Episode Transcript
[00:00:00] Speaker A: Hey everyone, this is Max. And today we're going to speak about the licenses. Because if you are starting the business where you run the business and already cash flowing and have customers that come in and thousands of people that are working in your company, probably the question is, okay, what's going on with the licensing? Because your salary is changing, right? So now everyone is like panicking around asking the questions, which license to choose? Because all good Curacao is not there anymore, right? It still exists. The license gets prolonged for the six months. But what is the alternative? What is the substitute, what we should go into, where to invest money.
And that's the question we can address today because it's of utmost importance because you have to know what to do if you already run the business. And you have to do, definitely you have to know what to do if you're just starting your business.
So everything started back in 2023, actually 2019, but in 2023, where things started moving.
So in February, it was announced that the new license will come into play and the carousel is waiting to approve the new law. And now it's going to be a completely different product with a completely different price and everything. So everyone was really like stressed, what's going to happen to the master licensees? What is going to happen with our license? Can we even continue running the business?
And, you know, in February, or next to, or very, very close to February, things took the spin where the new Angie one license, like took the real, you know, spike in the boost and took off the ground and, you know, offered the licensing services for customers who had the Curacao license back in the day.
So first of all, let me address this thing. So some people say that the NG1 license is for the newbies, for the beginners.
I will tell you that three years ago or two years ago, same people, they spoke about the Curacao license the same way. Carousel license is for the beginners, for the newbies. You have to start with that and move on and so on, so forth. So there is no such thing as newbies in business.
I mean, you probably are going to invest hundreds of thousands of dollars in your business. So are you fine with being the newbies when you probably risk with all your, you know, savings and now putting that into some. Listen, I'm between the newbies. I'm here to make money. I'm here to run the successful business.
So with the carousel license, back in the days, like we're right now, at this very moment, there are international businesses that make billions.
So how is that like the newbies make billions. It doesn't make any sense. So the real thing is, and truth is that any license should have the value proposition. So if the value has the value proposition for the customer means you and for your clients it means that the license is good enough and you are good to go.
So there is no such thing as newbies, There is no such thing as starter license where you know, the whatever they say, it doesn't make any sense. It's like buying an iPhone. I mean probably, you know, Apple is not that stupid and they're targeting with their marketing messages people who don't have any issues spending 2,000 bucks on the iPhone, that love the design, love the brand. So they have the value proposition of their brand, of the product, of the service that they provide and everything else of the software that they do because everything is unique.
Same with Android and same with the Samsung brands or many other brands. You know, some of them have cameras with AI integrated and some people are just like, well, I need a cool phone with amazing camera and I want to use this AI feature. And I love the software. You know, I love the fact that I can plug it anywhere. I don't have any issues with any kind of, you know, Windows systems and so on. Whatever the reason is, it makes the product unique.
Same with the licensing. Licensing is the product. And if there is a new license, let's say you go and you launch your own license, will it be successful? Well, 99% out of 100 that it will not. Because any license that is out there that is successful, like the Isle of Man license, the Maltese mga, the Curacao or the Anguana and Tabique or the Kanwaugi, they are the most popular licenses on the planet. Right? So all of them, they have some value proposition. For whom? For you. So you have to ask yourself a question. Okay, what do I want to start with? What is my market? How much do I want to invest? What time do I want to invest into getting the license? What is my long term vision? To answer this question, and if it checks off all the boxes, then the NG1 license is good to go. Definitely not for newbies. All right, so this is the first aspect.
So should you choose the Engine 1 license or who should choose the Anguan license? Well, I'll give you that. So first, how soon do you want to go to the market? If you want to go to the market within a month or two, or maybe yesterday, then definitely, probably licenses like Malta or Isle of Men are not for you because it takes 6, 812 months to get the license. See the difference?
Just the same as with cars. With which car is better? Is it BMW, Mercedes or Lamborghini Aventador?
Probably all are amazing cars. But you will definitely not take your Lamborghini Aventador to groceries every day or to get your kid to the school with your wife. There's no place for that, right? Or you will not go with, you will not go camping with that car, right? So you need something, maybe a pickup, you maybe some different car, which is also good for the reason.
