Online gambling jurisdictions

The online gambling industry is a big interconnected world, and jurisdictions are safeguards here. They may be very strict, but it’s only for the benefit of the operators and the players.

As people can’t go to another country without special permission, like a visa, online gambling operators can’t start their businesses in the first place they like — they also have to obtain permission.

Here, the first challenge comes: there are many jurisdictions, and they don’t follow one rulebook. Instead, each region has its own laws and systems to control how gambling works within its area.

In this article, we will try to find out what online gambling jurisdictions are, and how to deal with them.

Definition and Function of Online Gambling Jurisdictions

An online gambling jurisdiction is a specific country, like Malta or the UK, region, or even territory, like Kahnawake and Ontario. This place has established regulatory frameworks to oversee and control online gambling activities within its borders.

Not every operator can work legally in online gambling jurisdictions. They need to get licensed to be a part of it.

Businesses go through hell and high water to get the covered license. Operators have to prove their games are fair and they meet all necessary standards.

On top of that, jurisdictions are competing over who can impose stricter requirements. Malta, the UK, and the Isle of Man are at the top of the list.

These jurisdictions have such rigorous legislation that almost any wrong action can result in the revocation of a license. But it made them the ‘gold standard’ in the industry. 

When operators don’t want to meet strict requirements, they can find an alternative option, like Anjouan and Kahnawake. Jurisdictions with an emerging reputation issue licenses and don’t require meeting high standards. 

For those who don’t want to play by the rules, there’s another path — unregulated markets. 

This is a ‘safe space’ where they don’t need to comply with legislation, pay taxes, or even refund winnings to players. 

Regulatory Standards and Licensing Requirements

To obtain a visa, a tourist must prove their financial stability and genuine travel intent, rather than an attempt to immigrate. The same applies to online gambling licenses.

This is the thing for regulating the industry. Jurisdictions issue licenses as entry tickets. 

Different jurisdictions have their own core requirements on operators seeking to enter their markets. But the common one include:

A Company Setup

First, applicants must register a company in the jurisdiction itself or in another reputable region. Legal address and other corporate details will prove this, if you submit them along with the rest papers.

Some jurisdictions, like Malta and Estonia, require operators to have a minimum share capital to show they’re financially sound. In Malta, it is ranging from €40,000 to €100,000, depending on the type of licenses. The same applies to Estonia, where applicants must have a minimum €1 million of share capital for games of chance and just €25,000 for games of skill.

But many jurisdictions, like Anjouan and Tobique, don’t require any minimum share capital, it’s enough to prove the financial stability of the operator.

Application Documentation

It’s a common thing to submit personal information, like a passport, proof of address with utility bills for the last 3 months, and more. Plus, operators prepare a detailed business plan, financial records and letters from banks, organizational charts, and even legal agreements. The list of papers can be endless.

Technical and Operational Requirements

One of the biggest challenges in obtaining a license is aligning online gambling services with the jurisdictional standards. At the same time, it’s a unique chance to improve the product. 

The thing is that operators must make their games fair, write strong responsible gambling policies with self-exclusion tools, limits on betting, and roll out user support.

They also must partner with secure payment providers, have data encryption protocols and introduce anti-money laundering (AML) policies. 

All of these requirements are aimed at showing that operators intend to play fairly and without fraud. Even with a license in hand, operators will have to undergo regular audits to prove their compliance.

Fee Obligations

Submission of required documents isn’t enough. Operators must pay an initial license fee. They vary significantly by jurisdiction and type of gambling activity.

Malta has four types of online gambling licenses for B2C operators, which differ by fees. For games of chance and sports betting, the licensing fee is €25,000. For skill games, it’s €10,000.

In Anjouan, the initial license fee is €13,000, the due diligence fee is €1,700, the compliance officer fee is €2,000, and the additional service fee is €828. 

But some jurisdictions charge the same price for several types of licenses. Tobique offers a license for B2C and B2B operators, as well as a vendor license. 

