This is a guest contribution by Gilad Oren of GBO International Financial Services. If you would like to submit a contribution please contact Bill Beatty for submission details. Thank you.
If you want to run a successful online gaming business then you have no alternative but to get a gaming license. It doesn’t matter what form of gaming your website deals with if you are operating without a license you are putting yourself, your business, employees, your family and all those associate with the business at risk.
Gambling is a hot topic around the world and the subject is taken very seriously by regulators worldwide. The stringent regulation of the gaming industry will only become more and more regulated in the future. If you want to keep your business safe it is imperative that you abide by the laws of the gaming industry regulators, no matter what country you are in. Online gaming has become a big industry where only the strongest companies survive. Having a gaming license can protect you and give you the upper hand, making sure you are one of the gaming companies in it for the long haul.
The Risks of Operating a Gaming Website without a License:
Risk of capture and prosecution by the authorities – The authorities seek out illegal gaming activities in many ways. They can trace you through your marketing campaigns or through any kind of promotion you may make of your company. The authorities are patient, they don’t mind waiting as long as it takes to get you. Even hiding behind nominee’s services, trusts or international jurisdictions will not protect you. Eventually the footprint your company leaves behind will be tracked down and the authorities will come for you.
Just to give you an example: It is not unheard of for companies to happily operate their company without a license for years, accepting American players even though they don’t have a US license. And then suddenly, out of the blue one day they visit the US and the minute they set foot in the US they are arrested. This has happened many times even if a dozen years have gone by. Sometimes it takes just one complaint to spark an investigation.
Risk for your bank and PSP – It is impossible to run a business without a business bank account. To operate an online gambling company you have to have a bank account in order to offer payment options on your website. Without a license you will find it difficult to find a financial institute that will deal with you. If you do manage to find a financial company willing to take you on as a client they will demand high fees to cover the risk they are taking.
Payment Service Providers can be accused of assisting illegal activity if they provide your site with payment options. For example if you site is accepting payments from players in the US and you are not licensed in the US then your PSP is liable as well.
Risk of having no credibility – Who is going to trust an online gambling website without a license? Players won’t want to risk their money on an unlicensed, illegal website. And what kind of person is going to want to work for your company if it is illegal? Not being licensed does not inspire trust and sends the wrong message to employees and potential players.
Risk for your affiliates – Affiliates have been known to be arrested just for displaying a banner of an unlicensed website. Regulators can accuse affiliates of advertising illegal gaming if he has not blocked traffic from countries where the casino is not licensed.
So what is the solution?
Get a legal gaming license! Choose a country with respected gaming regulations like Britain, Gibraltar, Malta, Philippines or Curacao. A gaming license can cost as little as US$20,000 – and it is worth every cent!
GBO International Financial Services LTD is fast becoming a world leader in providing corporate services for international companies. These services include assistance with: incorporation of companies, opening business bank accounts, licensing, payment solutions, nominee services and more. GBO offers the most innovative A to Z financial solutions for high-tech companies, eCommerce, and more