We made a Bingo website for real money. Now what?

[PMP]

Hi,


I represent a small group of developers and web-designers with very limited financial resources from Portugal (typical).


Our project in development is a online Bingo website for real money with high definition graphics, exclusive offers and many news and innovations never seen before in this type of gaming.


We are now in the final stages of development and we we are beginning to think that we must use an offshore subsidiary to hold the assets of the business.


We also need to have access to methods of payment like VISA, MasterCard, EntroPay,NETELLER, PayPal, Skrill (Moneybookers), Ukash and Paysafecard.


We just have the website and we want to put it online without having legal problems or closed accounts.


Our idea would be to start use types of payment and deposit with a personal account on Paypal, Neteller and maybe Skrill and host the site in Costa Rica with out any application data (if this is possible)


The money deposited by the players would only be used only for payments to players.


After seeing that we have business, then we acquired one license in another and most reputable offshore, hire an attorney to register a company and open a bank account for transactions and to acess methods of payment like VISA and MasterCard.


Due to lack of financial resources, i think we have no alternative than this.


What would you do in our situation? What other solutions can we have?


Thank you.thumbups

 

[Zqq]

Forget PayPal. They only allow⁤ new gambling merchants in territories with licenses, meaning you need one license per country you⁣ want to offer PayPal in. In Europe, this basically comes down to UK, Malta, Belgium,⁢ Denmark, Spain, Italy, France, and Estonia. PayPal is not popular enough in Europe to justify︀ this as a new and small gambling operator.

Forget Entropay. They are expensive and generally︁ unpleasant to work with.

You get Visa and MasterCard (plus Maestro) via a merchant account,︂ provided by an acquiring bank, and a gateway, supplied by a payment service provider︃ (PSP). Usually, the PSP can introduce you to an acquirer at favourable rates.

If you︄ are going to focus on Portugal, stick to payment methods that are big in Portugal.︅

Forget this if you are serious︌ about your business. First of all, you won't be able to target any of the︍ major marketing channels in Europe unless you have a license in Europe. Secondly, very few︎ payment providers will want to touch you if you are based in Costa Rica, and️ the ones that do will charge you through your nose.

I have been⁠ involved in the operation and start-up of several online gambling companies. Costa Rica is only⁤ useful for targeting specific countries, but it's difficult to find payment processors that won't rip⁣ you off.

My preferred jurisdiction is Malta. The licensing process can be a bit slow⁢ and requires significant capital, but if you can find a bank willing to give you︀ a loan or an investor willing to provide the capital, it's well worth it. Aside︁ from Malta, you have Gibraltar, UK, and Isle of Man in Europe; all of which︂ are good jurisdictions. I think the UK might have something special for bingo sites that︃ you may find interesting. Check with the UK Gambling Commission.

If you absolutely cannot afford︄ even the most basic license in Europe, take a look at Curaçao. It is a︅ fairly reputable jurisdiction. I know many payment processors that don't deal with Costa Rica but︆ do deal with Curaçao. The license costs in Curaçao are only about $10,000 per year︇ and you pay a very favourable tax rate.

 

[PMP]

I already have the answer from Curacao Gambling Commission:

Facts: $1560/mo is much money for a start-up projet and︇ for us.

We'll have to find an investor.

Can you recommend any forum or website︈ or person where we can present our project to investors in this area ?

 

[Zqq]

If you don't have the money to get a license in Curaçao, I‌ don't think you have what it takes to make this work.

I'm sorry if you‍ think this sounds rude, but I have seen people crash and burn so many times⁠ in this industry; many of them with far more money and experience.

How do you⁤ intend to pay for things like hosting (unlicensed gambling can only be hosted in certain⁣ jurisdiction, where hosting costs are quite high), marketing, support, anti-fraud, and a Costa Rica company?⁢ What's your business plan like? How are you going to finance the relocation to Costa︀ Rica, or do you plan to stay in Portugal and hope the authorities don't find︁ you?

The problem is︃ that you are developing your own game with nothing behind it. There are many whitelabel︄ solutions out there, where someone supplies you with a technical platform (including games), customer service,︅ anti-fraud, payments, and so on. This won't work for you since all you have is︆ a game, and no money.

