Episode Transcript
[00:00:00] All right, so you ask, I answer your questions on the license in igaming business overall. So let's start. So with the first question, the first question is, how do I quickly start an online gambling business?
[00:00:15] So to quickly start an online gambling business, there is an only way to do that. So you would have to go with solutions that already exist on the market. So if you plan to build something in some game or maybe a platform, you have to understand that it's not a quick entrance to the market because it will take you a couple years to build something, then it will take you time to get certification and the license and everything you need to actually get to the market to start making money. So the only way you can fastly. What was the question? So how do I quickly start an online gambling business? Right. The only way to do that is to use something that already exists on the market, and that's fine. So that's the way the business works. So to do that fast, you have to understand that there are certain things that you cannot somehow throw away.
[00:01:15] So there are processes in place that you have to work on to get to the market. So the first is you have to get the license. That's it. The second, you have to make sure that your structure is proper just so you can connect payment system providers, so you can, well, optimize taxes so you can work and you can compete with other businesses that work in the same market. Right. The third thing is that you need to open a banking account where you will accept the cash. And this is a high risk business that everyone wants to work with. The high risk businesses, you cannot go to bank of America, to Lloyd's, to Barclays, whatever, and open a banking account there. They just don't work with this business.
[00:01:59] So you have to still open a banking account. Then you have to connect payment system providers because you want to accept cash. So all this takes time. And these steps, well, you cannot avoid these steps. You have to do that.
[00:02:11] So what I did with my team, we have created the small file, so a template with the roadmap that will explain you how long it takes to get the carousel license, how long will it take to structure your company properly, how long will it take to open a banking account and payment system providers? Some of these processes you can do simultaneously, some of them not. So there will be a link below this video. You can download that file and you can check yourself. Okay, so, so the license will take me in incorporation two months, then I can do Cypress simultaneously. I can go and open a banking account after that and connect payment system providers somewhere at the same time, right? So all that will take me like three, four months tops. And now I can start making money. So during that time, while you do all these things that you just described, you have to choose the platform that you will use. So either you launch a sports book, maybe you're launching a casino games or anything else, you have to have a platform. So the platform will provide you the back office, it will provide you the KYC bonus system, everything, right? So you are choosing the platform.
[00:03:24] Now you have that platform and you do this simultaneously, not waiting for three, four months when you will get the license and the bank.
[00:03:34] And now you have to choose software providers. So the smart way to do that, if you launch for example games, then you choose an aggregator. And aggregator will allow you to connect multiple games at the same time. So you can connect 100, 200, 500 games. You don't have to go and run around signing all the agreements with everyone and each of them. So you can do this in one place, you can connect that, then you can call your agent and say, listen, I want games from Evolution Gaming and bang, you have your Evolution Gaming games there, live studios, whatever, right? So really good. Now if you do all that just I described and this is the fastest way to get to your own business as you are using everything that is on the market.
[00:04:19] And now you are investing in marketing and you are investing in design and branding, right? So when you have a platform, you have a games, now you have to think, okay, how my casino will look like, what is the branding is going to be like, what it's about.
[00:04:35] So you do all that simultaneously before you have that PSP connected. So when you have that PSP connected, you want to start accepting cash.
[00:04:44] So the answer the fastest way is probably three, four months and you can have cash flow, you can start cash flowing after that, right?
[00:04:54] So the second question, the second question is, are online gambling businesses required to restrict users from countries that prohibit online gambling? So this is really interesting one because it's not that simple. With the word of licensing, there is no, well, pick this license and you can work anywhere. There is a world of countries where the online gambling business is well regulated. This is usually the European Union countries in the US where they do actually have their own local license.
[00:05:31] The local license, the one you can buy, you can afford, which is really important. And they also have regulations in place where they will drag the market and they will get rid of every business that doesn't have any license worth. They will make the Life of that business miserable, really complicated. Now with this being said, that's one the second type of businesses and the second type of countries that you have is where the online gambling business is not allowed. So you cannot run business in certain Muslim countries, it's just against the law, right? But at the same time, certain licenses do not allow nor restrict you from doing businesses in these countries.
