 days to complete. Click here to apply for a license. Renewing your license You will be sent a notice when your license is due for renewal. Online casinos should pay 5% tax from net income while lottery organizers pay 18% from the income. Advantages of Estonian online casino license. An Estonian gaming license offers the following benefits to operators: relatively low taxes; licenses are valid for 20 years; entry into the European market.

• To open a bank and a merchant account
• To work with electronic payment system providers
• To use gaming content from reputable, white-market providers
• For more effective marketing and oftentimes better player conversion
• For increased player loyalty stemming from perceived reputability of the casino

Getting a gaming license starts with making the most important decision on the gambling jurisdiction. The available jurisdictions mainly vary by the requirements to the casino operator and the software, the time of processing applications, and licensing costs.

Steps to follow before applying for the license

• Learn the available gambling jurisdictions, their requirements, costs, taxation policy and application processing time.
• Choose the jurisdiction that better corresponds your current needs and possibilities.
• Make sure that the casino software you are going to use meets the requirements of the jurisdiction. Licensing bodies in different jurisdiction pose various requirements to the software used by the casino. For example, the software shall have the appropriate functionality for supporting casino self-exclusion policy.
• Be prepared to incorporate a legal entity in the required jurisdiction: most of the jurisdictions require that the casino is run by a locally registered company.
• Start preparing personal documents in advance. Documents which are usually required for incorporation include passport copy, recent utility bill or other proof of address, certificate of no criminal record from the police, bank reference letter, and some other.
• Prepare documents on the gaming software. The list would usually include certificate of the RNG, detailed description of the software functionality and games, agreements with software providers, etc.
• Check if the online casino website contains the information required by your gambling jurisdiction. Many gambling jurisdictions check the availability of the information on terms and conditions, responsible gambling, self-exclusion policy, withdrawal policy, etc.

Getting a gambling license is an effort and cost consuming procedure which may last from several weeks to a year and make the online casino time to market very long. Professional help can play a decisive role in speeding up the process and eliminating unnecessary risks for the casino operator. SoftSwiss offers consulting and support in choosing the gambling jurisdiction, helps prepare the documents, makes sure that the software meets all requirements and facilitates communication between the operator and the licensing body. For those who want to launch their online casino within the shortest time frame and are not ready to wait until the license is ready, SoftSwiss is glad to offer its White Label solution.

Costa Rica Online Gambling License

Related materials:
How to start an online casino with SoftSwiss software

Gambling license in South Africa

Gambling within South Africa was largely restricted for many years, dating back to around 1673. Almost all forms of gambling were officially banned in 1965 with the passing of the Gambling Act. Horse racing, which was still considered a sport for many years, was however still legal, and the only place where people could place bets. This ban on gambling meant many illegal casinos began to pop up. By 1995 there were an estimated 2000 illegal casinos within South Africa. Luckily, with the new democratic government in 1994, the ban on gambling was lifted with the National Gambling Act. By 1996 the first legally licensed casinos were established and a single national lottery was launched. The National Gambling Act was the start of a diverse gambling community within South Africa.

Gambling and licensing

Gambling within SA is highly regulated and is done so by the National Gambling Board as well as the gambling board of each individual province.

Malta Online Gambling License Cost

The entire process of applying for a license is relatively straightforward. You can apply for a national or provincial license. A national license is generally for those applying as a manufacturer, supplier, maintenance supplier, or for those wanting to work within the gambling industry. A provincial license is simply valid within the single province in which it was issued and is better suited to and casinos or similar.

Both licenses may be applied for and issued through the provincial gambling boards and can be done by visiting the appropriate website (as listed below) and downloading the forms. The websites are quite easy to navigate and the entire application process will take anywhere between three months to a year.