Sure, you can go for the Costa Rica route and︇ maybe do so for just a few thousand per year but don't be surprised when︈ your site doesn't go anywhere because you can't market it in Europe or when your︉ profit margin is destroyed by high payment processing fees.

It sounds to me as if︊ you are more likely to make money by licensing your game to other gaming operators︋ than to try to be one yourself. If your game is as good and innovative︌ as you say, I'm sure you would be able to find a buyer/licensee.

 

[PMP]

Can you tell your preferring PSPs?

Do you mean if our⁤ target is Portugal? No. Our target will be EU and Central America players. The site⁣ will be in English and $ will be the currency for the start.

Agree, but if we can´t get any investor, i´m afraid that will be︃ the only solution,unfortunately.

BTW, we have 25% of the business reserved to an investor.

What you think about this payment processors (excluding︆ the fact that do not give credibility):

- Solidtrustpay

- Payza

- Alertpay

- EGOPay︇

- STP

UK Gambling Commission︉ requires that gambling company as residence in UK (if a read right). For that I´m︊ out.

 

[PMP]

If anything else fails, that will⁤ be the 2º solution.

First I will try to find a Investor for 10K and⁣ 25% of the business (or more if we go to a license in Malta).

We have support and marketing. Hosting is about $70/mo with configuration we need.

About moving physically⁢ to another country, that´s out of question. We must find a jurisdiction that do not︀ force to be living in the country where the license is issued.

And sorry about︁ my questions. I´m very newbie in this subject and my English don´t help 😉

 

[Zqq]

Unfortunately, I cannot as‌ I would violate NDAs and other contractual obligations. However, what I can say is that‍ I deal with some of the biggest PSPs around (as well as a few smaller⁠ ones).

SolidTrust Pay - Have looked at in the past, but discarded due to high⁢ costs and bad reputation. They quoted us rates about twice what I was currently paying︀ at the time. They thought we were lying. Shows how experienced they are.

Payza/AlertPay -︁ Total clowns. They keep losing their MIDs. Tried to save their reputation by re-branding themselves.︂ Doesn't do gambling.

AlertPay - They are now Payza.

EGOPay - No experience. Looks like︃ yet another e-wallet that no one uses. Doesn't do gambling. Belize company. I wouldn't touch︄ them.

STP - Are you referring to SolidTrust Pay again, or someone else?

 

[PMP]

I really believe that we have a great great product and I must try to‌ go online with it.

However I will now study the chance to sell website to‍ operators. Gone try find a forum for that.

Thanks for the help.:thumbsUp:

 

[PMP]

License the game is even more⁤ expensive than getting a license in Curacao. It´s a casino game and it would have⁣ to go through a long and complex process of assessing security and data protection that⁢ lasts 6 months and costs no less than $ 50k. Furthermore our game is part︀ of a website and therefore there is no need to download. Even if we had︁ licensing conditions, we would have to turn the entire site into a software. To do︂ that we would start all over again.

Assuming I can afford a gaming license in︃ Curacao, I wonder if we are required to be physically present to obtain a gaming︄ license and open a bank account or a lawyer in Curaçao could make this work︅ for us?

Two more questions..

We must incorporate in Curaçao or open a branch office︆ to open a bank account?

I'll have to run the site from Curacao or can︇ I do it from Portugal?

Thanks.

 

[Zqq]

The same process will apply if you offer your game as a︀ gambling operator. Licensing authorities will audit your game, even in places like Curaçao.

You must have operations in Curaçao, but you can have foreign ownership. In theory,︇ everything can be set up remotely.

 

[PMP]

What you think about payment gateways, like Tain ? It´s a secure solution to access‌ online payments like credit cards without open bank account ?

 

[Zqq]

I know a couple of gambling operators that started out on Tain and similar platforms.‌ They are fine.

 

[PMP]

Unintentionally opened a site just about white label. You have some knowledge about this matter?‌ Is another possible solution to license the game?

 

[Zqq]

I mentioned‍ white labels earlier:

"The problem is that you are developing your own game with nothing⁠ behind it. There are many whitelabel solutions out there, where someone supplies you with a⁤ technical platform (including games), customer service, anti-fraud, payments, and so on. This won't work for⁣ you since all you have is a game, and no money."

I have a very⁢ hard time seeing a whitelabel provider integrate a new (and unaudited) game into their platform.︀