Casino Licenses

Thomas Andreas

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What are considered the top casino licenses and what are consider 2nd and 3rd tier licenses.

As I understood it Malta is a top license to have but what are the other bad and good ones?
 

BetReels

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UK, Malta, Gibraltar are the primary "good ones" while Curacao, Costa Rica are flagged as worthless. That said, casinos can be great or rogue with any license - it really depends on the owners and their cashflow.

With more and more countries regulating, it won't be long before casinos will need to have a license in every market that offers licenses.
 

Biti

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I would say that the license of the country you're playing from is the most worth. Licenses have no value outside the countries they're meant for.

A UK license has no value if you're playing from, let's say, Spain or Hungary.

If you're playing from a grey or black market country, Malta is the best. Way behind that licenses like Gibraltar. Crap from Curacao and Costa Rica can't even be called a license and is complete worthless.
 

AussieDave

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while Curacao, Costa Rica are flagged as worthless.

Costa Rica is less than worthless - it's not even a gaming license. Instead, it's nothing more than a permit to operate a business on Costa Rica soil. It's an identical license given to a Costa Rican Butcher Shop, Baker and Candle Stick Maker etc., etc.

Edit:
There's also the Kahnawake Gaming Commission. Once compared to that of holding a Curacao gaming license. Worse, back in circa 2008, it was embroiled in a huge poker scandal scam. When that all fizzled out, Kahnawake employed the service of Micki Oster, a well known and respected veteran of the online gaming industry (I'd known Micki since 2000 and she was rock solid honest). Micki was in charge of player disputes, and did a mighty fine job in her tenure, ruling many times in favour of players.
(current license holders: gamingcommission.ca/interactiveOp.htm).

http://www.ottawalife.com/article/h...curity-to-major-player-in-online-gambling?c=9
The Kahnawake Gaming Commission is well-known to many online gamblers and sports bettors the world over. The independent regulatory body issues licenses to a multitude of top level and lower level online casinos, sportsbooks, and online poker sites. It also regulates their activities, ensuring strict adherence to their code of conduct and practice. The Kahnawake Gaming Commission also oversees a number of brick and mortar poker rooms all situated within their own territory.


The Kahnawake Gaming Commission was established in 1996, making it one of the oldest online and land-based casino regulatory bodies still operating today. The commission was established after the Kahnawake Gaming Law had been enacted by the Mohawk Council of Kahnawake. Just three years later the council extended their regulatory activities to including interactive (online) gaming in 1999, shortly after the first digital casinos went online in the mid-nineties.

Footnote: AFAIK, Micki Oster is no longer employed by KGC. As such, I'm not sure who handles player disputes. The last stats on that topic are dated Jan 01 to Dec 31 2015 - gamingcommission.ca/news/pr01252016b.pdf
 
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NDG

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Malta is probably the best gaming license for players in countries where there is no local licensing of online casinos.
I would say the casinos that are licensed in their own jurisdiction, like in the UK, US states, Canadian provinces, etc..
are the 1st tier. The second tier would probably be casinos that are licensed in Malta and the third tier would probably
be all of the rest with examples like Curacao, Panama, St. Kitts, Comoros and other US-friendly licensing jurisdictions.
 
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AussieDave

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the rest with examples like Curacao, Panama, St. Kitts, Costa Rica and other US-friendly licensing jurisdictions.

Let me reiterating, Costa Rica does NOT issue interactive gaming licenses. Costa Rica is NOT a licensing jurisdiction.
 

NDG

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You are right. Costa Rica is just a normal business license. There are no gaming regulations at all.
There is nothing to protect the players. You are simply gambling at a business within Costa Rica.
i removed Costa Rica from my previous post in order to avoid any confusion.
 

ARZ

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If I would start an online casino, I would surely choose Maltese license. As it was said, it is the best for grey markets, and there is still plenty of them. Local licenses depends on exact jurisdiction conditions.
 

Biti

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Curacao basically isn't a gambling license either.
 

Zuga

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Curacao basically isn't a gambling license either.

