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 that︀ regulation and operate in the grey zone (or entirely black), through offshore licenses.

Your options︁ are to find someone who offers a whitelabel solution where you piggyback on their licenses︂ (not realistic with a tiny budget), obtain an offshore license (ie Curaçao, Antigua, or Kahnawakee︃ - not realistic with a tiny budget), or operate without a license. If you operate︄ 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 lack︆ of a bank account might not be such a big problem.

As always, your first︇ 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]

Hello, thank you very much for your answer

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

Yes, the game︊ is regulated here, and somehow the game with cryptocurrencies are also in Spain.
So, if︋ I want to operate without a license, should I have an offshore company (servers) in︌ 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]

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]

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]

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]

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 are︂ to either go completely black (illegal), or find other people (investors, co-founders) who can help︃ you fund the business enough to do a whitelabel deal. You can probably find someone︄ 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 the︆ RNG you use to determine it's a fair game.

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

 

[doraemon4k]

Hello, thanks for answering,
Then I would need︄ 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 l︅
It is similar to what you propose, do you think it is reliable?

I will︆ consider your advice
Greetings and thank you

 

[doraemon4k]

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

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

They recognize that︆ Costa Rica does not need a license, but they talk about a data processing license︇ that
allows you to perform gaming activities outside the territory of Costa Rica,
I have︈ 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 option︉ to acquire this?

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

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

 

[Sols]

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

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

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

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

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 forensics︍ and academic researchers. It's not a simple project but one you will likely have to︎ 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]

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]

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

 

[Elve]

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 firm︀ in San Jose.

 

[SaintVince]

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 every︀ time a domain and server gets blacklisted.

thanks to @Sols for directing me to Russians︁ 😉 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 as︃ a small hobby/interest with couple of thousands of dollars and soon you have a 50-100︄ person team and paying out millions in affiliate marketing fees every month/week. And at that︅ point people stop thinking about going the legal way because everything is already working and︆ illegal is the only way they know this business model.

but of course there are︇ 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]

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

 

[dvm]

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

 

[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