Bitcoin gambling license

[doraemon4k]

Hi everyone
I am creating a web casino that only operates with cryptocurrencies, I need information on how I can do this legally, the problem is that my budget is very small, I have been looking at licenses in Costa Rica around 4.000 $, then I saw in some forums that in Costa Rica does not need a license, so I am a little lost in this matter, would someone with experience know how to guide me in this matter?

thanks

 

[Sols]

It's true you don't need a license in Costa Rica (more precisely, there are no licenses and no local laws on the matter), but if you plan to take customers from jurisdictions where gambling is regulated (which is most of them by now), you should also have local license for each country. It used to be that serious gambling companies would get a license in Malta and that was enough for most of the world but nowadays these companies also need to get a local license in every EU country, US state, and so on.

However, there are thousands of gambling websites that avoid that regulation and operate in the grey zone (or entirely black), through offshore licenses.

Your options are to find someone who offers a whitelabel solution where you piggyback on their licenses (not realistic with a tiny budget), obtain an offshore license (ie Curaçao, Antigua, or Kahnawakee - not realistic with a tiny budget), or operate without a license. If you operate without a license, you will struggle to find game providers, marketing partners, and bank accounts. It's not impossible but it's hard. If your business is entirely in crypto, the lack of a bank account might not be such a big problem.

As always, your first challenge begins at home. Where are you based? Is gambling regulated there?

 

[JohnLocke]

@Sols already nailed it. I only want to ask what is your budget to setup this operation, 4K US$ only?

 

[doraemon4k]

It's true you don't need a license in Costa Rica (more precisely, there are no licenses and no local laws on the matter), but if you plan to take customers from jurisdictions where gambling is regulated (which is most of them by now), you should also have local license for each country. It used to be that serious gambling companies would get a license in Malta and that was enough for most of the world but nowadays these companies also need to get a local license in every EU country, US state, and so on.

However, there are thousands of gambling websites that avoid that regulation and operate in the grey zone (or entirely black), through offshore licenses.

Your options are to find someone who offers a whitelabel solution where you piggyback on their licenses (not realistic with a tiny budget), obtain an offshore license (ie Curaçao, Antigua, or Kahnawakee - not realistic with a tiny budget), or operate without a license. If you operate without a license, you will struggle to find game providers, marketing partners, and bank accounts. It's not impossible but it's hard. If your business is entirely in crypto, the lack of a bank account might not be such a big problem.

As always, your first challenge begins at home. Where are you based? Is gambling regulated there?

Hello, thank you very much for your answer

Small amounts of money will be moved on my website (only in cryptography, deposit and withdrawal), I do not need game providers or bank accounts, I am programming my own cryptocurrency game,

Yes, the game is regulated here, and somehow the game with cryptocurrencies are also in Spain.
So, if I want to operate without a license, should I have an offshore company (servers) in another country like (Costa Rica)?

I want to do everything possible in the legal framework, so as not to have problems in the future.

sorry for my english, greetings

 

[doraemon4k]

@Sols already nailed it. I only want to ask what is your budget to setup this operation, 4K US$ only?

Yes, my budget could be around that price for this, but more is impossible, I already spent a lot on the project and I need funds and advertise for my business

 

[SaintVince]

anyone from this forum has an online casino.
What options are there for white label casino?

 

[SaintVince]

spaniard here as well.....I'm also interested in crypto gambling .... I found that some russians have online casinos operating without any license....of course,you will need an offshore VPN for setting up your site....

I think in Russia everything is possible. But I wonder how can they accept payments? Or is it crypto only?
do you have a name of their casino?

 

[doraemon4k]

spaniard here as well.....I'm also interested in crypto gambling .... I found that some russians have online casinos operating without any license....of course,you will need an offshore VPN for setting up your site....

Can you tell me a little more about this? Or where can I find relevant information about the problems I may have with justice, where should I install the servers and how to declare all this in Spain?

 

[Sols]

Yes, the game is regulated here, and somehow the game with cryptocurrencies are also in Spain.
So, if I want to operate without a license, should I have an offshore company (servers) in another country like (Costa Rica)?

You're still probably breaking Spanish law, since you are in control of the company, operate from Spain (you, the human, regardless of where the servers are based), and you don't have a Spanish gambling license. You can reduce your exposure by blocking Spanish customers but that's no guarantee.

If you were to move to Costa Rica, it's a different story.

I want to do everything possible in the legal framework, so as not to have problems in the future.

To be completely honest — your options are to either go completely black (illegal), or find other people (investors, co-founders) who can help you fund the business enough to do a whitelabel deal. You can probably find someone with a Curaçao license you can work with. Although if you're building your own games, you might struggle to get a license unless you can get someone to certify the RNG you use to determine it's a fair game.

Whitelabel under EU licenses tend to require six figure capital requirements. Offshore can be done for much less.

 

[doraemon4k]

most of the times guys that don't have a license uses a front business....
about problems you can have with the justice,obviously is illegal,you are not dealing with drugs but is illegal....

What I would do is that:
starting a company is Costa Rica for the casino with nominees,I would try to get a bank account there,in Panama or Puerto Rico for the business....If you get a real physical address for the business not just a mailbox could be easier( I know a bank in Puerto Rico that could open for it and your funds are protected under FDIC,but you need a real office).
About the servers,I would choose Malaysia for that...

About declaring it to Spain, I would create an affiliate marketing company in Seychelles with nominees for example that I would use for promoting the online casino,and declare some of the money as a freelance working there as an affiliate....

Hello, thanks for answering,
Then I would need to create an offshore company in Costa Rica and servers in Malaysia.
why malaysia?
And if I operate exclusively with cryptocurrencies I also need to open a bank account?
I've been keeping an eye on this website: Costa Rica offshore company with online gambling l
It is similar to what you propose, do you think it is reliable?

