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Want to start a crypto gambling site? Here is all you need to know in 2022

Wednesday, 26 October 2022

Starting an online gambling site in 2022 is an exciting venture with plenty of potential for success. But there are several processes you need to go through first, including getting a license and making sure you can offer crypto payments legally. If you want to offer crypto payment via your online casino or betting site, here is all you need to know.

Why would you want a crypto gambling license?

If you want to run a cryptocurrency gambling site, it is in your best interests to do so by following the law. In most cases, this requires having an online gambling license. The only exception is that of Costa Rica, where no permit is required, and it is only necessary to open a gambling company. 

However, this limits your payment options as banks will want to see a license to partner with you, leaving crypto as your only viable payment method. In other jurisdictions, you will need a gambling license, and you may also need to be observant and compliant with additional cryptocurrency legislation, particularly in terms of due diligence and knowing your customer.

Failure not to get a license where required can result in administrative and criminal charges, being prevented from getting a license in the future, and significant reputational damage.

What are the benefits of crypto gambling?

There are many different benefits of allowing deposits, bets, and withdrawals in cryptocurrency on your online gambling site. First and foremost, cryptocurrency provides a quick, efficient, low-cost way of transacting. There are no protracted clearing times and no big bank fees to pay as everything is done on the blockchain and decentralised. Furthermore, the process is more transparent and provides a high level of accountability. Another problem crypto solves is people who do not have a bank or are hesitant to use their cards online. Hundreds of millions of people are unbanked globally for many reasons. By offering crypto payments, you provide them with the change to engage in online gambling. Furthermore, those who may fear fraud or security issues will be reassured by crypto, which does not involve personal data or a connection to their card or online account.

Additionally, many people simply prefer to transact with cryptocurrency. This means that if you offer this payment method on your site, you will instantly be accessible to those who like to use it. This number is growing daily, and offering crypto payments provides a significant competitive edge for operators compared to those who do not submit it. Be one step ahead of the game and offer your players the ability to transact in fiat and crypto to ensure they feel safe and secure when using your platform.

Which jurisdictions allow crypto gambling?

In 2022, there are no specific rules outlawing cryptocurrency as a payment method in gambling. This is due to the fact that most jurisdictions do not consider it a form of legal tender. This creates a legal grey area, with many companies operating in uncertainty. There are, however, certain jurisdictions, such as Curacao and Malta, that have legislated in terms of crypto and offer crypto gambling licenses explicitly. In jurisdictions such as Kahnawake, there are no laws against it, and as long as operators abide by the terms of the license, they can accept crypto payments.

At Fast Offshore, we recommend Curacao, Costa Rica, Malta, and Kahnawake as suitable jurisdictions for companies offering fiat and crypto gambling. Of course, each has a different price point, application process, and set of requirements, as well as limitations. Before making your decision, you should always consult with your corporate service provider to ensure you are fully aware of the circumstances for each jurisdiction.

What is the process?

The process of applying for an online gambling license varies between jurisdictions, however, there are some constants. When applying for a crypto, fiat, or both gambling license, you can expect to go through the following steps.

  1. After deciding you want to start an online casino or betting site, you need to pair up with a corporate service provider. Opt for one with as much experience as possible, who is familiar with crypto, iGaming, and the jurisdictions you are interested in.

  2. Discus possible jurisdictions for licensing. Consider cost, set up time, requirements, compliance, ongoing maintenance, and matters such as renewals and audits. There is a jurisdiction to suit every budget and aim, just make sure you pick the right one, to begin with.

  3. Next up, you will need to compile all the documents needed for the application. This will often include due diligence documents for every director and shareholder, an application form, source of funds, document for a random number generator, agreements with third parties, company incorporation documents, and a business plan. You will also need to pay a fee when the application is submitted.

  4. Once the documents have been filed, your corporate service provider will keep you updated on its status and whether any other documents are required.

  5. Within a specified timeframe, you will receive confirmation of your license, and then you are free to start operating your online gambling site.

  6. In the meantime, you will set up a merchant account, payment providers, and a gateway to facilitate cryptocurrency payments as well.

Fast Offshore has been working with iGaming for 25 years and cryptocurrency for over a decade. We are experienced in compliance, corporate services, and all matters related to ongoing maintenance, payments, and structuring. To benefit from our expertise and our outstanding customer service, contact a member of our team today.

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