And this is the main differences between the licenses. Now the price, how much are you ready to invest in the business? How much are you ready to invest into the licensing? Because many business owners they're like eh, you know, licensing is something not very important or it's not just like, you know, something that you want to save money on in the beginning and not to go with licenses that cost €100,200,000 to get and maintain. Because there is one thing like application cost, like let's say 38,000 pounds. But then there is also the maintenance cost, people you have to hire, accounting procedures, directors that you have to pay, salaries for local substance office that you need some security measures and technical aspects that you have to follow and other rules that just drive the price up. And now it's not 38,000, now it's 120, 150,000 a year. Do you have the budget for such license? Okay, what markets are you going to target? Because with Anjuan currently it's the alternative to the Curacao.
And the Anjuan never actually position themselves as a competitor of other licenses.
With the Anjuan you have the broad reach, like just with the Curacao. So there are few countries you have to geo block and and for the rest you are not restricted to do the business. If you want to download the list to learn the countries where you have to geoblock your site, then you can do that down below this video for free right now. Go and download that list and read about the geographies that you have to eventually block. Otherwise you will lose your license. So the NGOI license, who is it for? Right, so it's for the startups who want to start fast. It's for the startups who want to start on a budget, want to spend hundreds of thousands on licensing. It's for the startups that want the broad reach, period.
There is no other license on the planet right now that would offer you the same old Curacao that always for the last year it changes the rules and, you know, the Ministry of Finance comes back with the news, and then, you know, it's impossible to get the license. And the license prologation is for six months, and then they come back again because nothing happens and nothing works.
Then they change rules again and then they present something else, you know, back, you know, one week ago, the parliament announced that they will not approve the new law in a way that it was presented by the Ministry of Finance. So now it's uncertainty again. So people who are starting the business, probably, they are not fine with an idea that, listen, probably, you know, our license will be there for the next five, six months, and then it will have to think what to do next. It's either to upgrade to a completely new product. It's like choosing BMW first, and now you have the Lamborghini Avantador.
Should we do that?
Big question, right? Depends on the model, on the budget, on the geographies, on everything. Or should we choose the alternative?
So here you can choose the alternative that will allow you to run your business for the next year without any problems. And you have a license that will be active and you can connect the partners, you can connect payment system providers, and you are good to go. So the question is, is the Angel One license just the same deal as the carousel, the old carousel license? No, it's not the same deal. Not yet. Because the market adapts, market changes. Now many online cuisine operators, they choose to shift and to manage the risks because of uncertainty with Curacao. And they get the Anguan or they're waiting for the Tabiq license. We'll have another video about the Tabiq license, which also is there to replace the Curacao license.
And currently the Anguan license is going up. So what goes up? All right, the first question you have to ask yourself is like, payments, right? So what about the payments? Can I connect payment system providers? Well, it's not one to one yet, because the market is changing and shifting. And if you want to know, like, okay, will this license support my market, where I want to get all the payment system providers for this market, then you have to reach out to us to check that out and to find that, because without that, you cannot make such a decision, right?
So that's the thing. Number one, will it get there? Yes, it's a big chance that it will get there, but it will take some time, two, three, four months. So by the time when you get your license, probably things will actually change because there is no alternative. And the business usually follows what Money. So if money go away from one place, money go to the second place. Business just shifts. And there are businesses that are fast to change and realize that okay, for their compliance. It's not a problem anymore to accept the angel license because it's kind of the same compliance with the QSL license.