I will consider your advice
Greetings and thank you

 

[doraemon4k]

You're still probably breaking Spanish law, since you are in control of the company, operate from Spain (you, the human, regardless of where the servers are based), and you don't have a Spanish gambling license. You can reduce your exposure by blocking Spanish customers but that's no guarantee.

If you were to move to Costa Rica, it's a different story.


To be completely honest — your options are to either go completely black (illegal), or find other people (investors, co-founders) who can help you fund the business enough to do a whitelabel deal. You can probably find someone with a Curaçao license you can work with. Although if you're building your own games, you might struggle to get a license unless you can get someone to certify the RNG you use to determine it's a fair game.

Whitelabel under EU licenses tend to require six figure capital requirements. Offshore can be done for much less.

If I get a registered office address and a resident representative
No problem with this then?

I have been thinking of acquiring this offer: Costa Rica offshore company with online gambling l

They recognize that Costa Rica does not need a license, but they talk about a data processing license that
allows you to perform gaming activities outside the territory of Costa Rica,
I have read many comments on this forum that say that data processing is not necessary.
They also provide legal representation in Costa Rica.
Do you think it is a good option to acquire this?


And one last question, how much do you think it would cost to obtain a white label sub-license? Recommend me a place to ask.
As for the RNG certification, I don't think I have any problem with that, all the games that I am
Doing is probably fair.

sorry for asking you so many questions, thank you very much for your time

 

[Sols]

If I get a registered office address and a resident representative
No problem with this then?

I don't think the DGOJ would be satisfied with that.

I have been thinking of acquiring this offer: Costa Rica offshore company with online gambling l
They recognize that Costa Rica does not need a license, but they talk about a data processing license that
allows you to perform gaming activities outside the territory of Costa Rica,
I have read many comments on this forum that say that data processing is not necessary.
They also provide legal representation in Costa Rica.
Do you think it is a good option to acquire this?

You can very easily and cheaply comply with Costa Rican law. That part is easy. What's difficult is complying with Spanish law. As long as you live in Spain, Spanish law applies to you.

Costa Rica can be an OK starting point if you have some staff sitting there, and later pivot into getting a Malta license or whitelabel deal. But only if you have the industry connections and financial means to build a business and brand

I'm not saying it can't be done. There are a lot of illegal gambling websites out there to prove it's possible. But you are (rightfully) concerned about this legally and I would therefore not recommend some cheap, prepackaged Costa Rica solution that will fall apart if DGOJ or other Spanish authority comes after you.

And one last question, how much do you think it would cost to obtain a white label sub-license? Recommend me a place to ask.
As for the RNG certification, I don't think I have any problem with that, all the games that I am
Doing is probably fair.

Probably is not the same as certifiably. If you look at NetEnt, Microgaming, and all the other game manufacturers, their RNGs have been vetted by law enforcement forensics and academic researchers. It's not a simple project but one you will likely have to go through if you want to offer your games under any kind of license. Otherwise, what guarantee is there that the games are fair?

You might have a great technical solution and innovative product, but gambling is a highly and tightly regulated industry.

Consider attending ICE in London next week to learn more about how the industry works: Welcome You can find whitelabel providers there of all sizes and budgets. One of the best conferences in the industry.

 

[Sols]

What he can do is moving to Cyprus,Panamá or Andorra and get the Costa Rica solution right? That could be cheaper than getting a license in Malta

If he's moving, why not move to Costa Rica?

Cyprus and Andorra aren't very gambling friendly, nor crypto friendly. Panama is OK for gambling. Quite a few Costa Rican gambling companies also have offices in Panama.

 

[Gediminas]

Consider attending ICE in London next week

I will be there too, in case someone needs any advice.

 

[Elve]

but they talk about a data processing license that allows you to perform gaming activities outside the territory of Costa Rica

This data processing license of CR is useless, it's like throwing your money in the trash (4000 USD per year). No one will recognize that license for Gambling activity as like payment processors.

If you plan to accept crypto only, you do not need a license. With a CR license or nothing your business will be illegal in any case in the EU.

But if you want to continue on this way I can advise you "GLCA abogados" a good firm in San Jose.

 

[SaintVince]

As for the RNG certification, I don't think I have any problem with that, all the games that I am
Doing is probably fair.

there is no grey here. The RNG has to be proVably fair. so it Has to be proven that it is fair, and that will be one of the items that license grantor will audit and confirm.

if you are developing your own game and it is not certified, then your only option is illegal.
im currently also looking into crypto casino and am stuck at the games part.
have the payment systems and hosting sorted as well as having the mitigation measures such as mirroring of the sites for every time a domain and server gets blacklisted.

thanks to @Sols for directing me to Russians for some advice and best practices.

spoke to several guys who know guys (small fish, as big fish are too private to approach) and looks like it always starts as a small hobby/interest with couple of thousands of dollars and soon you have a 50-100 person team and paying out millions in affiliate marketing fees every month/week. And at that point people stop thinking about going the legal way because everything is already working and illegal is the only way they know this business model.

but of course there are many many others who never make it past ideas or loose money on this.
so a lot of personal ethical moments to fight before you start this journey.

 

[SaintVince]

I will be there too, in case someone needs any advice.

Would like to hear more about your visit to ICE and any significant news in the industry.

 

[dvm]

im currently also looking into crypto casino and am stuck at the games part.

Me too, but I, conversely, have the games part done and polished, but don't have the payments part sorted out.

 

[encoupejas]

I would like to say that this is quite an interesting idea because I have not yet met an online casino that is based on cryptocurrency