Keeping your online gambling license in good shape | Yogonet International
By Ron Mendelson, Fast Offshore Founding Partner

Keeping your online gambling license in good shape

The columnist explains "how to ensure that you keep your online gambling license in good shape and the licensing authorities happy."

Ron Mendelson is the Director of Costa-Rica based International Business & Corporate Services consultancy firm, Fast Offshore. With over 24 years of real-world experience in iGaming Licensing and Payments, Regulatory Compliance, Tax-Efficient Corporate Structuring, Incubator and other Hedge Fund Licenses, Blockchain and Cryptocurrency related services, he advises a number of international clients on their business needs in the Americas, Europe, and beyond.

2020-08-19
Costa Rica
Reading time 3:03 min
The expert provides customer service commandments to stay on top of that area, and he recommends keeping a sound corporate structure, making sure to pay all fees and give customers a fair deal, in line with local laws.

If you are operating an online gambling platform, the first thing you need to do is to get a license in the jurisdiction you wish to operate from. This in itself is a process that requires submission of documents, the satisfaction of various requirements, and payment of a fee to the local authorities. But once you have it, you need to make sure that you keep it.

If you aren’t sure how to maintain your license and ensure that you are in-line with all its requirements, this is the guide for you. In this article, we will discuss how to ensure that you keep your online gambling license in good shape and the licensing authorities happy.

Get licensed

As mentioned above, first and foremost you need to make sure you’re licensed in the first place. No gambling operator should be conducting any activity without having the necessary gaming license in place. It’s not enough to just have a license however, you need to make sure you have the right one. Some jurisdictions offer different licenses depending on the kinds of games you will offer. Be sure that you have all of the necessary licenses to conduct the activities and offer the services that are a part of your business plan.

Stay on top of customer service

One of the most important obligations an online gambling company has is keeping customers happy. Meeting their needs, responding to questions and queries, and the swift management of the situation if things go wrong is key to retaining clients and staying on the right side of your regulator. Good customer service is so much more than having great games and a cool website, it’s about being there for your clients as and when they need you.

The 3 Customer Service Commandments

  • Always be available to respond to things when they go wrong, whenever they occur
  • Attend to complaints in a professional, polite, and prompt manner
  • Always be fair

Keep a sound corporate structure

The corporate structure behind your online gambling platform is just as important as the platform itself. When it comes to compliance, taxation, legal requirements, and licensing, you need to be sure you are operating honestly and efficiently. The regulatory authorities will likely assess your corporate structure including due diligence documents, Memorandum of Association, and your business plan, before granting or renewing your license.

You need to give key consideration to the description of business activities, directors, owners, and shareholders, annual filing obligations, and keeping all information up to date.

Pay your fees

Each jurisdiction that offers an online gambling license levies fees against it. These are often paid upon application and then on an annual basis. Some jurisdictions also require the payment of certain compliance or gaming taxes, so you need to make sure you’re up to date with those as well. 

Failing to pay any fees can result in a suspension of your license or a refusal to renew it. This will interrupt gameplay and revenue income until you are prepared to reactivate it or pay for a new one elsewhere.

Make sure you know what you need to pay and when you need to pay it or pay a corporate services provider to take care of that for you.

Always, Always, Always... Be fair

Do you have a certified random number generator? Are your games fair? Do you have fair play policies in place? You should have answered yes to all of these questions. Not only are these regulatory and legal requirements in most jurisdictions, but they are international industry best practices as well. Making sure you give your customers a fair deal, in line with local laws, is essential to the good standing of your license and your reputation.

Regulators and law enforcement authorities take breaches very seriously and non-compliance can result in a loss of license, fines, or even prosecution.

Get it taken care of

If all of this sounds like a lot of hard work, there is another way. Entrepreneurs in the iGaming world often do not have time to deal with licensing paperwork and remembering when fees are due. Instead, most will engage the services of a corporate services advisory with a specialty in iGaming and licensing. All corporate and licensing maintenance can then be handed over to them to be taken care of in a responsive and timely manner. 

This means less headache for the operator, and more time to focus on taking the business to the next level.

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