I wouldnt call it absolutely worthless but its surely close. Granted there are some good casinos holding Curacao license, but theres lot more shady casinos using it. Especially if we are talking about rogue casinos with fake games. Curacao is their go to licensor.
 

KasinoKing

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I wouldnt call it absolutely worthless but its surely close. Granted there are some good casinos holding Curacao license, but theres lot more shady casinos using it. Especially if we are talking about rogue casinos with fake games. Curacao is their go to licensor.
IMPO all licences are almost meaningless: Their are some GREAT casinos with a Curacao license, and there are some CRAP casinos with a UK license.

OK, so the top ones do offer some player protection, but it does not guarantee that it is a good casino to play at.

KK
 

Thomas Andreas

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Hmm, lets say you have a UK casino (only active in UK market) it wouldn't make any sense then to obtain a Maltese License as well, right?
 

Biti

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That is true.

A Maltese license makes just sense if you're operating in black/grey markets or if Malta is your focus market.

I suppose UK accepts just games of UK licensed software providers, otherwise, other licenses could be useful.
 

betizen

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I have always wonder the practicality of licenses from the players perspective. Do you guys know cases where players went against the license of rouge casinos? Do you know the steps a players who thinks worth the trouble and the legal fee has to make in order to act? Let’s say in the cases of the most prominent licenses, Malta, UK, Curaçao (here in latam at least).
 

Nerdybet

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I have always wonder the practicality of licenses from the players perspective. Do you guys know cases where players went against the license of rouge casinos? Do you know the steps a players who thinks worth the trouble and the legal fee has to make in order to act? Let’s say in the cases of the most prominent licenses, Malta, UK, Curaçao (here in latam at least).

Back in the day I used to work for a big operator/affiliate based out of Malta. We had a few cases in which players would sue us in domestic court of their respective home countrie(s) to retrieve their money. All European courts ruled in our favor, but usually after lengthy appeals processes. The claimant would typically invoke a "negligence" statute, in which they asserted the casino operator should have prevented the players from depositing more money.

One famous case (not related to my former employer) involved a Norwegian named Bjarne Baasland. He sued the operators both in domestic and Australian court to retrieve some of the $ 15 million he'd lost. See the link below (you gotta replace the dots)

abc(dot)net(dot)au/news/2013-09-20/norwegian-gambler-loses-case-against-centrebet/4970062

The special thing about Malta is that EU rules dictate the free flow of goods and services across the borders of each member state (including EFTA jurisdictions). A gambling operator has no "nexus" in a country unless it operates an office or employs people directly within that jurisdiction. In the case of Mr. Baasland the Norwegian Supreme Court decided that accepting deposits in NOK was enough to create nexus within that country, but I think that's a really far stretch.
 

edgarf76

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UK, Malta, Gibraltar are the primary "good ones" while Curacao, Costa Rica are flagged as worthless. That said, casinos can be great or rogue with any license - it really depends on the owners and their cashflow.

With more and more countries regulating, it won't be long before casinos will need to have a license in every market that offers licenses.
I thought Costa Rica was worthless but Curacao was important?
 

betizen

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Back in the day I used to work for a big operator/affiliate based out of Malta. We had a few cases in which players would sue us in domestic court of their respective home countrie(s) to retrieve their money. All European courts ruled in our favor, but usually after lengthy appeals processes. The claimant would typically invoke a "negligence" statute, in which they asserted the casino operator should have prevented the players from depositing more money.

One famous case (not related to my former employer) involved a Norwegian named Bjarne Baasland. He sued the operators both in domestic and Australian court to retrieve some of the $ 15 million he'd lost. See the link below (you gotta replace the dots)

abc(dot)net(dot)au/news/2013-09-20/norwegian-gambler-loses-case-against-centrebet/4970062

The special thing about Malta is that EU rules dictate the free flow of goods and services across the borders of each member state (including EFTA jurisdictions). A gambling operator has no "nexus" in a country unless it operates an office or employs people directly within that jurisdiction. In the case of Mr. Baasland the Norwegian Supreme Court decided that accepting deposits in NOK was enough to create nexus within that country, but I think that's a really far stretch.
That is very interesting. For sure that looks like a very special situation. I am trying to figure out (in order to provide accurate information to my users) why (some) casinos are so touchy about licenses and which ones to use specially in unregulated markets when it’s so damn unlikely that any player will ever first file and then win a case against them.
Does a player with a fair case against a casino hace a chance supposing he is willing to spend the money and time? If not, what role do you think are licenses really playing nowadays in the industry? It looks to me that is just a formality with no real consequences...
 