Cost of a South African Gambling License

The cost of applications varies from province to province. Here are two examples:

Western Cape
Casino operator new license application fee: R 479 300.00
Casino annual licensing fee: R 239 650.00
Gambling employee fee (new application and yearly fee): R129
Bookmaker new license application fee: R11 977
Bookmaker annual licensing fee: R2403

North West Province
Casino operator new license application fee: R230 000
Casino annual licensing fee: R 100 000
Casino employee licence fee: R500
Bookmaker new license application fee: R6000
Bookmaker annual licensing fee: R5000

Other considerations
A big part of obtaining a South African gambling license is the probity process. This, in short, is a KYC process on steroids and will take up the majority of your time, effort, energy and money. Legal fees to complete this process can amount to hundreds of thousands of rands. While we understand the reason for the process, when compared to other jurisdictions such as the UK, Malta and Curacao, the same process is less bureaucratic and less authoritarian in their approach which is the reason why they have a much more vibrant and active gaming industry.

Maintaining Your License

Online Casino License Costs

Licenses are generally valid for different time periods across the different provinces. To maintain your license you will need to pay a set yearly fee, as given in the above examples. Likewise, if you wish to work at another casino or to move the premises of your existing casino, then you will need to apply for such. Employee licenses are linked to the position which they hold with a specific operator. Every Gambling machine or device must also be registered in order to be considered legal.

National licensees will need to comply with the applicable provincial law within whichever provinces they are conducting business. Provincial licensees will obviously be expected to do the same.

Failure to pay taxes, levies or fees will jeopardise your license as will non-compliance with any of the laws set out in the National Gambling Act. A person convicted of an offence in terms of the National Gambling Act is ‘liable to a fine not exceeding R10 000 000, or to imprisonment for a period not exceeding 10 years, or to both a fine and such imprisonment.
If a licensee is in breach of a condition of a license they are ‘liable to an administrative penalty not exceeding 10% of the annual turnover of the licensee.

You may surrender your license by choice via written notification to the provincial licensing authority.

Reposting Requirements

Suspicious or illegal activity can be reported directly to the respective provincial gambling boards or the National Gambling Board itself.

Anti-money Laundering

South Africa has three acts which relate to Anti-money laundering: the Prevention of Organised Crime Act (POCA), Financial Intelligence Centre Act (FICA), and The Protection of Constitutional Democracy Against Terrorism and Related Activities Act (POCDATARA).
The main duties of accountable institutions include:

• Identifying and also verifying clients
• Reporting any suspicious transactions
• Keeping records
• Training staff
• Reporting cash transactions over the prescribed limit
• In conclusion, formulating and implementing internal rules

Each legal gambling institution must ensure that all the necessary policies, procedures and systems are in place whilst ensuring full compliance with the FICA Act.
South Africa has a Financial Intelligence Centre (FIC) which is run under the FICA Act. There is also a Money Laundering Advisory Council who works alongside FIC and advises the Minister of Finance. All information regarding money laundering activities must be reported to FIC who will then hand over to the appropriate authorities.

TAX

Corporate tax in South Africa is set at a flat rate of 28% for all companies.
Although a withholding tax on winnings has been proposed since 2011, nothing has been set in stone.

Software Testing and Online Gambling

Any machine or device which needs calibration or certification must be tested by a licensed testing agent. The agent will need to make sure that the machine/device is compliant with the applicable standard. They record all test results and issue a report. The South African Bureau of Standards must then analyse the results and if found compliant they issue a letter of certification.

Online gambling is still illegal within South Africa except for online betting via a licensed South African bookmaker. Both the operation and advertisement of online casinos within South Africa are illegal acts.

Contact the South African Gambling Commission

For more information:

1. Gauteng:
www.ggb.org.za

2. Western Cape:
www.wcgrb.co.za

3. Eastern Cape:
www.ecgbb.co.za

4. Free State:
www.gla.fs.gov.za

5. Kwazulu Natal:
www.kzngambling.co.za

6. Mpumalanga:
www.mgb.org.za

7. North West:
www.nwgb.co.za

8. Limpopo:
www.lgb.org.za

9. Northern Cape:
www.ncgb.co.za

Alternative to a South African Gambling License

A curacao based gambling license is perfect for your business if you wish to offer services abroad. The license is regulated by the Government of Curacao and is accepted by all banks and payment service providers.

We work with the local authority assisting our clients with their gambling license needs, get in touch on Skype, WhatsApp or Email for further information.