Why is it important for online casinos to be licensed? There are many reasons, and we will explore some of them from both the players’ and casinos’ standpoints. We will also explain some of the casino licenses available around the world and what areas they cover.
Casino Licensing
You wouldn’t bank with an unregulated bank. So why would you play at a casino that isn’t licensed? Both include handing your money and your personal information over to a third party and, as such, they should be treated with the same amount of caution.
Although there are many reasons for you to play at an online casino that is licensed, they generally revolve around one thing, and that is player safety. Playing at a licensed online casino offers you many assurances because the operator will be required to follow strict rules and regulations.
And from the side of the online casino, they’re likely to attract far more players if they’re licensed. Sure, it means purchasing a license and spending money implementing procedures and training staff,[1] but the investment is surely worth it.
How Playing at a Licensed Casino Keeps You Safe
As briefly touched upon, playing at a licensed online casino comes with many added benefits. In this section, we will take a look at some of them in greater detail.
Legality
While it’s not illegal for you to play at an unlicensed online casino, it is illegal for a casino to operate without a license. A gambling operator, in principle, always needs a license to offer its services.
However, the reality may look different in some cases. Many online casinos operate with no license at all, and in this case, we would advise extreme caution. If your money should go missing or a case of fraud is afoot, you, as a customer, would have no legal recourse. Always look at licenses (they should be available on the home page) or read customer reviews before opening an account.
Fair Gaming
Players should always have peace of mind when playing their favourite games online, or else what is the point of playing? After all, this is meant to be fun, with the added excitement of potentially winning some extra cash.
Licensed online casinos must have gaming software that meets the legal requirements, such as an RNG (random number generator) certificate. This proves that the games are fair and random and that the operator hasn’t rigged any of them in the house’s favour.
Data Security
Data security protects you as the customer as well as the casino. Licensed online platforms may use a few features, such as SSL encryption. This creates a secure pathway for data exchange, which ensures a player’s sensitive information is protected.
Firewalls protect a casino’s internal operations from external threats by acting as a barrier. It also monitors all traffic, both incoming and outgoing. Licensed casinos must undergo regular audits to ensure their security is up to scratch.
They may also use fraud detection[2] and prevention systems or two-factor authentication. Another way a player can see if a casino is licensed and trustworthy is by reading player reviews and looking at whether the payment options are reputable and widely used.
Responsible Gambling
Licensed casinos must comply with certain criteria that regulatory bodies will insist on. One of them is having a responsible gambling section on the casino’s website. This section aims to manage and recognise some of the risks that may be associated with gambling while ensuring that healthy and safe practices are being implemented.
There are tools that the casino can implement for players who may need some help, such as self-exclusion, placing limits on deposits, and providing resources and information that will help them maintain healthy gambling practices.
Benefits for a Casino to Hold a Licence
We’ve discussed how it benefits players to only interact with licensed casinos, but the truth is that it works both ways. There are many benefits for the operators as well. Let’s find out more below.
Reach Wider Audiences
Through built-up trust and good experiences by players, online casinos can reach a bigger demographic with no fear of backlash. Happy players will leave favourable and honest reviews that other potential players will come across, and marketing campaigns[3] can also include these testimonies.
Negotiate Terms With Payment Providers
A licensed casino has the upper hand when it comes to negotiating beneficial terms for payment options, like debit cards, e-wallets, mobile payments, and even bank transfers. The providers will be more willing to trust a licensed platform, and they may offer a range of benefits.
Some of these may include low or zero deposit and withdrawal fees and quick turnaround times for processing payments.
Partnering With the Best Software Developers
Game developers also have plenty of skin in the game and would not want to be associated with an online betting site that is untrustworthy. A license ensures the operator will be subject to regular audits and made to comply with any rules or regulations.
That means top-notch software providers will be far more willing to provide high-quality games and attach their names to these platforms. Games with excellent graphics and unique features will attract more players and spread the word, which is great news for the casino site.
Financial Benefits
At the end of the day, a casino is a business, and any business aims to make a profit. The only way it can do that is by attracting new players and retaining old ones. Some ways of doing this have been mentioned: bonuses and promotions that keep customers engaged, games that keep players entertained, and word of mouth that the site is reliable and trustworthy.
Trust is built by displaying the site’s license on the homepage for everyone to see, making sure their company information is correct, offering efficient and easily contactable customer support, and providing a range of payment methods. The casino also needs to show that all information exchanged is protected. This converts to long-term and steady profit, which any business would be happy about.
Licensing Jurisdictions
Different governments in different jurisdictions where gambling is legal are very strict about their regulations, which is where gambling commissions come in. They ensure online casinos adhere to the rules set out for them to operate while protecting both the operators and the players from criminal activities. Here are some of the most well-known licenses that online gaming companies may choose.
Curaćao Gaming Licence
This Dutch Caribbean license provider is one of the most popular and oldest licensing jurisdictions worldwide. It currently issues licenses for game providers and online sites that deal directly with players, as well as accreditation for a host of other online gambling activities.
Curaćao[4] has international recognition and covers a host of international territories. All operators need to do is register their company while on the island, meet with the Gaming Board and prove their regulations are up to scratch when it comes to money laundering and terrorist financing.
UK Gaming Licence
One of the biggest markets in online gambling is served by this iGaming license, issued by the United Kingdom Gambling Commission (UKGC), a body that was born out of the UK Gambling Act of 2005. It covers the UK and many other international markets.
The UKGC has a regulatory framework that is vast and known for protecting consumers, as well as promoting responsible gambling. This means that any online operator who has a UKGC license is one the industry recognises as being credible and trustworthy.
Malta Gaming Licence
Malta is the capital of the online gambling licensing world, so it’s safe to say it is the gold standard when it comes to any license issued by the Malta Gaming Authority. This is because the MGA has regulatory requirements that are incredibly strict for online gambling operators.
If a site wants international recognition and to reach a wide audience, this is the license to apply for. Since Malta is part of the EU, it also covers the gambling market there.
Conclusion
We hope this article thoroughly explains why casino licenses are so important for both the player and the platform. Not only are both parties protected, but there are also numerous benefits for the casino and a potential new player. We advise you to always do your due diligence and inspect a casino site with a fine-tooth comb, read player testimonials, and look at its games, payment options, and customer support[5] to begin with. That way, you can be sure your fun comes with a hefty dose of peace of mind.
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- How AI will disrupt fraud prevention & detection technologies, Written by Ingo Steinhauser, Published by Thomson Reuters
- Many finance marketing campaigns lack humanity, Written by Carmen Reichmann, Published by FT Advisor
- All You Need to Know About Curacao Gambling Licenses, Written by Alex Smith, Published by Casinomeister
- Great Customer Service: It Starts With Your Employee Experience, Written by Matthew Garner, Published by Forbes