The Best Countries to Start an Online Casino
It takes hard-earned capital to launch a new online casino website. The costs include program development, partnership fees with gaming software developers, licensing fees, and advertising. Given what’s at stake, launching a new online casino requires that owners do the proper due diligence and make sound decisions.
One of the key decisions that each new online casino owner will have to make relates to which jurisdiction they want to call their regulatory home. This particular decision matters a great deal unless a new casino owner has designs on running a rogue online casino website.
Across the world, there are dozens of countries that permit online casino gambling. In most cases, there is a regulatory body overseeing such operations. It’s the rules that govern online casino gambling that make some countries more attractive as hosts than others. When choosing a jurisdiction in which to launch an online casino, the factors most worthy of consideration would be:
- The location of the jurisdiction
- The rules and laws that govern online gambling
- Customer access
- License fees
- Applicable tax rate on gambling revenue
Here’s a look at the best countries for an online casino startup based on these criteria.
Malta Gaming Authority
Malta is a body of islands that sit in the Mediterranean. The Malta Gaming Authority (MGA) was established in 2004 at a time that all forms of online gambling were taking hold. What the regulatory body has been able to establish is a regulatory safe haven for both operators and online gamblers.
Often referred to as the “world’s gaming capital,” Malta has become home to many of the world’s top software developers and online gambling site entrepreneurs. The MGA’s regulations make sense for all parties. As icing on the cake, license fees range from €5,000-€25,000 and an effective tax rate of only 5% is among the lowest in the world.
Curaçao
Curaçao is an island that operates under the Dutch crown. Curaçao eGaming and its regulatory predecessors started regulating online gambling in 1996. At that time, a great deal of the regulatory focus was on online sportsbooks, moving to include other forms of online gambling after the turn of the century.
From an operator’s perspective, a Curaçao license ensures a minimum of regulatory interference. The existence of Casino Extreme no deposit bonus offers is evidence that the regulator’s licensees have fair access to compete for business. While license fees of up to €4,700 a month are a bit high, that is offset by all-inclusive licensing and a 2% effective tax rate.
Antigua and Barbuda
For new online casino entrepreneurs who would prefer little to no regulatory intervention, Antigua and Barbuda would be a good place to look. The Antigua Gaming Authority and its regulatory predecessors have been around since 1994. That makes Antigua the longest-standing online gambling regulator in the world.
While the lack of government intervention has its benefits, the license fees ($75k USD for sports betting, and $100K for online casinos) are quite prohibitive. However, that is reasonably offset by a very low effective tax rate of 2%.
The UK Gambling Commission
The success of the online gambling industry has been driven by the UK for decades. There is little denying that aside from the new U.S. market, no country or region can boast more online gamblers than England and the UK. Given the vastness of online gambling in this region, there is a need for heavy regulation, something the UK Gambling Commission (UKGC) has been providing since 2007.
For operators licensed by the UKGC, there are lots of pluses and minuses. On the plus side, a UKGC license means prestige, which matters to online gamblers. Customers flock to UKGC-licensed sites because they know they are being protected. Operators benefit from this because of the high-traffic flow of customers to their websites and less competition from rogue operators. The initial license fee of just under £6,000 is also quite attractive as is unfettered access to plenty of government support services.
On the minus side, operators have to endure a robust effective tax rate of upwards of 21%. They also have to endure heavy fines should they not follow regulations.
Spelinspektionen Swedish Gambling Authority
In recent years, Sweden has become a new mecca for online gambling-related interests, including software developers and online gambling operators. The Spelinspektionen Swedish Gambling Authority regulatory body has set up a regulatory system that offers fair and clear rules that keep operators on a level playing field.
Like the UK, Sweden offers operators access to a high-participation online gambling community. What operators might not like are license fees of around €39,000 and an effective tax rate of 22% across the board. That tax rate is among the highest tax rates in the world, as are the protections offered by this elite regulatory body.