Nerdybet

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That is very interesting. For sure that looks like a very special situation. I am trying to figure out (in order to provide accurate information to my users) why (some) casinos are so touchy about licenses and which ones to use specially in unregulated markets when it’s so damn unlikely that any player will ever first file and then win a case against them.
Does a player with a fair case against a casino hace a chance supposing he is willing to spend the money and time? If not, what role do you think are licenses really playing nowadays in the industry? It looks to me that is just a formality with no real consequences...
As other users have pointed out there is a big difference between each license. A Maltese license is the gold standard in my opinion, while Curacao, Costa Rica etc. are basically worthless.

High grade licenses are crucial to any online casino for 4 main reasons:

1. No payment processor will accept deposits from black label casinos through Visa, MC etc. Same goes for Neteller, Skrill and other third parties. You'll find exceptions, but they usually get shut down within 6 months to a year,
2. Governments can (and often will) prosecute you like a dog if you solicit/accept deposits from their residents without proper licensing. The United States is notorious for prosecuting black label operators, and one country I definitely wouldn't f** with.
3. If an online casino has a license with detailed terms and regulations, they will be shielded from lawsuits such as the one I listed above.
4. Many game providers (NetEnt, Microgaming etc) will flat out refuse to lease their games to black label casinos that lack proper licensing. As a result you end up with s*** software, which ruins the bottom line.

It may be unlikely that a player will file suit against a rogue online casino, but legal protection against foreign governments is much more important in my opinion. You don't want to end up like David Carruthers & Co, who were arrested and persecuted in US courts.
 

betizen

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As other users have pointed out there is a big difference between each license. A Maltese license is the gold standard in my opinion, while Curacao, Costa Rica etc. are basically worthless.

High grade licenses are crucial to any online casino for 4 main reasons:

1. No payment processor will accept deposits from black label casinos through Visa, MC etc. Same goes for Neteller, Skrill and other third parties. You'll find exceptions, but they usually get shut down within 6 months to a year,
2. Governments can (and often will) prosecute you like a dog if you solicit/accept deposits from their residents without proper licensing. The United States is notorious for prosecuting black label operators, and one country I definitely wouldn't f** with.
3. If an online casino has a license with detailed terms and regulations, they will be shielded from lawsuits such as the one I listed above.
4. Many game providers (NetEnt, Microgaming etc) will flat out refuse to lease their games to black label casinos that lack proper licensing. As a result you end up with s*** software, which ruins the bottom line.

It may be unlikely that a player will file suit against a rogue online casino, but legal protection against foreign governments is much more important in my opinion. You don't want to end up like David Carruthers & Co, who were arrested and persecuted in US courts.

That was a very helpful insight @Nerdybet thanks a lot. Lot to consider when listing casinos in affiliate sites and recommending to players. I see two unfortunate things happening:
  1. There is a dangerous grey area, at least in Latam; many games providers *do not* refuse to operate with casinos with Curacao licenses. There are many cases i could point out. I think if game providers would be willing to be more strict about this, that would be a good bottleneck and a good way to filter casinos out. Of course they do not want to loose some of the profits involved and i do undestand that there might be fair casinos even with those type of licenses.
  2. What gives a general idea of how underdeveloped Latam market is regarding regulations is that many europeans operators disembarking in Latam, are willing to change their licenses for their latam products in order to operate "more freely". Which is shameful in my opinion.
  3. It would be really good for the players perspective if affiliate sites clearly show which casinos are dangerous because of their licenses. Even if the aff. program is good in the short term. It does not always happend. As Seth Godin points out, the long-term is hard for humans.
 

eplclub

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hi i am new here ,would like to ask if we as a affiliate can we advertise on adwords?? and do we need a license provided from those company so that we can advertise on adwords??
 
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