The pandemic changed the landscape of gambling licensing for many reasons. Some countries remain largely unaffected. However, others are making significant changes to their licensing policies. This is to ensure compliance with local and international law.
This article will look at some of the changes that different countries have made to comply with the new regulations and how these changes will affect you as a gambler.
Licensing Requirements
The first thing you should know is that there are no two licensing requirements precisely alike. Each country has its own rules and regulations. Moreover, these vary from one jurisdiction to another. For instance, some countries require a license for all online casinos. On the other hand, others only require it for certain online games (like slots).
Some countries have a ban on all forms of online gambling altogether. This includes sports betting and casino games like roulette and blackjack. Others allow limited forms of gambling, such as poker or casino games played on mobile devices (such as tablets and smartphones). On the other hand, others legitimized how casinos can operate without Gamstop.
Types of Licenses
In the aftermath of the pandemic, the different types of gambling licenses are changing. The Government is trying to reduce the number of online gambling venues to avoid further economic damage.
There are three types of gambling licenses:
Casino License: A casino license allows the operator to provide casino games, poker games, and sports betting services to its customers within a fixed location.
Sportsbook License: A sportsbook license lets an operator provide sports betting services to its customers within a fixed location.
Poker Room License: A poker room license allows an operator to provide poker games only (no casino games or sports betting) to its customers within a fixed location.
Betting on Sports – It is All About Licensing
Gambling licensing on sports is changing during the pandemic. Therefore, many of your existing licenses may no longer be valid. You will need to apply for a new license to continue to operate legally.
To obtain a new gambling license, you must comply with the following requirements:
1- You must have been in operation before January 1st, 2021. You could not obtain a license if you had no revenue before January 1st, 2021. If you were operating but had no revenue before January 1st, 2021, you can still obtain a license as long as you meet all other requirements.
2- Your jurisdiction before January 1st must have licensed you 2021 (e.g., if Nevada Gaming Commission licensed you). Suppose you operated without any licensing or regulation before January 1st, 2021, or operated with an unrecognized agency like Gibraltar Gambling Supervision Commission (GGSC). In that case, you cannot obtain a new license. Moreover, you will need to cease operations immediately. Also, refund all players who have deposited funds into your account since January 1st, 2021 (or earlier).
Requirements for Sports Betting operators
The amended gambling license application form (GLA1) will include a new section for sports betting operators. This section requires applicants to disclose whether they intend to activate any existing licenses in the UK for sports betting.
Applicants must also estimate their annual sports betting turnover and explain how they intend to manage their risk of money laundering. Also, terrorist financing compliance obligations about their sports betting operations.
Applicants who do not previously hold a UK gambling license may require to submit more information. The information regards their business structure, ownership, control arrangements, and relevant corporate documents. These include their Memorandum & Articles of Association or Articles of Association (or equivalent documentation).
Virtual Betting Operator Licenses
VBOs are online gambling operators who provide services via the internet. These businesses exist primarily in two categories. Those who sell products like casino games, sports betting, or poker, and those who sell products like lottery tickets or instant win games. The Gambling Commission requires all VBOs who offer their services in Great Britain to obtain a license.
To obtain this license, an applicant must meet certain criteria set by the commission. One of these criteria includes holding an appropriate gaming license from another jurisdiction. They have been offering their services for at least three months before applying for a Great Britain license.
Final Takeaway
It is good to see further legislation implemented to better online gambling and the industry. While it isn't obvious here, we think transparency and honesty are a boon for players. It remains to be seen how things will play out when the new changes come into force. However, it would seem that all parties involved are committed to facilitating an even better experience for all involved.
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