B2B Gambling License | Law&Trust International

Why Do You Need a B2B Gambling License and How to Obtain It?

Behind any gambling game provided to a user, there is not only a company that offers gambling services. To understand the picture, you need to move a little deeper. Before giving a player the opportunity to participate in a gambling game, any company must obtain a gambling license, and the software must be purchased from a certified supplier.

What does it mean?

In most jurisdictions, it is not enough to have a license to provide access to gambling for users; the software itself must be certified and purchased from a licensed provider. A software vendor license is a business-to-business license that provides access for software developers to a wide gambling market.

Only the key elements of the gambling games are subject to licensing, both the game itself and the software for accepting bets or randomly choosing a winner, and so on.

Why do you need a license?

The B2B gambling license opens up new jurisdictions to the service provider and provides access to new markets, which allows to reach more customers. This, in turn, allows you to expand the list of services offered in the online gambling industry. Online gambling is one of the most regulated industries in Europe, the possession of a license confirms the compliance of the proposed software with high standards and gives advantages over unregulated competitors. Licenses allow you to offer the software both under your brand and in the White Label form.

Choosing a jurisdiction for a B2B gambling license

In order to correctly determine the most appropriate licensing jurisdiction, it is worth considering factors such as simplicity, demand, availability, cost, and requirements.
Next, we will look at a few of the most requested jurisdictions for obtaining a license for a gambling software provider.

Jurisdictions

United Kingdom

  • The UK Gambling Commission adopted a newly licensed area facility in 2015 - software.

    The gambling software was defined in the Gambling Act of 2005, according to which it is computer software that is used to establish communication with remote gambling. Therefore, any software specifically designed for use in connection with online gambling must have such a license.

    Obtaining a gambling license from a service provider is a must for a software provider planning to enter the UK market.

Malta

  • As the first EU jurisdiction to introduce online gambling regulation, with an average of a hundred new applications each year, Malta is the largest online gambling jurisdiction in the EU.

    In connection with the recent reform in Malta, two types of licenses were allocated - B2C is intended for organizers of online or land-based casinos, bets, and other games, and B2B is intended for licensing software used by B2C license holders.

    However, this does not mean that Malta restricts B2B license holders exclusively to Malta territory. A licensed software provider is entitled to offer its services in other jurisdictions where this is not prohibited.

    Obtaining a gambling license is not a quick process as it is associated with the registration of a local company, opening an account and carefully elaborating on a business plan. Consideration of an application for a license takes from 3 months.

Gibraltar

  • Gibraltar is one of the most significant jurisdictions in the gaming industry. To enter this market, the service provider will need to obtain a B2B license. Most B2B gambling companies offer White Label services, in which the software operator provides basic gaming services, as well as customer services or payment processing to a third party that owns the brand, the websites, and a B2C license. All White Labels entered by Gibraltar operators require prior approval by the licensing authority, which in most cases is a relatively simple procedure involving the documentation of due diligence of a White Label partner.

Alderney

  • Alderney is closely connected with Guernsey, which allows the licensee to take advantage of both territories. One of the conditions for obtaining a license is the successful passage of software testing. Even though a license is formally issued before testing, actual activities can only be started after the completion of the testing phase.

    The Alderney Gambling Control Commission (AGCC) is recognized worldwide as one of the world's leading regulators of electronic gambling. The openness and innovative decisions of the commission allow the formation of a loyal attitude towards licensees, and the commission’s approach to regulation and supervision was borrowed by many other jurisdictions.

    Although an Alderney license allows you to operate in other jurisdictions, some countries, such as the United Kingdom, will require a local license.

    The advantages of Alderney include low tax rates on profits, VAT, and the absence of an additional tax on gambling.

    The main disadvantage of obtaining a gambling license in Alderney is the high cost of the license.

Curacao

  • Curacao is considered one of the most popular jurisdictions for obtaining licenses for online games since it has a rather favorable regulation.

    In Curacao, there are several owners of basic licenses who provide a complete package of sublicenses along with hosting and IT infrastructure. Thanks to the affordable set of sublicenses, Curacao is becoming one of the simplest jurisdictions to obtain both B2B and B2C licenses.

    The advantages of this jurisdiction include low tax costs and government fees, a fairly simple process for obtaining a license.

    However, there are also disadvantages in this jurisdiction. There is no obligation to use software from a licensed provider, that means less credibility for customers due to low license requirements, almost all licenses will be sublicensed.

Isle Of Man

  • In 2018, the local regulator announced its intention to begin issuing B2B licenses for software vendors.

    As part of the licensing process, vendors must test and certify their games. After checks by the regulator, games can be placed in the GSC games registry.

    Although the license is not required for software providers here, for operators holding a B2B license on the Isle of Man, any games in the registry will be available for use without requesting an additional test certificate.

    The regulator believes that this will significantly accelerate the process of integrating games with B2C license operators.

Before choosing a jurisdiction for obtaining a license, it is necessary to determine business priorities and tasks.

Based on the needs of the Client and the planned jurisdictions for the provision of services, the specialists of Law and Trust International will select the most suitable jurisdiction for obtaining B2B gambling licenses.

Our clients

Our team