Offshore Gaming License

Offshore Gaming License

• Any business operating any form of online gaming is required to obtain an offshore gaming license or authorization to do so. As the online gaming industry is going from strength to strength and through the incorporation of innovative and dynamic technologies, its growth is set to continue exponentially for the foreseeable future.
• This has led to an uptick in the number of regulatory authorities requesting information about online gaming licenses from such companies to verify their stand in the market.
• Considering this, it is advisable that every company wishing to operate a gambling or gaming-related business should apply for and acquire an offshore gambling license.
• Tetra Consultants does not just assist with the acquisition of an offshore gambling license. We have worked hard to develop a comprehensive portfolio of services that we know meet the needs and requirements of our clients. With our years of experience with getting a gaming license, we are familiar with every requirement that can pop up, so we have made sure we can provide it.

What is an offshore gaming license?

• The first step in opening an online gaming company is obtaining the appropriate offshore gaming license. The permission issued by the special gaming committee is valid proof that the ongoing business is legitimate and the winnings payouts are guaranteed. An offshore gaming license is required for any gaming activity, including games with bets or luck: slots, poker, roulette, lottery, and sports betting.

Why do you need an offshore gaming license?

An entity having a valid offshore gaming license will be enabled of the following-

• Being a licensed online gaming business shows players your commitment to a fair gaming policy.
• Indicates transparency and so you have a better reputation in the eyes of the players.
• Shows players the gaming site can be trusted and their private details are secure.
• Promotes customer loyalty.
• Being a legal, licensed online gaming company makes relations with the authorities straightforward.
• Ability to set up a gaming merchant account.

What are the advantages of having an offshore gaming license?

• Gambling companies with an authorized license for providing gambling services to folks can procure legal software from prominent software companies. This renders reliable payment methods in many currencies and forms and initiates trusted relationships with the players who will subsequently know their outflows. Thus, winnings are secure and guaranteed.

With a standard offshore gaming license, you will be able to enjoy the following advantages:

• Operate in a long list of international jurisdictions legally
• Provide your product to citizens across the world in a legal manner
• Enjoy fiscal benefits such as zero tax or low tax rates in some of the offshore licensing jurisdictions
• Negotiate solid relationships and terms with payment providers and merchants including all the big names
• Open a settlement account in a range of jurisdictions
• Benefit from lucrative advertising deals, as well as advertise yourself elsewhere, or sponsor
• You will be able to work with the best hardware providers
• Get access to the best games and other forms of software for your platform
• List your gaming app on the Play and iStore
• Enjoy the credibility and authenticity that licensing brings. Your clients and potential customers will be reassured and more likely to pick you.
• You will not be at risk of being shut down, arrested, prosecuted, convicted, or fined for illegally operating an online gambling site.

What are the risks of not getting an offshore gaming license?

Remember, all online gaming platforms must be registered and compliant with at least one jurisdiction. Not doing so is a huge risk for you, your company, your reputation, and the reputation of the industry as a whole.

• Failure to have an online gaming license so is both illegal and unethical.
• This will result in difficulties in opening settlement accounts and onboarding payment providers
• It will make it much harder to negotiate or even get advertisers
• Operating without a license leaves you open to being shut down and being blacklisted from acquiring an online gambling license in the future
• Failure to adhere to a particular jurisdiction licensing requirements can have dire consequences including a ruined reputation, hefty fines, and even criminal proceedings.

Who issues an offshore gaming license?

• Each jurisdiction or country has its own governing course of actions and laws related to gaming supervised under the so-called Gaming Control Board. Gaming control boards come under various names and can be denoted as gambling commissions, associations, committees, etc.
• For example, UK Gambling Commission and Curacao e-Gaming Licensing Authority are both gaming control boards.
• The Curacao e-Gaming licensing authority received the responsibility to regulate the online gambling industry from the Curacao Ministry of Justice in 2002. Before that, it was controlled by the Curacao gaming control board.

What are the regulatory requirements and documents for obtaining an offshore gaming license?

The regulatory requirements for setting up a gaming company and obtaining an offshore gaming license vary for various jurisdictions. However, the regulator may want you to keep the following factors in mind.

Minimum capital requirements

• In most jurisdictions, there may be a requirement for having minimum capital to be followed by your entity.
• For example, in Malta, to obtain a Malta critical gaming supply license as regulated by the Malta Gaming Authority (MGA) you will have to meet the requirement of having minimum paid-up capital of €100,000 for Type 1 or Type 2 of Malta critical gaming supply license while for Type 3 & Type 4 there is a minimum capital requirement of €40,000.

Economic substance requirement

• A regulator may ask you to meet the requirement of the economic presence of your entity in the country of registration (real office, employees).
• For example, in the Isle of Man, the conditions for granting an Isle of Man gaming license by the Gambling Supervision Commission is that you should be a company registered in the Isle of Man and must have at least 2 local directors who should be individual and not corporate entities.