[00:06:16] Now the third type of countries is where the law doesn't allow nor restrict. They don't have any regulations, it's unregulated market. Probably they have some laws on land based casinos, but they don't have any laws on online gaming casinos. So the world of licensing, the world of how everything works is really different and it's consistently and continuously changing. So what we did, we created recently a file for UE to download that file from. I will leave you three pages. So it's the Curacao license, Kanawaki and Masa. You can go to any of these pages and you can download a file where you will see all the countries that you should stay away from if you don't want to get in trouble. Let's say if you have a carousel license or the Kanawaki or the Mata, and we divide all these countries in three different groups so you can go and check which one works for you and you can very quickly understand where you should stay away from if you have any of these licenses. Let's move to the third one.
[00:07:27] So the third one is which is the best country to open an online gambling company regarding regulation, taxes and bureaucracy.
[00:07:36] So when you are getting a license to open an online gambling business, you need a license first. So the way four main licenses work is that three of them, well, they require local presence.
[00:07:49] So the Maltese license and Isle of Man actually requires local substance.
[00:07:55] So you have to have someone there and an office there.
[00:07:59] In some cases, when it comes down to Curacao, you still have to incorporate with Curacao. So Curacao, you have to incorporate with Curacao, you have to have a company in Curacao. So you do not choose your jurisdiction, you do not choose a country, right? With Isle of Man in Malta, it's the same.
[00:08:17] So probably that answers your question at some point. The only license that have their own, they don't have their own corporate services, the Kanavaki. So you can choose what country works best for you. So please go and consult with your accountant or CPA the way you want to call them or her and ask this question, where is it fine for me to open a business? Because it depends on where you live. If you live in European Union or in the US then you will face some consequences these here. If you live here then you will find out that, well certain offshore jurisdictions are not welcome here. You will have problems receiving money from these jurisdictions. No banks want to work with these jurisdictions as they will get penalized. These jurisdictions were used by drug dealers and warlords and I mean who knows by whom.
[00:09:10] So this entire financial structure doesn't treat this jurisdiction well. So go ask your accountant and I hope you will find you know the answer that basically satisfies you. But as I said Isle of Man, Malta, Curacao, they all require local incorporation within these countries, respective countries.
[00:09:34] So I was wondering if Curacao gaming license requires kyc. Yeah, it does. So all normal decent licenses require kyc. It just the depth of how you know far they will go to actually check your guts in parents and probably your family members.
[00:09:57] This is of course different with every license. So Maltese license takes a really hard approach. They want to make sure that you are fine. You don't have, you know, any bad blood around you. You have really team of professionals and they will do KYC not just on you, they will do KYC on every key member that you have. And if you are interested to learn more about Maltese license then I created a post. Go and check that post and that video and you will learn more, much more.
[00:10:28] So with the Curacao yes, you have to have to go through KYC process. You have to prove your identity, you have to prove that you do not have any criminal records, that you are fine.
[00:10:40] You have to have a proof of funds, you have to go through proof of address.
[00:10:46] So all these things are required. I don't know why do you ask this question? If you open a banking account these days they require kyc.
[00:10:56] So it's just a normal process. Everyone you know asks these days. Especially if you are going to take money from other people. Especially if you're running a high risk business.
[00:11:07] Especially if that's a casino or gambling business. I mean they have to know who they trust their money to in order for you to make money. So of course that they want to know. Otherwise you know all the gambling commissions and all the master providers, they will just get into trouble if they do not do that.
[00:11:26] So that's it. All four questions. Thank you for your questions. If you have more questions, send me more. I will leave my number below this video. Send me a message if you have more questions. If you are think, if you think that you are ready for the license. Then go ahead. Let's have a chat.
[00:11:43] We'll be happy to help you to get the license and see you in my next video. Bye.
