How To Obtain A Gambling License In South Africa
FSP License In terms of the Financial Advisors and Intermediary Services (FAIS) Act, all South African financial service advisors are required by law to obtain a license to practise from the Financial Services Board (FSB). The FSB ensures that these advisors have sufficient knowledge and are 'fit-and-proper' to dispense advice. Mandate The mandate of the Free State Gambling and Liquor Authority (FSGLA) it is to regulate both the Gambling and Liquor industries through issuing of licenses, monitoring and regulating, and reporting to the responsible member on all gambling and Liquor matters.
Getting a Malta betting license
Malta is a beautiful Mediterranean island state. The best time to visit it is autumn, when there is no sultry heat and the water temperature is still comfortable for swimming. However, to obtain a license, you will not have to fly—or sail by ferry from Sicily— to Malta at all, since we will take all the trouble. According to MGA (Malta Gaming Authority) rules, bookmaking activities require a B2C license. In order to get it, you must provide the following documents:
- an application in English;
- copies of company’s beneficial owners’ personal documents;
- a brief description of your professional background, criminal record, corporate charter, business plan and some other documents.
A license holder is obliged to pay an annual license fee of €25,000. After receiving a registration fee and verifying the submitted documents, MGA makes a decision on issuing a betting license. Generally, the whole process takes about 2 months.
As a result, you will be issued a B2C license, which allows you to conduct betting activities in all countries where gambling is not prohibited.
Getting a Curacao betting license
A company that is planning to receive sports bets via the Internet may also obtain a Curacao license, which is considered a convenient alternative to Malta’s one. With the Curacao betting license, one can enjoy a number of advantages:
- almost every bank will willingly open you a Merchant Account for conducting transactions and players’ deposits/withdrawals;
- sportsbook software providers freely cooperate with Curacao license holders;
- Curacao’s corporate tax rate is 22%; however, so-called E-Zone companies are completely tax-exempt. GamingLicensing specialists will provide you professional assistance in registering your company in Curacao’s E-Zone.
In order to successfully get a license, you must meet several technical requirements, such as storing backup information about clients and transactions on Curacao’s soil (other databases may be physically located anywhere), getting your software certified by an audit company and having specific website sections (Terms and Conditions, Refund Policy, etc.) and a clickable icon confirming licensing.
Summary
Hopefully, a future sportsbook operator now has no doubts about the necessity of obtaining a license and working within the law. As of today, the best and the most cost-efficient option is obtaining approval documents from Malta or Curacao.
Online Betting License Cost
To get hold of an online betting license and diversify your online casino even further, GamingLicensing offers you help with the following price tags:
| Company Registration | EUR 7,900 |
|---|---|
| Obtaining an Online Betting Gambling License | EUR 9,000 |
| Registration of the domain in the E-ZONE | EUR 10+ depending on the domain name and the domain zone |
| Expert Consultation and Support | FREE of Charge |
FAQ
What betting licenses can GamingLicensing help me obtain?
GamingLicensing can help you get the prestigious Malta Gambling Authority license and the Curacao e-Gaming license. You won’t have to deal with annoying bureaucratic procedures — our experts will do that for you.
What do I need for the Malta Gambling Authority betting license?
To run a successful online betting site with a betting license from the Malta Gambling Authority, you need to obtain the so-called B2C license. To do that, you need to submit an application in English, the copies of your company’s beneficial owners’ personal documents, a brief description of your professional background, criminal record, corporate charter, business plan, and some other documents.
How much does the Malta Gambling Authority betting license cost and how much time does the process take?
The annual license fee is set at €25,000, and the whole process is finished in around two months.
What should I do to obtain the Curacao betting license and what are the advantages?
In order to obtain the Curacao betting license, your servers need to be physically located in Curacao and your software needs to be certified by an auditing company. Also, you will need to have specific sections visibly displayed, such as Terms and Conditions and Refund Policy.
Note that with the Curacao betting license, all banks will open merchant accounts for your transactions and players’ deposits and withdrawals. Also, all sportsbook software will cooperate with Curacao license holders. On top of that, doing business from the Curacao E-Zone means that your business will be exempt from taxation.
Games are the source of recreational activities that engage some sort of skill of the player which may be physical strength or mental capabilities. Created for our entertainment the rules and conditions of play may vary for each game. In order to increase the thrill in the game, they may be played for real money. It is at this stage that they are often confused with gambling activities. However, The Apex Court recognizes the games where success depends on substantial degree of skill and despite the existence of an element of chance there is requirement of application of skill, are not 'gambling'1:
LEGISLATION GOVERNING GAME OF SKILL
Although betting/ gambling remain the matters of exclusive jurisdiction of the applicable State legislature, there are hardly any state laws which clearly classify a game to be a game of skill. With a pragmatic approach to deal with the difficulties posed by the lack of appropriate regulation, the Government of Nagaland has passed the Nagaland Prohibition of Gambling and Promotion of Online Games of Skill Act, 2015 (hereinafter referred to as 'Nagaland Act') and Rules, 2016 (hereinafter referred to as 'Rules'). The license issued under the Nagaland Act and Rules ensure the fact that a particular online game is a game of skill and not an act of gambling.
APPLICABILITY
The license issued in accordance to the Nagaland Act and Rules is valid for the operation of the game throughout India except in the states expressly prohibiting betting/ wagering of any sort i.e. Assam, Odisha, Telangana and Gujrat.
OBLIGATIONS FOR THE APPLICANT
The Applicant willing to obtain the license for game of skill are required to fulfill the following obligations as per the Nagaland Act and Rules namely:
- Applicants should have no criminal history;
- Controlling stake of the applicant should be in India;
- Operations of the applicant including technology support platforms, software serves should remain within the territorial limits of India;
- Applicant should submit the application to the Director of State lotteries, Nagaland along with the application fees of INR 50,000/-.
CONCLUSION
In the progressive view, the Nagaland Act and Rules accord legal protection to the games of skill being played with involvement of stakes, the Nagaland Act. It certainly entails advantages to the entrepreneurs involved in the business of gaming.
Footnote
1. State of Bombay v. RMD Chamarbaugwala [A.I.R., 1957 S.C. 699] - held by the Apex Court of India
For further information please contact at S.S Rana & Co. email: info@ssrana.in or call at (+91- 11 4012 3000). Our website can be accessed at www.ssrana.in
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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