The initiation of the iGaming culture can be dated back to the 90s. After the advent of the internet, the gambling industry experienced a major shift from land-based casinos to online casinos. The new digital realm of the iGaming Industry harnessed the latest technology possible and the power of the internet to revolutionize the Future of iGaming.
Eventually, the industry transformed itself and made its way into the mainstream Mobile gaming culture. Seeing its evolution we can only stress upon the ever-evolving nature of the iGaming Industry. Games like, Bingo, sportsbooks, live casino games, and eSports all come under the umbrella term of the iGaming Sector. No doubt, Various iGaming Apps have unlimited potential to expand; they have certain unimaginable challenges associated as well.
What is iGaming License Functionality?
As the industry adapts to the evolving technology to innovate its existing services, it faces certain challenges as well. One such problem would be falling prey to fraudsters on the internet leading to money laundering, data theft, and other associated risks.
Developing technologies determine the iGaming success. Various governments took the initiative to take care of this rising threat and safeguard the population from possible troubles. This is how iGaming licenses came into play— to deflect Challenges in the iGaming Industry.
Challenging History of iGaming Trends
Amidst countries that prohibit online gambling, the major governments across the UK, South Asia, and the Island countries, legalize online gambling with added layers of strict orders. But let’s admit it; imposed control of iGaming Regulation only takes away from the thrill of the game. In the iGaming arena, as much as it is necessary to keep the players rule-bound, it is necessary to find a sweet balance to allow them to let loose. Countries who have mastered this skill have always won in the race.
Take the example of the UK for instance– The market size of the UK online gambling industry was recorded at US$ 7.8 Billion in 2022. With that being said, it is considered one of the most well-regulated jurisdictions in the world providing player protection, self-exclusion, and limitations on promotional content.
The Interstate Treaty of Germany in 2021 enables the government to have a tight grip over online gambling regulations. It manifests as controlled marketing and advertising strategies, limitations on autoplay, and advanced player protection tactics.
Likewise, lottery services in Switzerland are state-regulated. This pattern of law enforcement is inspiring several other nations to embrace Types of iGaming.
Reasons to Get B2B and B2C Licenses
If you are an aspiring online gambling operator, it is mandatory to have at least one license authorized by a jurisdiction or a government body. This license approves your brand as a legally operating user-friendly website. It awards you with a stamp of credibility which the brand carries along to gain clients’ trust and invite new players to join. However, there are more to why one must acquire gambling license(s). The reasons are as follows.
- You get to operate in several countries and jurisdictions lawfully.
- You get to incorporate internationally recognized payment service providers in your platform. This generates a feeling of reliability in players.
- Added advantages in terms of little to no tax or VAT rates on profits earned.
- You get to enlist your app under well-recognized app stores increasing its visibility.
- You land a chance to advertise your website/app across desired platforms.
- You get to land the best sponsorships and advertisement deals as you provide reassurance of your performance which is being authorised by established regulatory bodies.
- You get a chance to partner up with the best gaming software providers globally.
- As a globally operating business, it is possible to miss out on trivial regulatory standards which can backfire as a heavy repercussion. A regulatory body can bulletproof your presence in dodging such unforeseeable hassles.
Not possessing a license will hold you back in several ways.
- Not adhering to regulations and guidelines can result in a conviction, hefty compensations, a tainted reputation, and even the permanent collapse of the business.
- The prospects of re-branding may permanently be a lost cause.
Types of iGaming Lisences
There are three major kinds of iGaming licenses which are currently available.
- Full License– for allowance of all types of casino games and sports betting with the provision to look after sub-licensed brands.
- Network License– This works akin to a full license but with an added allowance to look after an ecosystem of associated brand websites and their database.
- Sub License– Sub licenses allow lawful operation but in terms of the full license provider that they are registered under.
Summing up…
A gambling license is an absolute non-negotiable in the current market— for the digital well-being of your business as well as your customers. As an operator, we’re sure you can look through the challenges that come along the way & recognize the power of iGaming. But to stay sure, look for an online platform like Piegaming which offers seamless white-label solutions backed up by some of the best jurisdictions across the globe.
Don’t let the pressure of complying with legal nitty gritty affect your entrepreneurial spirit. Check out our website to know further. In our other articles, we have discussed the major license providers worldwide. Check them out for better insights into the world of gaming and iGaming compliances.
