Regulatory landscape of iGaming in the world

The iGaming industry stirs up many debates and different opinions worldwide, but one thing is certain: it has been and will continue to be a part of our lives. The development of online gaming portals during pandemic reached unprecedented success, with growth in some countries increasing several-fold. Investors are turning their attention to gambling, and the number of startups today is growing like never before.

At the same time, online gambling is not legal everywhere, and creating gaming websites is not possible in every country. Some have their own licenses, and only when obtained, you can provide service to local players. Understanding all these market nuances can be quite challenging, as each has its own requirements and tax burdens. Therefore, many operators choose international licenses like those from Curacao and start their journey in iGaming with them. Only after establishing their brand, they consider transition to locally applicable licenses.

Today, let's look at markets where iGaming is legal and how it is regulated in more detail.

Brazil

A newcomer to iGaming regulation, but a very promising gambling market, Brazil has already generated a lot of noise in the public space. Until recently, gambling was banned in the country, or rather, there was no clear legal framework to regulate operators' activities. However, large gambling population was in the country for sure. This is why Brazil attracted a huge number of offshore operators who freely offered betting services to population until the beginning of 2024.

Due to the country's great love for sports, betting became popular, but slots and crash games also found their users. Availability of PIX payment method, which is the main one in the country, played a major role in capturing the region, and for a long time, it was very favorable for online casino operators. Possibility of attracting a large number of players through local influencers and famous figures also did drove the market forward. All this allowed many brands to build such a level of recognition and brand strength in the country that they decided to apply for a Brazilian license as soon as it became available. Currently, there is an active submission of applications for the local license, and only licensed operators will soon have access to payment methods and be able to host their websites in Brazil.

The requirements for future licensed operators can be called standard:

• Local customer support and office, as well as board members;
• Obligation to undergo audits and pay taxes;
• Fair play policy for players, KYC, and compliance with AML rules.
• The cost of the license is 30 million BRL, which is a little over five million dollars.

United Kingdom

The UK is considered one of the pioneers in licensing online casinos, and its legislation is indeed one of the most detailed and comprehensive in this regard. The UKGC (UK Gambling Commission) is the regulatory body that issues licenses, constantly monitors their activities, and imposes restrictions. In the UK, there is strict regulation of responsible gambling, requirements for advertising and promoting online casinos, as well as a high tax rate. According to statistical data from the UKGC, 48% of Britons gamble, which is almost half of the population.

Major brands in the market, such as Ladbrokers and Coral, are owned by the company Entain and are very popular among local bettors. Opening an online casino in the UK is not easy and requires significant investment due to the complexity of licensing and high revenue per player thus competition.

The situation with offshore gambling has become more acute in recent years, as growing restrictions on both operators and players have led to the search for alternatives. And there have always been those who want to make money on a large and very gambling-oriented market. The fight against illegal operators in the UK is very serious, but it still cannot ensure their absence in the internet space. Although players understand that they are less protected in illegal projects, more interesting bonus offers and unimpeded payouts without taxes attract the audience.

Germany

German gambling regulator, Glücksspielstaatsvertrag, is known for its strictness towards operators. Germans take the issue of responsible gambling and advertising very seriously. In Germany, licensed online casino operators must provide players with functionality to limit their gaming by the total amount of bets and losses per day/month, so that player never exceed gambling expenses that they can afford. Additionally, there are many requirements for advertising, making high-quality and law-abiding advertisement not easy to create. All these restrictions help protect players but do not take into account operators’ interest.

The rather complex tax system, which considers not only the level of online casino revenues but also place of registration, offered slots and games, combined with licensing fee and VAT, forms a large sum.

Due to this, the number of offshore offers in the country is constantly increasing, which the authorities cannot keep up with blocking. High taxes for operators do not attract new businesses to obtain a local license, and therefore many choose to operate in the gray zone. At the same time, players are interested in finding more favorable offers without restrictions, and of course, they find them in the form of Curacao or Anjouan licensed brands. But since players are well aware of position of offshore casinos in the country, they often take advantage of this and engage in various fraud schemes, bonus hunting, and requesting non-legitimate chargebacks. This increases the risks for new operators coming to the market without a local license.

Latvia

This small country is a hub for iGaming development but also a stable local market for online and offline casinos. The National Lottery of Latvia, offline halls, and online projects enjoy great success.

At the same time, international projects are not very interested in this market, as it is characterized by a small population and strong local brands. Additionally, operators pay large taxes and fees, and the cost of license itself exceeds 1 million euros, which often seems like an excessive price for a small European market. Gambling was regulated in 2006, and since then, several dozen active operators have emerged in the country, offering various types of gambling, including lotteries, roulette, slots, sports betting, and sweepstakes.

The regulation of online casinos in Latvia was a big step for country and provided the opportunity to fund state budget and control gambling activity.

Georgia

Tourist country of the CIS space, Georgia, recently regulated online gambling, creating a good environment for local businesses and tourists who can visit land-based casinos. Online operators in Georgia also exist, and overall, gambling in the country is very popular.

In 2024, Georgia made significant changes to its legislation, which were likely prompted by the shaky situation in Curacao. Georgia decided to create an oasis of offshore gambling within its borders, allowing locally licensed operators to accept players from abroad. Thus, by obtaining a license in Georgia, operator can serve players worldwide, taking into account local licenses and restrictions of each country separately. This is the same principle under which the Curacao license successfully operated, and now Anjouan license is gaining popularity. However, the Georgian offshore option costs around 2 million dollars, while Anjouan is up to 30 thousand euros, including legal expenses. It is not surprising that this new permitting document has not generated much interest, and the market remains primarily within the framework of local operations.

Although many startups prefer a more functional licensing document that allows them to operate in several countries at once, like Anjouan, most countries prefer to move away from this approach. The reason for this is clear — each country wants to maximize the benefits from gambling and receive tax revenues. Gambling will not disappear, and the only way to manage it is regulation. At the same time, many countries are focused on strengthening control over operators and create very discriminatory laws, not taking into account business purposes of online gambling. This results in the opposite effect: rising number of offshore brands and decrease in profits for legal operators. While large online casinos express concern about this issue and are generally ready to cooperate with authorities to create fairer legislation, there have not yet been any substantial, industry-changing steps in this direction.

If you are looking to launch an online casino and have decided to choose Anjouan license, contact us for help in obtaining it, and we will provide all the necessary support for your project turnkey. Getting an Anjouan license today is simple and can be done in the shortest time, which means your business idea will not have to wait and depend on bureaucratic issues. With us, you can launch within a month. Additionally, we will help you to connect payment systems and open IBAN account for you, which is a full-fledged structure for start of your operation.