Online Casino License Benefits?

JamesFriday said:

Getting licensed in the EU adds another huge benefit in targeting a larger customer base, but what benefits do you actually get from being licensed outside the EU or US in terms of legally accepting players? For example Curaçao

You can take players from EU under offshore licenses like Curaçao, Anjouan, or Tobique. Those licenses require you to block certain markets, though, but not everyone follows that.

However, taking a for example Spanish player under a Curaçao license is not permitted under Spanish law. But it is under Curaçao law.

JamesFriday said:

What countries can you legally accept players from when unlicensed? and how does this change when licensed in an offshore jurisdiction?

For the most part, it doesn't make a difference. Regulated markets only recognize their own licenses.

JamesFriday said:

1) In which jurisdictions are the unlicensed casinos able to host their webservers? as they are not allowed to do so in most, if not all, of the incorporating jurisdictions?

Most are hosted with AWS and other major hosting providers, with Cloudflare or similar to obfuscate the location. Just be ready to make a quick switch if anything happens.

JamesFriday said:

2) I see Costa Rica has been recommended several times for the purpose of unlicensed crypto casino incorporation. Are there any other viable options? I have heard St Vincent Grenadines would be good, but im not sure about the legality here.

Costa Rica doesn't have any laws that allow or any laws that prohibit online gambling, which is why it's so popular. There are other places in the world with similar legislation but the advantage Costa Rica has is that it's well known. It's also not a problematic tax haven or considered high risk, like SVG and similar places are.

JamesFriday said:

3) Are there any operational considerations to keep in mind in terms of AML compliance when accepting crypto payments in Costa Rica for example?

AML laws apply the same regardless. You need to have an AML framework in place that ensures your platform is not used for criminal activities like money laundering or financing of terrorism.

JamesFriday said:

That being said it might be wise to enforce some geoblocking of certain countries. From what I could gather these 5 are supposedly known to actively attempt prosecution of offshore unlicensed operators allowing their citizens to play.
United States
France
Belgium
Italy
Australia

To expand this list with other countries where its supposedly illegal for the player to use offshore unlicensed operators and/or strictly enforce the national license requirement as well:
1. United States
2. United Kingdom
3. Australia
4. France
5. Italy
6. Spain
7. Belgium
8. Netherlands
9. Sweden
10. China
11. Turkey

Would you agree on this list or have some input to the thought?

US is scary on paper but isn't do much if anything right now. Wise to stay away from, though.

Turkey can be aggressive. Don't go to Turkey for vacation if you run a big gaming company focused on Turkey and your involvement is publicly known.

The worst the rest do is send warning letters to you and they might issue public warnings. Some countries have DNS blocks. Fines are possible but usually not enforced (if enforceable). It's at the end of the day a risk-based decision you take.

JamesFriday said:

When you say you can take players from the EU with offshore license, do you mean like with the Spanish example, where Spanish law prohibits, but Curaçao law accepts?

Exactly. Curaçao law doesn't prohibit you taking Spanish player. Spanish law prohibits you offering gambling to Spanish players without a Spanish license.

JamesFriday said:

Being able to accept these EU countries would be just as possible in terms of legality if unlicensed compared to offshore licensed?

Effectively, yes. You are considered unlicensed because you don't have a local license.

JamesFriday said:

And may I ask what markets one would be asked to block?

Depends on your license. IIRC, it's something like...

Curaçao: UK, US, Netherlands, France.
Anjouan: US, Germany.
Tobique: US, UK, and parts of Canada.

Plus high-risk territories like Iran, North Korea, Yemen, and such.

You also need to consider the risk of customers suing you when operating under an offshore license.
The customer may be able to reclaim their funds if you are operating without a local license or a recognized authorization in their jurisdiction.
Numerous specialized law firms handle such cases , especially targeting casinos in Curacao ( e.g https://www.redell.com/blog/online-glücksspiel/gericht-verurteilt-araxio-development-n-v-aus-curacao-zur-rueckzahlung-aller-spielverluste )
And also Curacao is a part of the Hague Convention on the Recognition and Enforcement of Foreign Judgments in Civil and Commercial Matter , which makes it much easier for the customer to "reclaim" his lost money while gambling

Last edited: Feb 10, 2025