Understanding Online Casino Licensing and Regulation

Why Licenses Matter

An online casino license demonstrates that the operator conforms to the highest industry standards. In most cases, prospective casino operator invest a lot of time and money in their pursuit of a license. Even if the operator secures a license, it will still be closely monitored to ensure it maintains those high standards. Let’s go over some of the key areas that licensed operators are required to provide.

• Fair Play: Casino licenses require operators to only offer fair games. This means providing games from licensed software developers that use Random Number Generators that are certified by accredited testing agencies like GLI, iTech Labs, and eCOGRA. The certifications ensure that all results are truly fair and random.
• Player Protection: Not only are online casinos obliged to provide the highest levels of security, but they must also provide the necessary tools and resources to allow players to protect themselves. For example, responsible gambling tools allow players to play within their limits and avoid overspending.
• Data and Financial Security: You need to provide certain sensitive details when you register and conduct financial transactions at an online casino. Regulators require license holders to use the latest security tools like SSL encryption and other layers to keep your information secure and out of the hands of fraudsters. Coincidentally, most payment providers are also regulated by entities like the Financial Conduct Authority to ensure all transactions are secure.
• Dispute Resolution: If you have a grievance with an online casino, you should try to resolve it with the operator. If you don’t get satisfaction, you can take your complaint to the licensing authority who will step in to help resolve the issue.

Global Licensing Authorities

If you’ve ever played at an international online casino, then you are likely familiar with a few of the most prominent licensing authorities. If you aren’t familiar with them, here are a few of the most respected ones.

• Malta Gaming Authority: Online casinos are big business in Malta. No fewer than 300 online casinos operate on the island. These sites are licensed by the Malta Gaming Authority, which was established in 2001. In fact, the MGA was one of the first online casino regulators in the world. It is known for focusing on fair play and security while not being afraid to take action against operators who stray from the rules. Sites with MGA licenses are accessible in many regions.
• Gibraltar Regulatory Authority: The Gibraltar Regulatory Authority was established in 2000. Unlike many other regulators, the GRA is tasked with overseeing several areas, including telecommunications, broadcasting, and data protection. It also regulates the country’s online casino industry. It has long been a trendsetter when it comes to player protection, security, and combatting underage gambling.
• Alderney Gambling Control Commission: Established in 2000, the Alderney Gambling Control Commission is an independent gambling regulator that is known for its no-nonsense approach and demanding requirements. There are approximately 2,000 online gambling sites operating with Alderney licenses. This regulator is so respected that Alderney-licensed gambling sites are permitted to offer their services in the UK.
• Curacao eGaming: Curacao has been licensing and regulating online gambling since 1993. The regulator has issued over 1,000 online casino licenses. While it was once regarded as a lax regulator that wasn’t big on enforcement, it has significantly improved its reputation in recent years. One thing that Curacao-licensed sites are allowed to do is support cryptocurrency. Most other major regulators still prohibit this payment option.
• Kahnawake Gaming Commission: The Kahnawake Gaming Commission was established in 1996. At the time, Canada did not issue gambling licenses. However, Kahnawake Mohawks asserted their aboriginal rights and were legally allowed to let gambling companies operate on their land. A Kahnawake license is very prestigious as this regulator has continually strived to make online gambling safer and more fair. It has also worked with many other regulators to make other improvements in the industry.

Local Licensing Authorities

Local licensing authorities have become more common in recent years. The reason is quite simple. Licensing online casinos that operate in your region means that a lot of those revenues stay in the region. If you look at the United States, every state that has legalized online gambling has its own licensing authority. For instance, New Jersey has over 30 online gambling sites operating in the state and they are regulated by the New Jersey Division of Gaming Enforcement. Only those physically located in New Jersey can play at those sites. It’s the same deal in every other state with legal gambling.

Coincidentally, the NJDGE and the Kahnawake Gaming Commission came to an agreement in which the KGC will no longer issue licenses to operators that accept American players. A similar agreement was reached between the Alcohol and Gaming Commission of Ontario and the United Kingdom Gambling Commission.

There are also several other local authorities operating throughout the world. Sweden, Italy, France, and Germany are just a few examples of European countries that have their own regulators. The same applies to the Australian states and territories as well as Canadian provinces. Perhaps the most respected local gambling regulator is the United Kingdom Gambling Commission. The UKGC was established in 2007 and it provides one of the strictest regulatory environments around. Many emerging regulators imitate the UK model.