How Essential Are Gaming Licenses to Online Casinos?
There is truth to long waiting times and sizeable fees online casino operators must endure to get licensed by credible online gaming regulators. At the same time, operators may need to apply for additional licenses if they plan to expand their market coverage over several other jurisdictions.
While the process of acquiring an online gambling license can be taxing, opting to run an online casino without one can result in different situations—all of which may lead to the casino’s demise. This is the reason getting online casinos licensed remain to be a hot topic in the iGaming community.
Should operators choose to run their casinos sans a license, these are some of the issues they should be prepared to tackle head on.
Lack of Banking Support
It is common for online casinos to accept several fiat payment methods. Credit cards like Visa and MasterCard, along with e-wallets like Skrill, Neteller, and Ukash, are some of the common deposit and withdrawal methods on board casinos. Failing to offer these, however, can be detrimental to the growth of the casino.
Poor services—lack of available payment options included—play a major factor in one’s success in the online gaming sector. This means that casinos should provide players with many ways to deposit into and withdraw from their account. Operators may face some obstacles, though, if they have no license. This is due to the fact that unlicensed casinos can only have a limited number of payment options based on certain jurisdictions. Although some casinos may opt to accept Bitcoin or other cryptocurrencies, having only few fiat payment methods limits the number of potential players who will sign up with the casino.
Trouble with the Law
Many jurisdictions have intensified their campaign against illegal operators. Online gambling licenses are one way regulators determine legitimate online casinos from scam and illegal casinos.
Unlicensed operators run the risk of getting caught if they are operating in most regulated jurisdictions. Even if operators are based in a different country, they can still be identified by the authorities in the area they are operating in. Most regulatory bodies do not have the power to catch an unlicensed operator outside of their jurisdiction. But, they are patient and can wait for a long time until an identified unlicensed operator is within their jurisdiction.
Because of the risk of getting on the wrong side of the law, affiliates within a regulated jurisdiction will think twice before joining an unlicensed casino’s affiliate program. Authorities in most jurisdictions can accuse affiliates who market unlicensed brands.
Lack of Credibility
Most online players regard licenses as a key indicator that the casino is credible. After all, licenses protect the money of players should anything bad happen to their account and balance. Without any protection, there is a high chance that players will not risk their money in an unlicensed casino.
Losing the ability to build trust among new players is a serious predicament for any unlicensed operators because they are the source of their business income. Players are likely to go to legitimate casinos online. They are ensured that casinos that have gone through the rigorous process have the protection of the regulatory bodies that have licensed the gambling site.