Then they change the position fast and they're like, okay, we are fine to go with that. But then there are slowpokes or a little bit slower businesses, let's say that just like give it a time and they're waiting before, you know, new law gets approved with a curcel lock is in place and everything moves and then they will just pull the trigger to get this done. So the smart choice for you is to reach out to find out. Okay, we want to start with the market here. We want to start with the market here. We want to have a license. Which one works the best? So it's not like white and black anymore. There are like ways around and you have to have certain expertise to understand that. So certain expertise is what we do. So you reach out and we will basically tell you and explain you how it works. Where is the Anjouan? Anjouan is in the Camorran Islands. So it's just east of Africa and northwest of Madagascar. Right. And the license is regulated by the gaming world in the offshore Ministry of Finance. So it's regulated by the authority. Because many businesses, they have questions, okay, is it regulated? Or there is some private guy who created the license and now everyone is pushing. Now it's actually managed and it was created and now it's controlled by the authority. So I hope that answers your question where it comes from. The license supports all verticals. So if you are going to start online casino, where you want to start separately, the sport betting website, or probably you're targeting the lottery or maybe you just want to go with poker or something like that. So it supports all verticals, basically all games of chats. If you're starting B2C business, so you want to offer your product, which is online casino or sports betting, to the final customers who are simple people who just want to go and probably spend time and do some bets, then you can do that. If you are a B2B business that starts the. Let's say you are a software developer or your platform or one license supports it all. So there is no distinguishing between any types of business and you can get one license to support everything. Under one license you also get two domains. What it means, it means that you can have two different brands so you can start the online casino and the sports betting at the same time. You can start online casino in one country and the online casino in a different country at the same time. Speak to your marketing guys. What do you want to do?
So two domains are included. You can add more domains under the license. You don't have to have two, three, four, five licenses. If you plan to start like five or seven brands, you can have one license, but you can add domains under the license to include it by default. The license, as I said, is for the startups. The license, as I said, is for businesses that already have established cash flow and, and are looking to manage their risks with the uncertainty that happens today on the market. So there is no such thing as newbies license. There is no such thing as starter's license. This is the license for specific business, for specific customers that solve specific problems. And you'll be like, okay, but we do have right now the carousel license. Can we just stay with that? Can we just like update and we'll be fine? Well, it depends. It also depends. Do you need that Aventador, I was speaking in the beginning of this video or it will actually not make it good for your business because you want to go somewhere in mountains and now you're taking that Lamborghini going there, now it breaks. You just spent, you know, €700,000 on a car, but now you have to go and get to the service, right? So you will be like, okay, we don't need this license anymore because it's completely new product. You have to understand that it's not just the price change, it's the product change, the framework change. Now it's going to be a completely new product. So that's why Anjuana is there with a very strong value proposition, just like the Curacao license had before. And how long does it take to get it right? So the entire process usually takes around two months. So I have to be very transparent with you because you will see that like something like three weeks or four weeks and you will probably, you know, miscalculate the time to the market because we first need the company. You cannot get the license on your own name or your brother's name. We need a company and the company is a planning process. So we have to understand where you're from, what the citizenship is, want to understand and want to offer you the best options. One, it takes time to get the formation done. So we have like around two to four weeks to get the company done, two weeks to get all the paperwork required.
To then apply for the license.
So technically, I mean practically it takes two months to get the license. Then we speak about the entire structure of the company because you have to cash flow somehow. And license itself doesn't solve the problem. It's the proper structure of the companies below that actually solve the problem. And the payment system providers that then evaluate your entire structure, they do their own compliance and then they actually allow you to go and to use their solution and to accept payments from the market. Same with the banks. You have to understand that the banks require specific structure for that. So as we are working on the license, we are working on the structure. So the time before you actually get the license and time before you get the working structure to connect payment system providers can empty banking accounts. It requires two months. So if you wanted to start tomorrow, if you want to start yesterday, and you're like, okay, license is a piece of cake and you know, it's nothing to get it done. No, it's not that you have to calculate, you know, it's your expenditure. Those are some operational expenses you have to pay, probably salaries. So if you are planning to launch somewhere in two, three months, in a month, yesterday, you have to be working on the license right now, today, in this entire thing, there's no time what to wait. Don't believe these stories that you can get the license in a week or in two weeks. This is not like, you know, go, you know, the, you know, it's not like just going after the milk to the Walmart where you just go and pick anyone, pick any choice and then walk out of that. It's actually like buying, you know, a super expensive exclusive car. We have to evaluation whether or not you can get the license. License, we have to qualify you for that. So there are chances that you may never get the license. I spoke to gentleman yesterday and unfortunately he wasn't a good fit for the license because of several things, you know, but he actually already negotiated his deal with the platform and with everything money on the table, ready to go. So now we have to look for other solutions for him. So it's not just like walking to the park, you know, this is like buying a very expensive car. You have to wait for it, you have to order it, you have to qualify, you have to put money on the table. If you go to some dealership and you're like, okay, I want to buy this car, but I want to have this door done in a yellow color, they will tell you, okay, wait for the next two months, but first show the money right so this is just the same with the license. You have to understand the timings and it's not less than two months. And I want to emphasize that because, you know, there are many people that come to us, you know, after six or seven months of not successful attempts to get the license and they're like, max, we have a team, we have salaries to pay, we have the product ready, we have everything. We are ready to start, you know, and we just like keep burning money and we cannot start cash flowing. This is very important to actually distinguish who you can trust. Okay?