Key Authorities and Their Role in Regulation

Here is an overview of key authorities in the global iGaming:

​​UK Gambling Commission (UKGC)

The UKGC oversees all gambling activities within the United Kingdom, from online betting and casinos to lotteries. Operators, game providers, and players respect this authority for its stringent standards. This is out of reach for small companies and startups — only the heavyweights in online gambling can cut a deal with the UKGC.

Malta Gaming Authority (MGA)

The MGA is a highly respected authority in the EU. Having the license from Malta doesn’t open all countries in the EU, but it does boost an operator’s credibility in the eyes of other jurisdictions — even those that require their own local licenses. As other regulatory bodies do, the MGA issues licenses, monitors their compliance with laws, protects players’ funds, and conducts audits.

Curacao Gaming Authority (CGA)

The CGA regulates gambling activities in Curacao and issues licenses to operators worldwide. The authority makes its license popular among startups and offshore operators, though it offers less stringent consumer protections compared to MGA or UKGC. But the CGA is now trying to make a Curaçao license Tier 1, and it has become longer to obtain and more costly than it used to be.

Isle of Man Gambling Supervision Commission (GSC)

The GSC is the main regulatory body on the island. It regulates sports betting, casinos, lotteries, and software suppliers. This authority can also boast a strong reputation — so much so that it’s respected not only internationally, but even in the UK.

Tobique Gaming Commission (TGC)

The TGC is the official authority that oversees gambling in Tobique. The regulatory body issues licenses, monitors businesses, and enforces rules to make sure all gaming activities are fair and honest.

Anjouan Offshore Finance Authority (AOFA)

Anjouan is one of the autonomous islands of the Union of the Comoros. The AOFA is the primary regulatory body responsible for overseeing and supervising the whole financial sector on that island. As the island is a part of the Comoros, the authority operates under the Comoros Constitution. The AOFA issues banking licenses, Forex and brokerage licenses, cryptocurrency licenses, insurance licenses, and gaming licenses as well. 

Basically, every jurisdiction has its own regulatory body that oversees the gambling within its borders, regardless of whether it is state or offshore. 

Importance of Licensing for Operators and Players

There are regulated markets to protect both online gambling operators and players.

Operators used to working without a license might be in for a shock — but the business only benefits from it. With a license, they avoid fines, sanctions, or being blocked from the regulated markets and have a chance to build sustainable businesses with long-term growth prospects.

Players, payment, and game providers see this credibility and don’t mind spending money, time, and establishing a solid partnership with a reliable operator. As a result, it helps online gambling operators expand their business into new markets.

Players also benefit from licensed operators. As we know, operators go through a rigorous selection process, and only the very best are granted a license. If an operator has a license in Malta, the Isle of Man, or even Kahnawake or Anjouan, users can be sure that their website has passed numerous checks, provided all necessary certifications, and implemented responsible gambling tools. Thus, if things get tough, players might limit their spending or playing time, or even use self-exclusion.

Process of Acquiring an Online Gambling License

Here’s a breakdown of the typical licensing process:

Choose the Jurisdiction

The first thing operators have to do is select the jurisdiction that best fits their business needs. When researching, you need to consider what the jurisdiction requires, how much it costs, what the taxes are, and the approval time.

Different jurisdictions have unique rules. Some of them are more favorable for startups, while others fit better for established operators.

‍

Register Your Business

Most jurisdictions require operators to set up a legal entity. In some cases, it’s required to have an entity registered in the chosen jurisdiction, while others allow just to have it. From what we’ve seen, when operators apply for a license in Anjouan, they can set up a company in Belize or Costa Rica.

Prepare Required Documentation

Getting a gambling license is so far from just filling out the form — it’s a detailed process where you have to prove who you are, how your business works, and that you are running things legally and responsibly.

