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Casino Regulators Comparison: Part 2

Operators can choose from several fiat-money and Bitcoin online casino licensing methods. Each regulator offers licenses that come with a different set of requirements and various ways from which businesses and customers can benefit. But the question is: Which of them gives the best offer?

The importance of Bitcoin casino regulation is just the same when it comes to fiat casinos and sports betting sites. Not only will Bitcoin online casino licensing ensure that operators are fit to run the business, but it will also protect players from all kinds of gambling business-related abuse. Many operators see the legality of Bitcoin gambling as reliant on the acquired gambling license. But how crypto gambling is regulated around the world depends on the type of regulation and licensing provided by each country.

With the success of our previous casino regulators comparison among Malta, Costa Rica, and Curacao, we bring you another comparison among regulators in the UK, Cyprus, and the Isle of Man.

Features UK Cyprus Isle of Man

UK Online Gambling License

UK

The online casino regulator in charge of distributing online gambling licenses is the UK Gambling Commission, which was formed through the initiatives of the Gambling Act 2005. Since then, the UKGC has been regulating commercial gambling in the region and even took over in 2013 the duties to regulate the national lottery. Compared to other Bitcoin casino regulation authorities, the UKGC does not offer a general license and instead provides different licenses for each gambling activity.

Licensing Requirements

Online gambling operators, including those that want to earn a Bitcoin casino legal status in Great Britain, would first need to identify the activity they wish to get regulated and authorized for by the license. This is essential as the UKGC offers individual license for casino, bingo, general betting, lottery, and more.

Applicants must also provide an address in the UK as well as provide all the necessary documentation as part of the Personal Management Licenses. These include:

  • Complete company structure
  • Credit, Criminal records, and PML of all people involved in the company
  • Funding plan for the business
  • Three-year projections
  • Three years’ worth of audited financial statements (for existing businesses)
  • Complete business plan
  • Policies and procedures
  • Technical compliance

Those seeking to obtain the license must comply with and provide all requirements in order for their application to be processed.

How to Obtain the License

Applying for a UKGC license is a long process as the regulator scrutinizes all the qualifications of all the applicants. Therefore, applicants must ensure that they have provided all the requirements as the entire process takes around 16 weeks to complete. Failure to submit all the information asked will only delay the processing.

The UKGC also encourages operators to apply for the license online as applications done by email or post will not be entertained. The Commission will only begin the process once it receives all the requirements. Moreover, operators that seek to get multiple licenses can do so, and may even qualify to get a discount if acquiring more than one type of license.

How the License Protects Players and Businesses

Operators of licensed Bitcoin casinos would also want to get a license from the UKGC. After all, its license gives an impression of premier gaming and service because the UKGC license is one of the highly sought-after online gambling licenses. This prestige, however, comes with a price as operators must pay a flat rate of 15-percent tax in gross profits.

Despite this, players will absolutely appreciate playing in a UKGC-licensed casino because of the assured protection they will receive should there be any concerns against the casino, be that in customer service, marketing, or financial matters.

Those already licensed in the UK must ensure that comply with all the rules imposed by the UKGC. Failure to do so will result in suspension of the license. This is exactly what happened to Dynamic, which trades as Prophet and Sportito, two online operators that failed to fully integrate GAMSTOP by March 31. Meanwhile, in November 2019, UKGC began offering its revamped ‘online service’ designed to improve the personal license maintenance application processes.

Cyprus Online Gambling License

Cyprus

Cyprus is an island in the Mediterranean that is popular for its land-based casinos but not so much for online gambling. In fact, it was only in 2012 when forms of gambling became legal in the country, but only sports betting without horse racing is allowed online. There are two types of licenses available: Class A for land-based gambling and Class B license for online gambling.

Licensing Requirements

Operators wishing to acquire the Class B license in Cyprus would need to set up a company in the country. Offshore companies, on the other hand, would need to be registered as a foreign company under the Department of Registrar of Companies of Cyprus.

They must also provide the following for documentation, as well as establish a back-up server in the country.

  • Notarized passport copy
  • Notarized utility bill issued in the last two months
  • Curriculum vitae
  • Bank reference letter

How to Obtain the License

Applicants must complete all the requirements needed by the National Betting Authority, including the following:

  • Details of financial information and criminal history
  • Business and financing plan for the next three years
  • Anti-money laundering and know-your-customer procedures
  • Internal procedures and agreements

All applications must also come with a bank guarantee amounting to 550,000 EUR valid for six months after the expiration of the license. The fee must be paid in advance. The license may last for one or two years, depending on the amount paid by the applicants. Operators need to pay 30,000 EUR up-front fee for one year or opt for the 45,000 EUR fee for two years.

Acquiring the Class B license is a rigorous process, too, that also takes time. The entire process normally takes two to four months.

How the License Protects Players and Businesses

The process and requirements in obtaining the license are among the strictest in the industry, but this gives licensed gambling business the assurance of excellent service for both the operators and the players. Beyond this, Cyprus boasts a progressive legislative system that ensures political stability. An established financial services industry and premier telecommunications facilities also make Cyprus a popular destination for online gambling businesses. Moreover, the license establishes regulations for player protection.

Isle of Man Online Gambling License

Isle of Man

Although Isle of Man is a British dependency, it is not covered by the UK laws. Therefore, the UK Gambling Commission has no authority over iGaming businesses setting up shop on the island. Despite this, the Isle of Man online gambling license remains one of the in-demand and highly regarded licenses available today. The regulator in charge is the Isle of Man Gambling Supervision Commission.

Licensing Requirements

Being one of the top-tier licenses comes with a price. For the operators, this means an array of requirements needed for their application. There are some of the basic requirements needed for documentation:

  • Certificate of no criminal record of the owners of the company to ensure that there are no criminal records about these owners, not older than three months
  • Bank references and copies of utility bills not older than three months
  • Detailed description of the games offered
  • Notarized copies of passports
  • Detailed business plan
  • Third-party certification of the RNG application and its fairness

The regulator also requires operators to set up a Manx company and establish a server on the island. The business must also delegate two local directors and appoint one resident designated official.

How to Obtain the License

All applicants must see to it that they have all the documentation in order for them to successfully get the license. On top of this, they need to pay 5,000 GBP as the initial license application fee, then pay 35,000 GBP per year for the main OGRA license, which comes with an initial five-year validity.

How the License Protects Players and Businesses

Isle of Man highly benefits operators by imposing low-tax status and promising them with political stability, business-friendly environment, financial stability, and diverse economy. It also stands out by becoming the friendliest online gaming legal space in the world. Moreover, the license protects players from abuse of the gambling operators, likewise abuse from the players.

Want to know more about online gambling licenses? Follow BestBitcoinCasino.com on Twitter for the latest news and developments in crypto and blockchain gaming.

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If you’re interested in getting an updated 2020 list of all Bitcoin casino reviews for this market, check out the casino review section.

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