If people offer you something too good to be true, it probably is too good to be true. The, this is the point. And just like use your brain, okay? Use the imitation, you're about to get the license. License, it's not, you know, a game or something like that. It's a license where there is an authority that basically evaluates you, that needs the complete package of documents, that will get back with the questions, that will want to understand your business model, that we want to understand your long term vision. What are you going to do? What are your next plans, what is the team, what is the budget, Everything. So, and after that you get the license. So it's more like, you know, it's really a business question, right? So if you are a business person, you understand that like, listen, we have to do some business planning here. We have to understand how long it will take. Otherwise, you know, the budget is just like, we can burn through it pretty, pretty fast.
And if you're a startup, what do you need besides the license? You need the platform, right? So you need a platform with the back end, you need the platform with the front end. You have to have, you know, good solid partners you can trust with because the power platform will be your partners. It's like extension of your team. You basically run your business from the platform. So promotions, tournaments, bonuses, dashboard, kyc, risk management, payment system providers, everything goes to the platform from the platform. From the back end, it should go to the front end. This thing should be scalable, this thing should be a part of your team. So people are of the utmost case when you choose the platform. Now the second thing is the software providers, games and platforms, especially Turnkey, will probably come up with our own aggregation services and they will tell you, okay, this is the price for the games, this is the revenue share that you have to pay, this is the setup fee. Now are you good? If you're good, we go. The next step is to connect all the other software providers that you may need. Maybe you want something from risk management, maybe the CRM, right? Depending on the platform, the next step is payment system providers.
So as soon as we move with the license, if you're a startup, you have to also move with the platform. Because if we are done with the license, this is the moment where you can connect payment system providers, open bank accounts, and if the platform is not there, then why do you need payment system providers in the first place? So payment system provider is the last step. Then you test the payment system providers out. You test the entire thing. You are happy with your team about everything. You are not. It probably needs some tweaking the entire system. And now you are good to drive traffic and make some money. So this is really an essential video for the market, I guess, right now for you gentlemen to understand what the angel license is about. It's not about competing with Maltese license, Isle of man license, every license is amazing. So Maltese and Isle of man and Kanawagi and the new Curacao probably, I hope, will not, you know, suck completely, especially in the beginning. But currently, because of tons of uncertainty, we just cannot recommend the Curacao because we value relationships with clients. And if you see, like, okay, the curacao is 100% the choice, then probably people are lying. You know, there are people that just want to take your money and then five months later get back to you and say, the license was rejected, it's impossible to get the license. So there are many things, but there is one thing that they do not understand and they do not count in your time, right? So your time matters a lot. And it's the biggest asset that you have, because time in your sense, in your case, is also the money as you have to pay for the platform, for other things, for salaries and everything else. All right, I hope it was clear about the NG1 license. It's taking its own place right now, growing and just like speeding up as crazy. We have done tons of Anjou on licenses already and we plan to get more even this year, because now it's just January.
And I hope to see you soon, everyone in London and see you in my next video. Bye.
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