Online casinos in 2021 are generally safe. We have regulators to thank for providing a safe gambling environment for everyone.
The UK and Malta, two of the leading iGaming regulators in the world, have high standards new casinos must meet to operate in their jurisdictions.
These regulations are so strict that many applicants fail at acquiring licenses. Others get licenses but lose them for not adhering to regulations.
While these rules are tough for operators, they help players play safe games enjoy fair bonuses, and bank safely.
License Application
The first and most important thing an investor needs before launching an online casino in the UK or Malta is a license. You need an operating license that gives you the authority to offer casino games.
The licensing procedure takes up to four months and involves paying a non-refundable application fee worth between £2000 and £42,000. The stark difference in price is due to the fact that there are different types of casino licenses.
Someone acquiring a license to run a bingo site doesn’t pay the same amount as an applicant who plans to offer a fully-fledged online casino.
That said, the total fees, including annual fees, tend to favor casinos that provide both casino and sports betting. This explains why many online casinos also feature sportsbooks.
Besides the license application fee, casinos also need to pay annual fees. The first annual fee is paid within one month of acquiring a license.
It costs anywhere from £21,000 to £450,000. However, the fee can be halved or waivered altogether if a business is not yet operational.
Compliance
The main reason casinos are licensed is so that they comply with a specific set of standards first, the UKGC and Malta’s MGA assesses a casino fully to ensure it follows all the required laws and codes of conduct.
Sometimes regulators can also assess a casino in what is called a targeted assessment. This happens when a website is suspected of violating a law or defrauding customers. In the UK, targeted assessments also involved police at times.
However, authorities may not be needed when the assessment is aimed at looking at issues that don’t warrant police involvement. For example, there could be a website assessment or an overview of the roles given to different casino employees.
That said, the most daunting assessment for a casino is “reactive compliance.” It comes after a regulator investigates a firm and finds wrongdoing. Most of these assessments end in fines or license suspensions for the operator.
Partnering with Licensed Software Providers
You’ve probably noticed this but many online casinos lease games from well-known software companies. That’s because casinos have a duty to ensure they provide fair games. By law, their games need to come from licensed software companies.
Many of the leading software providers have licenses from major regulators. This makes it easier for casinos to partner with them. Dreamz.com, for example, has 1000+ games from over a dozen software providers.
In case you’re wondering, some of the most trusted software providers for online casinos are NetEnt, Betsoft, Microgaming, Playtech, Play N GO, Evolution, and BTG. Different casinos have partnerships with different software companies.
The explanation behind licensing game developers has everything to do with safety. Regulators don’t take things to chance. They want to ensure players play fair, high-quality games. And the only way to ensure developers create safe games is to hold them accountable.
Safe, Convenient Banking
There’s a reason you can’t use just about any payment method at online casinos. Operators are required to pick their banking partners carefully. First, the payment company needs to be licensed and regulated.
In the UK, for example, the only payment companies that work with British casinos are those licensed in Britain. Companies like PayPal, Visa, MasterCard, Skrill, and Neteller have permits to operate in the UK.
However, Bitcoin isn’t regulated in the UK. And that’s why so many online casinos in the country don’t support cryptocurrency. In Sweden, Germany, and Finland, casinos that support Trustly also offer no registration accounts. But the same things don’t happen in Malta due to regulatory differences.
Fair Bonuses
Although casinos have the prerogative to give the bonus amounts they want, they have to follow certain standards. These rules are important because they protect players from exploitation.
Bonus exploitation works in simple ways. A casino can offer to match your first deposit 100% for a maximum of $5000. For clarity, this is a pretty huge bonus. The problem: the same operator might fail to reveal crucial terms for giving you the bonus.
Of course, you need to make a deposit before you can get a bonus. So, you could deposit $5000, use it and win something. However, you can’t withdraw your winnings because the rogue operator will reveal its exploitive terms afterward.
Regulators protect you from these forms of exploitations by demanding accountability from casinos. They direct operators to reveal their bonus policies beforehand. That way, you’ll have an idea of what rules to expect after claiming a bonus.
AML and Problem Gambling
You might have noticed nearly every casino you join asks for identity verification documents. This is not an accident. Operators do this to follow laws they’re required to help authorities to ensure everyone casino player is law-abiding and can have their identity verified.
On the other hand, casinos have a role in protecting vulnerable players. They can’t just watch as a player overspends their money on games. They are required to offer tools to help with budgeting or to suspend a player’s account.
Not everyone regulator is keen on enforcing problem gambling, though. If you want a casino that doesn’t care much about how you spend your money, they do exist. However, many British and Maltese casinos have strict player protection laws.
If an operator is found to offer games to a player with a documented history of addiction, they face getting fined by the UKGC or the MGA. In the worst cases, the operators can have their licenses revoked or be forced to return wagered money to a player.