So, You Want to Open a New Business? Choosing the Right Licence

Enticed by the multi-billion pound online gambling industry? Looking to set up your own online casino, sportsbook or other gaming venture? You’ve got the business plan, the platform and the marketing strategy – but what about the all-important gambling licence?

Choosing the right licence is critical in this highly regulated industry. Get it wrong, and your business could be dead in the water before it even launches. Select wisely, however, and you’ll be on track for success.

Why Do You Need a Gaming Licence?

Virtually every country requires gambling operators to hold a valid licence that proves the business meets strict standards. These licences are not easy to obtain – the application process can be long and complex. Regulators aim to permit only trustworthy, ethical operators who will provide fair games and protect vulnerable players.

Even if you manage to launch an unlicensed gambling website, most reputable payment processors and software providers will not work with unregulated operators. So, attempting to dodge licensing requirements rarely ends well.

Key Licensing Considerations

When evaluating which gaming license is right for your business, keep these key factors in mind:

Location and Market Focus
● Where will your company and key operations be located?
● Will you focus on players in specific countries or territories?

Licensing jurisdictions usually require companies to have a registered local presence and target only approved markets.

Compliance Burden
● How much can you invest in meeting licensing standards?
● Do you have the resources for ongoing reporting and audits?

Partnering with a trusted sportsbook software provider helps ensure your platform meets regulatory standards and simplifies the compliance process.

More reputable licences have greater compliance requirements, increasing costs but providing higher trust.

Credibility and Reputation
● Do players and industry partners recognise and trust the licence?
● Does holding this licence support or damage your brand?

Opting for an obscure licence to reduce costs can backfire by harming credibility.

Spotlight on the Tobique Gaming Licence

One lesser-known licensing choice that is gaining some attention is the Tobique Gaming Licence from the Tobique First Nation band government in New Brunswick, Canada. Let’s take a closer look at what this licence entails and whether it checks the right boxes for a successful gaming business.

Overview of the Tobique Licence
● Issued by the Tobique Gaming Commission, an arm of the Tobique tribal government
● Originally created to regulate the Tobique First Nation’s own gaming facilities
● Now being marketed as an online gambling license through various third-party providers

The licence claims to authorise online gambling operations, including casinos, sports betting and bingo sites. But how legitimate is it really?

Find the complete answer to this question here: https://inteliumlaw.com/gaming-license/tobique/.

The Good

Straightforward Requirements

Compared to major licensing jurisdictions, the Tobique licence application requires less operational infrastructure in the tribe’s remote jurisdiction. This light touch appeals to new gambling companies trying to minimise compliance costs.

Tax Advantages
Licensed operators can incorporate to gain tax-exempt status. This perk can boost profit margins.

Fast Processing
Providers tout of “one of the easiest online gaming licence to obtain”, with approvals reportedly granted in as little as 6-8 weeks. For comparison, allowed European licences often take 3-6 months.

The Bad

Questionable Legal Status

Unlike established gaming jurisdictions, Tobique’s authority to license online gambling for non-tribal operators is legally dubious both in Canada and abroad. Regulated markets could still block access.

Low Credibility
Very few established gambling brands use a Tobique licence. Industry partners and players view it as a red flag, creating trust issues.

Minimal Oversight
Light regulation means operators must self-govern responsible gambling and game fairness controls, with little auditing or enforcement. This raises ethical concerns.

Expert Opinions
Given the unusual nature of this tribal licence, what do experts make of its legitimacy?

Legal specialists argue that the Tobique First Nation lacks jurisdiction to permit online gambling outside its Indigenous territory without federal or provincial authorisation. The licence offers no protection against criminal liability.

Business advisors caution that it functions more like a registration than an authoritative licence. Weak oversight means that scam operators exploit it to appear legitimate, further damaging its industry reputation.

Overall, the consensus is that the Tobique gaming licence is rather questionable, especially for companies targeting customers across international borders.
Choosing a Credible Gaming Licence

While the Tobique licence might allow you to open a shop quickly and cheaply, it carries significant legal and reputational risks. Rushing into the first licensing option you find is ill-advised.

Take time to research established licensing jurisdictions that are internationally respected and legally recognised as permitting online gambling – Isle of Man, Alderney, Malta, Gibraltar, Curacao and Kahnawake, for instance.

Though the application process may be more stringent and taxes higher, obtaining a recognised licence brings crucial advantages:

● Legal Certainty: Your business will operate firmly within the bounds of the law, significantly reducing liability risks.
● Industry Access: Major payment systems, software vendors and support services will be open to working with your licensed company.
● Consumer Trust: A reputable licence reassures players that you meet high standards, increasing brand credibility.

The licensing choice you make can literally make or break your gambling business before you even get started. While the Tobique First Nation licence may promise an easy entry point, it delivers little long-term security. Investing in a respected licence from the outset is worth the effort and expense.

Final Considerations Before Launching Your Gambling Business

Once you’ve researched options and selected an established, credible gaming license, completing the application procedure should be your top priority. But don’t neglect these other key steps too:

● Secure Solid Funding: Licensing and compliance costs quickly add up. Work with investors who understand this sector.
● Build Ethical Policies: Outline your commitments to fair gaming, responsible gambling support and financial accountability.
● Partner with Experts: Work closely with legal, licensing and gaming veterans who can steer you through technical requirements.
● Analyse Target Markets: Get advice regarding potential demand, competitor saturation and any country-specific regulations.

Gambling can undoubtedly be a profitable enterprise, especially online. However, taking shortcuts by compromising ethics or regulatory compliance will cause more problems than success. Do your homework, choose your partners carefully and invest in a recognised licence upfront. That’s the soundest strategy for building a sustainable, trusted and successful gaming business.