There are two main types of documents you have to submit:

• Personal Information: This includes things like a passport and proof of address for owners and key people involved in the business. Authorities want to make sure you’re legitimate, so they’ll ask for a clean criminal record and letters from your bank.
• Corporate Details: You’ll need to explain what kind of games you’re offering. That means showing certifications of random number generators (RNG), listing your game providers, and providing descriptions of games on your website.

But that’s not all. You also need to prove your responsibility. That means writing clear policies about how you’ll prevent money laundering (AML), verify your customers’ identities (KYC), and protect players from gambling addiction.

And finally, you will need a detailed business plan that explains how your company will make money and stay compliant.

We understand that this paperwork might seem overwhelming. Believe us, it can not be as challenging as expected with the assistance of professionals. With MGL, you need to prepare only personal papers, while our experts handle all the rest.

Submit Application and Pay Fees

When all documents are in order, operators have to pay a licensing fee, which varies widely by jurisdiction. Next, operators need to complete and submit the application form with all required supporting documents to the regulatory body.

Regulatory Review and Approval

The licensing authority will review the application, verifying all information and assessing your business’s impact on the jurisdiction’s reputation. They might ask for additional information during this period.

One way or another, the approval process can take several weeks, depending on the jurisdiction and complexity of the application.

Receive License and Launch Operations

Upon approval, you receive the gaming license. That means the operator is allowed to legally operate their online gambling business within the jurisdiction. However, they are still required to maintain compliance and provide periodic reporting.

Comparison of Leading Gambling Jurisdictions

As mentioned above, jurisdictions differ a lot across the world. The UK, Malta, Curacao, and Kahnawake have different regulatory environments.

In our experience, the UK is one of the strictest and most respected places to get licensed. It’s expensive — you’ll be charged 15%-31% tax on your gross gaming revenue (GGR). Meanwhile, licensing fees can go up to £57,304, depending on your business size.

But the tradeoff is reputation. We know the UK because of strong player protection. So, you’re serious about compliance and want access to a mature, trusted market, it’s a top-tier option.

In contrast, Malta is a good middle ground. The taxes are lower—around 5% of GGR—and licensing fees are more manageable, typically €25,000–€35,000 per year. It’s pretty cheaper than the licensing in the UK or Curacao. For a good price, you will get the license in the jurisdiction with strong online gambling legislation, which is well-regarded in the European market.

Historically, Curacao was the go-to for startups and smaller operators because it was incredibly cheap—0% tax on profits and low fees. But times are changing. The Curaçao government has approved the LOK law, which made the licensing process more expensive and stricter.

Now, fees reach €47,450, and the local regulator is dealing with a backlog of applications. Who knows, maybe the Curaçao license will be Tier 1, like Malta, the UK, or the Isle of Man.

What license to obtain if you are a startup?

Say hello to Kahnawake and Anjouan with an emerging reputation.

Kahnawake in Canada has low licensing fees and no specific taxes on gaming, plus moderate compliance requirements. That’s why it’s ideal for smaller or newer businesses that want to keep costs low but still run things legally.

Anjouan in the Comoros is a newcomer that’s gaining attention because of its ultra-low startup costs and minimal ongoing fees. But the regulatory oversight is weak, and banks tend to look suspiciously at companies registered here.

Good news: there is a workaround. Banks will welcome you with open arms if you register your company in Costa Rica or Belize. So, Anjouan might work for startups wanting a fast and cheap entry, but it’s not ideal if you want global trust.

Bottom Line

In the iGaming industry, a license is a necessary thing and even a strategic move. A lot of new operators think they can save money by skipping licensing and working in grey or even unregulated markets. But the truth is that it can backfire fast.

In some cases, running a business without a license ends up being more expensive — due to partnering with unreliable payment providers and unpredictable crackdowns — than just getting licensed in a top-tier jurisdiction like the UK or the Isle of Man from the start.

A license matters so much because it gives you legitimacy. From the player’s side, a license also means fair games, protection for their money, and someone to turn to if something goes wrong.

‍