MGA Licensed Online Casinos vs. Curacao Licensed Online Casinos

Online casinos have made it easier for people to gamble online. This is made easier by the rise in internet access and information technology. You can simply take part in any form of gambling in the comfort of your home. All you require is a device like a computer or smartphone and a good internet connection.

One characteristic that makes it easy to gamble online is an easy registration process. It only takes you a few minutes to create an account. With multiple methods available to deposit money, you’ll be gambling in no time. Find out if it’s legal to gamble online in your country or not. Better safe than sorry.

Online casinos have changed the industry immensely. Gone are the days you had to track down a land-based casino to play. Now all you need is a website and an active account. There are both legal and illegal operating online casinos.

Those that are legal have licenses obtained in the countries they operate within. I.e. in Denmark casinos are licensed by Spillemyndigheden, in Sweden by Spelinspektionen, in the Netherlands by Cruks (casinos without license and Cruks are still very popular among Dutch players). Some other important licenses are from respected jurisdictions industry such as Malta and Curacao.

Curacao Gambling Authority

Curacao was one of the leading countries to start licensing online casinos. To date, they remain a powerhouse in all forms of online gambling. It was the leader when it came to establishing laws that govern any form of gambling online. Many operators that offer offshore gambling clamor to get a Curacao license to authenticate their operations.

To obtain this license, an operator has to get in touch with the Justice Minister of this country. He/she is the only one mandated to issue this official license and no other. There are four organizations within Curacao permitted by the Justice Minister to issue the license. They have the authority to do so under the Master license that they each hold.

Any online operator that requires an operating license from Curacao can get it from:

1. Cyberluck Curacao NV
2. Antillephone NV
3. Gaming Curacao
4. Curacao Interactive Licensing NV

Through these organizations, all online casinos can apply for a Sublicense. With this sublicense, they can officially identify as being overseen by the Curacao authority. This license covers all gambling operations.

To qualify for this sublicense, online casinos must meet certain requirements as set by the authority.

1. Affiliate with a Caribbean Island Company

The rule is that only companies around the Caribbean region can obtain a Curacao license. This means offshore casinos are required to find a local online casino to affiliate with. By doing this, they meet the requirement set by the Curacao authorities.

2. Have Local Physical Location

Despite operating online, any company seeking this license must have some form of physical local operations. This can be as simple as having a base where all client data is stored on a server.

3. Clean Record

No operator with a criminal record will be granted a Curacao Sublicense. You must produce proof of having a clean record with your application.

4. Bank Account

All online operators seeking a sublicense must open a bank account with any of the local banks. This applies also to casinos that operate using cryptocurrencies only.

5. Provide Multiple Transaction Methods

To make it easier for online casino players, the operator must provide multiple methods of transacting. This includes bank cards and Ewallets from all across the world.

6. Capital

Clear financial records are required to show the business has enough capital to operate as an online casino. This is done in terms of past and current financial statements

Price of the Curacao Sublicense

Most online casinos view the sublicense as a cheaper alternative making it a favorite of many. This is in comparison to other licenses in the industry. The fee you pay for the sublicense is about $4000-5000 per annum. As a new member, you must pay a submission fee as well. This is done once.

There are other charges to factor in as you submit your application. The e-zone charge for the application is one charge to keep in mind. It is paid at the end of each year by all sublicense holders. Another charge to consider is the total cost of setting up a local company as required by the Curacao authorities.

MGA Gambling Authority

For many online casinos, Malta is the place to go when seeking a good license for their operations. Over the years this has become another favorite of many. A little research in most online casinos attests to this truth. Most are bound to have official licenses issued in Malta. The official license is issued by the Malta Gaming Authority (MGA). This is the organization charged with the mandate of overseeing all gambling activities.

Previously the MGA was known as the LGA (Lotteries and Gaming Authority) when it was established in 2001. The change in name came with the revised laws that came into effect in 2015. The authority saw it necessary to enact these changes with the boom in online gambling. Most online operators clamor to meet the requirements set by the MGA and obtain licensing.

Unlike the Curacao Sublicense that fits all forms of online gambling, in Malta, there are 4 different classes of licenses. It takes quite a process to obtain thee licenses form the MGA. This is one of the reasons why the MGA has a variety of structures such as:

1. Governing Body
2. Executive Committee
3. Audit Committee
4. Fit & Proper Committee
5. Supervisory Committee

As earlier stated, the MGA licenses are categorized into four distinct classes.

1. Class 1

These are online casino games normally found in many sites and land-based companies. They include keno, video poker, table games, slots among others. The class also includes online lotteries.

2. Class 2

All those involved in betting that have fixed and spread odds belong in this class. Others included are those operators with pool betting.

3. Class 3

These are operators with poker networks that have peer to peer betting and bet exchange.

4. Class 4

Holders of this license are permitted to host and manage gaming operators that are remote. However, they aren’t permitted to operate as a gambling site.

Malta Licensed Casinos vs. Curacao Licensed Casinos

These two have their pros and cons which are taken into account by all online operators. By doing so, they can choose the best one for their operation.

Pros of the Malta Online Casino License

1. Regular Auditing

The MGA requires all licensed operators to submit their financials for regular auditing by the Audit Committee. This is in compliance with the regulations set by this authority.

2. Licensed Providers

Operators seeking licensing by the MGA must source their software from recognized and licensed providers only. Failure to comply with this will see the license revoked.

3. Transacting Methods

To better safeguard the interest of players, the MGA only works with operators that use banking solutions that are quality.

4. Anti-Money laundering

Each operator holding an MGA license must show measures put in place to prevent money laundering.

Cons

1. The operator must have a physical location within Malta. This is in terms of software and hardware.
2. Limited Access

The license is not accepted in certain countries like the UK.

Pros of the Curacao Online Casino License

1. Recognition

Being one of the founding jurisdictions for online gambling rules and regulations, Curacao is quite respected. This is why holding its sublicense is coveted by many operators.

2. One License

Operators need only apply for one license despite the type of gambling they’re involved in. This makes the application process easier.

3. Various Developers

Curacao doesn’t restrict operators to certain software developers. This is quite beneficial to them but might not be safe for players.

4. Easy Process

Because it’s only one license, then the application process takes less time. This means the operator can start running within a short time.

Cons

1. Restricted Countries

The license limits operators from operating in certain countries like the US. An operator has to consider its main operating countries before applying for this sublicense. ‘

2. Lenient Restrictions

The Curacao authorities still have a long way to go in dissuading licensees from engaging in money laundering activities. More measures are put in place. This has earned the license a poor reputation across the world.

Conclusion

Licenses from these two jurisdictions are a common feature in most online casinos that you access. This is because the two are widely recognized internationally. They have both advantages and disadvantages that an operator needs to learn about before applying for either.