Thoughtfully designed regulations create a market that is safe, customer-friendly, and competitive. Businesses have to abide by these regulations to be a part of this thriving online economy. Licenses are issued to good businesses that stand by these rules. And it is these licenses that tell the customers how to differentiate between a legitimate business and a fraudulent platform.
Needless to say, licenses are very important!
The Significance of Licensing in the Online Casino Industry
Online casinos take licensing very seriously. Apart from fulfilling the compliance requirement, another motive for online casinos to obtain a license is to earn the trust of the customer. Since there is money involved and data privacy is also a concern, most casino players make it a point to visit only those online casinos which can show evidence that they have the proper licenses in place.
When players see a license, they are relieved that they are entrusting their money with a genuine platform. Moreover, a license also gives them the confidence that an online casino is a legitimate business and will only indulge in fair gameplay.
Now, in the online casino industry, there are many licenses that a platform can apply for. But, there is a general sentiment that the UK Gambling Commission and the Malta Gaming Authority are the strictest authorities when it comes to gambling. There are certain countries where online gambling is banned, and still others where there is no clear law vis-à-vis online gambling. So, the responsibility falls back on the players to test if they are playing on a credible site, a job otherwise performed by a licensing authority.
How Can a Casino Get the Necessary Licenses?
Casino licenses have been created by the supervisory authorities to ensure the security of the players, their personal data, and their money. So, it is imperative for online casinos to apply for licenses only after they get their house in order.
Affiliate programs with proper casino licenses
It is the duty of the licensing authority to make sure that the online casino is running a legal and ethical business. If they find any evidence of tampering with the games or any other doubtful activity, the online casino will have to explain their side of things. The business has to make sure that they run fair games with regular pay-outs in order to run a licensed online casino.
One of the biggest tasks for any authority disbursing licenses to online casinos is to make sure that they have a strong and secure system in place. The online casino will be storing the personal data of the players including their financial data and their money. So, it is absolutely essential that it has the tools to keep all of it safe.
Online casinos may look alive and well, but their finances? Not so much. So, it remains with the licensing authorities to make sure that the online casino they are issuing a license to comes with a clean history, strong finances, follows the laws of fair employment, and other relevant regulations. They can run a thorough background check, so that every customer does not have to.
Licenses are not issued for an indefinite period of time. They are renewed regularly. This means that an online casino has to maintain the standards of game play and general business practices to make sure that they can get their license renewed. Irrespective of the popularity of the online casino, if the licensing standards are not met, their license can be revoked.
There are online casinos all across the globe and each of them come under the jurisdiction of the country in which they are based. So, this means that each casino has to live up to a different level of scrutiny by the licensing authority. Consequently, it is absolutely possible that an online casino may have a license which another online casino from a different country does not possess. So, players should be mindful of this fact and consider it while choosing a new online casino.
Is there a cost attached?
There are definitely costs attached to different kinds of licenses. An online casino has to pay for applying for a license, followed by the cost of maintaining that license and of course, renewing it. Online casinos go through all the trouble to make sure that they have a badge that says that they are doing business in a legal manner and also, it is a way of differentiating themselves from the hundreds of other similar establishments.
Businesses usually spend a sizeable fraction of their profits in creating a sense of credibility in the psyche of the customer. In the online casino industry, licenses automatically do it for them. So, online casinos do not really think of these licenses as an expenditure, but rather an investment that they make towards customer acquisition and improving the bottom line.
Licensing is an important and essential part of the overall online casino industry. What players should know is that online casinos and the licensing authorities put a lot of effort into making the online casino industry a safer place for them.
So, they should make sure that the online casino they are choosing to play is licensed by the designated authority. This way, they will be encouraging the business practices of genuine licensed businesses and in turn making the iGaming industry safer for each and every player.