Article about Licensing

4 of a kind

Repeated violations of forum rule 1.16 - troll
Joined
Mar 11, 2009
Location
New York
Although the chart on bottom which shows the ease of gaining a license for online didn't copy correctly, just place each fact under it's proper heading.


Online Gaming Licensing Reality
Licensing Online Gambling by Foreign Countries
by Chuck Humphrey


Online casino websites contend they are legal because they have gotten a license in one or more jurisdictions. The online casinos thus contend that they are legal gaming enterprises, not illegal gambling operations. Being licensed supposedly adds legitimacy and credibility to the business that has received a license. To my mind licensing should imply investigating and assuring the legitimacy of the licensed business and ongoing regulation of the licensee.

Is there substance to the licensing process in the jurisdictions that grant licenses to online casinos? What is the cost of the license? How much effort does it take to get a license? Are there any meaningful standards that have to be met to get a license? Is ample time provided to conduct a background check? Is the licensee required to prove its legitimacy? Is there any ongoing regulation and oversight by the licensing authority. Here is some background on the licensing process in Nevada and New Jersey, jurisdictions we know thoroughly investigate licensees. Information on the processes in the jurisdictions that license online casinos is not available, but some inkling of what it must comprise can be discerned from the costs involved in obtaining those licenses and the time it takes to get them.

In Nevada and New Jersey the applicant for an unrestricted gaming license can expect the process to take one to two years. The applicant has the burden of proving to the licensing authorities that it is legitimate and has the necessary skills available to operate a casino in compliance with the law. The applicant must pay the costs of the independent investigation undertaken to test the accuracy and complete truthfulness of its responses to the myriad questions answered in filling out the application. These costs routinely amount to between $500,000 and $1,000,000. There are public hearings to delve into personal and business transgressions admitted in the application or turned up in the investigation. These amounts do not take into consideration the legal fees that each applicant incurs in getting help and advice in connection with the process.

In Nevada the fees charged licensees are based on the number of slot machines and games that the licensee wants to operate. The annual fee is $250 per slot machine and between $200 and $1,000 for each table game. There are also quarterly fees paid on a per machine and per table basis. The annual total of these fees for a bricks and mortar casino with 2,000 slot machines and 200 table games would come to over $800,000. The licensee is also taxed on the gross revenue from the gaming operation, with the tax being 3.5% of the first $50,000 per month, 4.5% of the next $84,000 and 6.75% of the amount over $134,000. So, if gross revenues amount to $100 per day per slot machine and $500 per day per table, the annual gross revenue would come to about $100 million, with a resulting total annual state tax of about $6,700,000.

The following table is taken from information presented by Slogold, a member of the Haglley Holding group, which assists in setting up offshore businesses and obtaining offshore casino licenses. The table shows the license fees, tax rates, estimated times for licensing and estimated legal fees that an applicant can expect in each of the offshore jurisdictions noted.


Jurisdiction License Fee Tax Rate Time Legal Fees
Anjouan $17,500 0% 1 week $10,000
Grenada $40,000 0% 2-3 weeks $20,000
Antigua $75,000 3% 4-5 weeks $10,000
Mohawk Territory (Canada) [1] $10,000 0% 2-4 weeks $15,000
Costa Rica $100 0% 1 week $5,000
Dominica N/A 5% 3 weeks $20,000
Alderney $75,000 20% 1 month $10,000
Liberia $10 to $20 thousand 0% 2 weeks $8,000
Belize $30,000 0% 1 week $8,000
Panama $60,000 0% 1 week $20,000
 

4 of a kind

Repeated violations of forum rule 1.16 - troll
Joined
Mar 11, 2009
Location
New York
Although I was unable to gain access to any online regulations from any foreign countries regulating branch, if anyone wants to give it a shot below is a list of agency's that are big time players with present online casinos.

United Kingdom - Great Britain's Gambling Commission

Gibraltar - Gibraltar Regulatory Authority

Malta - Lotteries and Gaming Authority of Malta

Netherlands Antilles (Curacao) - Curacao Gaming Control Board

Alderney - Alderney Gambling Control Commission

Isle of Man - Gambling Supervision Commission of the Isle of Man

Kahnawake - Kahnawake Gaming Commision

Antigua and Barbuda (west indies) - Financial Services Regulatory Commission


Don't waste anytime with Costa Rica...
 

Pinababy69

RIP Lisa
Joined
Oct 15, 2004
Location
Toronto, Ontario - Canada
For Kahnawake, you can go here:

You do not have permission to view link Log in or register now.


Click on regulations on the left hand side of the page, and you can download a fairly lengthy PDF file....outlining their regulations.

And Kahnawake Poker, go here:

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Same deal.

I can also get you Gibraltar's regulations, I'm pretty sure. Have you checked online, or are you looking for a personal response from someone at each authority?

Malta, you may as well forget about. They are about as much "help" as a set of tits on a bull. I believe Alderney is quite good....that's just a perception though. And the others....don't know.
 

4 of a kind

Repeated violations of forum rule 1.16 - troll
Joined
Mar 11, 2009
Location
New York
Those are the regulations required for a license to operate a casino, not the actual game play regulations.
 

Pinababy69

RIP Lisa
Joined
Oct 15, 2004
Location
Toronto, Ontario - Canada
For the Gibraltar Regulatory Authority, this is the main page:

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Click on gambling, and you get a list of their 21 licensees. Click on documents, down the left hand side and you get here:

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There is a .pdf link there for their Code of Practice ie. regulations. It's a lengthy document I think...like over 20 pages. I can say that the GRA is very good when it comes to complaints. Takes them seriously, and does an extremely thorough investigation. They require a ton of info from both player and casino..before they arrive at any conclusions.

Also, it appears that Kahnawake can no longer be the butt of our jokes, since hiring Mikki Oster as their dispute resolution officer. Not more than a couple of weeks into her tenure, she had to resolve a case between a player and Casino Rewards. The issue was solved within a week, and equitably and fairly, IMO, for both parties. I posted about it in a bit more detail in Casino Industry Discussion, the Kahnawake thread (most recent one).

Not sure if this is the stuff you're looking for 4oak?
 

Pinababy69

RIP Lisa
Joined
Oct 15, 2004
Location
Toronto, Ontario - Canada
Those are the regulations required for a license to operate a casino, not the actual game play regulations.

I must be dense....do you mean you are looking for regulations regarding RTP, etc? If so, good luck with that. Other than requiring licensees to have their RNG undergo random testing (if that even, not sure)...I doubt you will find any. I don't think I've ever heard of a regulatory entity requiring casinos/softwares, to display RTP %'s on games, if that's the type of thing you're getting at?

Again, I apologize if I sound dense here, lol...I wasn't sure what you were looking for.
 

4 of a kind

Repeated violations of forum rule 1.16 - troll
Joined
Mar 11, 2009
Location
New York
I'm trying to find regulations on the games themselves. For example classification of card games, are they random draw card games or are they just classified as slot machines with controllable RTPS. Plus regulations on max and minimum RTP's that could be applied. How such rules are enforced and regulated. etc.

This type of information is available in all authorized gambling jurisdictions in the U.S. But unable to find any of these regulations for online casinos.
 

love2winalot

Dormant account
Joined
Feb 10, 2009
Location
Philippines/Visiting Las vegas
Hiya: If anyone could find out more about, "Isle Of Man". The MGM stated part of the reason they pulled out was to many restrictions, ect.
 
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