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.
A gambling license is essential if you want to run a legal and successful online gambling business. But there are many different licenses out there in different jurisdictions, each with its own set of benefits, obligations, requirements, and negatives. So which one to choose and which is the best option for your business? In his latest column for Yogonet, iGaming industry consultant Ron Mendelson shares expert advice to help operators make the right decision.
Get expert advice The internet is a wealth of information and you can find hundreds of websites all providing blogs and other resources on how to set up an online gambling company or get a gambling license. But not all of the information is consistent or correct, and you may find differences and errors. That is why you must find a trusted expert who can assist you in picking the right jurisdictions, getting your paperwork together, and going through the entire application process. In addition, you should find someone who can take care of other corporate services such as company incorporation, structuring, maintenance, and compliance. Getting expert advice will not only help you get a license, but it will help you get the best license for you and your business needs. If you decide to go it alone, you increase the risk of making the wrong decision or making a mistake in the application process that could cost you time and money.
Look at all the options Many jurisdictions worldwide offer online gambling licenses to entrepreneurs and businesses. But not all are suitable for every kind of business. There are onshore licenses, offshore licenses, and even jurisdictions that don’t require licenses, such as Costa Rica. Each has different benefits and drawbacks, and you must assess each one through the lens of your own business needs to see which is the correct choice; of course, you should always seek advice from your corporate service provider, who can give you all the ins and outs, based on their extensive experience. For example, Fast Offshore has over 25 years of experience in this area and is perfectly placed to assist.
Don’t just consider the cost Of course, whether you are a startup or an established business, cost and expenses are always important considerations. But when it comes to picking the right jurisdiction for your iGaming business, it is necessary to look beyond just price. You need to look at the long-term benefits and negatives and any costs that could crop up in the future. For example, if you go for a low-cost license but limited reach, you may have to invest more in the future to get a license that can offer you more. This is an excellent example of when the cheaper version is not always the most cost-efficient. You should also factor in taxes, compliance, audits, and other obligations, which have a financial burden. Again, your corporate service provider can help you figure out how much it will cost to run your business in certain jurisdictions while helping you pick the best one for your short, and long-term goals.
Look offshore As mentioned earlier, there are various options when it comes to getting an online license. This includes onshore and offshore versions. Onshore means you choose a license in the country you are resident in or native to. Going offshore means choosing a location based on the benefits of the license you want rather than just the geographic location. Offshore jurisdictions are often lower-cost, have fewer financial obligations, and simplified set-up processes. They also usually benefit from a lighter regulatory approach from the authorities, which is useful for businesses that want to grow and keep costs low. If you want more information on which offshore jurisdiction to opt for, Fast Offshore is here to help.
Fast Offshore has been working in the online casino sector for over 25 years. Our team is ideally placed to assist you with every step of the process and manage your corporate needs going forward. To speak to a member of our team today, contact us here.