Why Online Casinos Need A License To Operate

July 9, 2018 Posted in News, Online Security by No Comments

What Is An Online Casino License For

Most online casinos have a license from the government. Players may not understand these licenses, or their purposes, however there are legal and economic incentives for getting licensed. Licensing for online casinos is beneficial in many ways. Having a proper license can help an online casino avoid legal problems, gain players from particular markets, attract more players, and for the owner’s convenience.

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Avoiding Legal Problems

The potential of legal liabilities exists in almost everything a person does that involves money. For online activities such as a casino, there still must be a main station to house the servers and other remote gambling equipment. All governments require regulations and taxes for gambling. Due to these regulations, there can be penalties for casino operators who do not get a valid license. Owners of unlicensed casinos face the risk of being shut down and possibly prosecuted. The penalties are the main reason a casino owner might want to get a valid license before opening for business.

Gain Players From Other Markets

Online gambling regulations are not the same everywhere. This is something casino owners have to consider when they think their casino games can be played globally. Owners must do their research when they realize what areas they want their casinos to be played in. While some government agencies allow their citizens to play whatever they want, other agencies may specific regulations that require licensing directly from them for their players to participate. This is where strategic marketing comes into play. Owners must keep in mind that without certain licenses, they will not attract players of a particular jurisdiction.

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Attract More Players

Licensing can get expensive when an owner starts to look at licensing for player funds. The owner will need to cover keeping funds safe, games fair, and managers trustworthy and responsible at all times. Some government agencies do not offer protection, but simply want the fees from the license holders gaining and retaining a license to operate. Responsible gaming hosts and gamblers will think about the casino’s licensing as well as other features when determining where a player should play. Casino owners looking to make the short list of recommendations should keep the extended licensing option in mind before they get a license for an area.


An online casino does not have to fully operate out of one location. The finance and customer service departments can be in two different jurisdictions than the regulated server. The benefit of having everything together is simply the convenience of being able to handle server maintenance faster and work more effectively. There are cost savings in this that could possibly offset the more expensive licensing fees locally. Another thing for owners to think about is when they already have a land-based casino running. They may want to get their offshore casino license from the same government agency because they’ve already established a relationship with them. It could make things a little easier the second time around.

About The United Kingdom Gambling Commission

United Kingdom Gambling Commission was established back in 2005 and required any commercial gambling in Great Britain to obtain a license from them. The point of the gambling commission is to oversee online gambling operations and make sure the activities stay fair and legal, and don’t provoke any crime. The commission is also there to protect any vulnerable persons or children from exploitation or harm. Licensing in the United Kingdom is provided to any operators who offer arcade games, formal betting, cash bingo, gaming equipment and software, casinos online and non, and lottery.

Lukas Mollberg

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Lukas is the head author at FreeSpinsBonus and responsible for all content strategies and what casinos we review. Lukas has a background of playing poker in the early years of the poker boom in Europe. He became an expert within the online gambling and has been working as an author for several websites.

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