In most regions all over the world, online gambling brands without a license are treated as outcasts. Players deliberately check for licenses before signing up and if they can’t find one, they move on to the next. So what is so special about licenses? Why do brands like Optibet take licensing so seriously? Bettors know what they want and why these licenses are important to them but are there anything in it for these brands? We have the answers to these questions, so read on to find out.
To start with, many regions around the world demand a license to operate legally in their location. Meaning that any casino or sportsbook without a license there is deemed illegal irrespective of their reputation globally. And from experience, we can tell that no brand likes such because it tarnishes its image.
So acquiring licenses help gambling brands to project themselves as legal and reputable providers all over the world. This is why most prestigious names in the industry try to acquire as many licenses as possible—because it is never too much!
Promoting Relationship With Financial Providers
Casinos and sportsbooks cannot thrive and attain peak global status without the help of financial providers. By financial providers here, we generally refer to:
- Financial Institutions
- Virtual Wallet Providers
- Credit Card Operators
These are people that brands enter partnerships with to provide the best services to their customers. Financial providers are never comfortable with unlicensed brands—they want nothing to do with an illegal operator.
Better Chances With Promotions, Advertisements, and Sponsors
No matter how popular an online betting provider is, it still runs regular adverts to expand its reach. Take it from us – an illegal operator will have a hard time with publicity. But why? It is because very few websites will be willing to help them to promote their services. They will also have difficulties in getting new sponsors and running advertisements. We understand all these because very few websites and organizations are willing to expose their audiences to an uncertified provider. Besides, it could also tarnish their reputation.
So now, you can see that those with licenses are also doing themselves a favor because more external organizations, sponsors, and investors are willing to work with them since they are certified.
For most online betting providers to offer extensive services, they need contracts with gaming bodies and software providers. The more software providers they have, the more games they can offer to players. And as usual, no one will like to work with an unlicensed brand because what if it turns against users? Even gaming bodies and software providers want to play it safe as it could tarnish their reputation in the long run.
Some Of The Most Reputable Licenses
Now that we highlighted the importance of licenses in online betting, allow us to cap it with some of the most reputable licenses in the industry. If you are looking to start a brand, pay good attention to this section. And if you plan on being a player alone, these are the ones to trust when rating a brand.
A license from the Malta Gaming Authority is a green flag for players that know the prestige that the license holds. Brands attest to its reliability and it comes in four classes namely:
- 1st Class: Table Games and Online Gambling
- 2nd Class: Sports Betting
- 3rd Class: Poker Rooms
- 4th Class: For Gambling Software Sellers
The price may vary depending on the class you opt for, but the 4th class is the least expensive.
If you are out for a cost-efficient license, look no further than Curacao. This license is a great option for newer startups. As for the reduced costs, they have 0% charges on VAT and Tax which is very economical in the licensing space. And most importantly, their reputation is very solid so it will surely leave a good impression.
The Gibraltar license may be on the expensive side, but many brands love it because of its simple structure. It is one of the few gambling licenses that accept one-off fees so once you pay once, you are good for the year. They assure you of no disturbance or additional costs later in the year.
Other notable licenses include those from:
- Isle of Man
- The UK Gambling Commission
We believe that we have done enough to show you that licenses are important in online betting. And at the same time, it is beneficial for both brands and players. If you plan on being a provider, understand that this is a very important step to gaining the trust of players. And as a player, if you have not already done so, ensure that you add it to your criteria for choosing an online betting platform.
Read more: Most Popular Payment Methods for Betting