Required Documents

For a typical offshore gaming license you must attach a copy of:

• A business proposal which must include the address of registered office, proposed branches, and locations, name and profile of directors, tax clearance certificate of all Directors, description of operations and management structure, online sports betting industry analysis;
• Details of sports betting/online sports betting which must include prize and prize structure and operator game rules and participant code of practice;
• Certificate of Incorporation;
• Certificate to commence business;
• Shareholders agreement;
• Financial and marketing plan which should include evidence of financial capability to operate the business, capital budgets, 5-year financial projection, and the assumptions made in considering the figures d. Marketing and financial plan.

Notwithstanding, the authority shall satisfy itself with but not limited to the following:

• The identity of new applicants
• The passports or any national ID of the applicant(s).
• The business registration documents.
• Conduct further due diligence on senior management

What is the procedure for obtaining an offshore gaming license?

There is a variation in the procedure to be followed for obtaining an offshore gaming license due to the varying sets of legislation governing e-gaming operations for different regions. However, Tetra Consultants has summarised the standard procedure that follows in a usual engagement of getting a gaming license as follows:

Step 1: Evaluating the suitable jurisdiction and offshore gaming license requirements

• Depending on your projected operation of the company and the jurisdictions of your customer base, Tetra Consultants will advise you on the most suitable region and gaming license for your business model.
• Our team of experts will introduce you to the gaming licensing requirements of the proposed jurisdiction, which include paid-up capital requirements, local economic substance criteria, timelines, and regulations before the engagement begins.

Step 2: Company registration

• Tetra Consultants will undertake due diligence on the management and shareholders of the company. We will begin registering the company with the local Companies Registry once we have got all of the necessary KYC documents, incorporation documents, and power of attorney.
• After the company has been legally registered, we will finally deliver the corporate documents, including the Certificate of Incorporation, Memorandum, and Articles of Association, as well as other internal documents.

Step 3: Opening a corporate bank account

• Tetra Consultants will proceed with the process of corporate bank account opening with a reputable banking institution. The minimum paid-up capital mandated to secure the license will be deposited into this bank account.

Step 4: Preparation of documents

• Tetra Consultants’ legal experts will draft the required documents for the licensing application. These documents will include a detailed business plan with details of the games, rules, terms, and conditions, as well as software systems, financial statements, and other documents such as AML/CFT policies, as required by local regulations.
• After the documents have been drafted for review, Tetra Consultants will deliver you the prototypes. We will then send them to you for e-signature before moving forward with your license application.

Step 5: Meeting local economic substance requirements

• Tetra Consultants will assist you in meeting the requirements of the local regulator, such as having economic substance including a local registered address and approved qualified candidates. Our team will help with the hiring of qualified local employees.
• Shortlisting and initial interviews for key personnel, including the compliance officer, will be conducted by Tetra Consultants’ HR team. After that, you can compress down the final list of candidates to recognize who is the best fit for the team. Tetra Consultants will assist in the preparation of a contract of employment with the agreed-upon terms and conditions once the candidate has been selected.
• In addition, our team will compile a list of physical offices and send it to you. We will include important factors like monthly rental, location, and size so you can figure out which one is best for you. Tetra Consultants will prepare the rental agreement for you and the landlord to sign once the office has been selected.

Step 6: License application and other compliance requirements

• Tetra Consultants will submit the application to the local regulator once the aforementioned is concluded. Before receiving a license, you may be asked to attend an interview with the regulator and withstand a series of audits, depending on the jurisdiction. Tetra Consultants will train you for the interview and aid you with the regulatory follow-up actions that are required.
• If all goes well, your company will be granted an offshore gaming license and will be required to begin operations within a certain timespan in a way to sustain the license.

Step 7: Post-application compliances

• After you have obtained the necessary approval to conduct your gaming business, Tetra Consultants will support you in ensuring that you are in compliance with local laws.
• We will help you meet your yearly compliance obligations, such as submitting annual audited financial statements to local regulatory authorities and keeping track of your tax and accounting obligations.

How long does it take to obtain an offshore gaming license?

• Prior to the start of the engagement, Tetra Consultants will send you a project plan with the timelines stipulated for company registration, preparation of documents as well as license application. This is to ensure that all parties are clear on the upcoming project.

Our services

• Tetra Consultants is an international professional consulting firm specializing in preparing license applications for obtaining offshore gambling licenses. We can assist you in obtaining a specific gaming license or authorization from your selected jurisdiction, in order to lawfully operate as an e-gaming platform. We provide licensing services in all major jurisdictions that have introduced advanced legislation regulating such online gaming activities.
• Tetra Consultants will assist you with communications with the regulatory authorities, and government officials throughout the whole course of the engagement.
• In addition, Tetra Consultants can also assist with attaining other offshore financial licenses depending on your long-term business goals.

Find out more!

Contact us to find out more about how to get an offshore gaming license. Our team of experts will revert within the next 24 hours.

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