Online Gambling Licenses: Which Ones Matter?

Why Gambling Licenses Deserve Your Attention

Our visitors who read our casino reviews know that we always emphasize the importance of licenses, as the first thing online casino players should pay attention to is the licenses, rather than bonuses, games, and winnings. Licenses serve as a shield against fraudulent games, the withholding of winnings, and the disclosure of your information to others.

Casinos must meet the conditions set by the licensing bodies. These conditions are:

• Fair play (RNG)
• Secure payment methods
• Responsible gambling tools
• Anti-money laundering (AML)
• Know Your Customer (KYC) procedures
• Transparent conditions

Casinos that fail to meet these conditions may face penalties, including fines and blacklisting.

Now, let’s take a closer look at the licensing issue.

What Is a Gambling License and Why It Matters

A casino license is a permit granted by an authority, government or jurisdiction to a casino to operate gambling legally. Without this license, an online casino would have no legal basis to operate.

However, this license is not just about legal permission. For players, it is like the first line of protection.

What Do Licensing Authorities Actually Do?

The licensing authorities (usually government or commissions) do the following:

• Set and enforce operational rules.
• Check the software used by the casino.
• Check the financial systems.
• Investigate complaints.
• Issuing fines and revoking licenses if casinos do not comply with the rules.

The Malta Gaming Authority (hereafter referred to as the MGA) and the Alcohol and Gaming Commission of Ontario (hereafter referred to as the AGCO) are known for their tough and stringent rules, while institutions like Curaçao and Anjouan are known for their more flexible rules. We will go into more detail about the differences between institutions later in our review.

What Happens If You Play at an Unlicensed Casino?

• You are taking a huge risk.
• They are not responsible for the money you lose or win
• They may delay or refuse payouts
• The games may not be fair and may not make anyone any money
• They may not have a customer support line
• You will not have anyone to appeal if something goes wrong

Criteria for Evaluating a Gambling License

Licenses are not equal in terms of what they provide and how they can be obtained. Some have strict policies and offer strict player protections; others are easier, faster and more casino-friendly to obtain, but less protective of players. Here are some things to consider when assessing the strength of a license:

1) Level of Regulatory Oversight:

This shows how often and in what ways the licensing authority inspects the casino.

• Are inspections regular?
• Are games tested by independent institutions (RNG)?
• Does the licensing regulator take into account player complaints?
• Is there a license revocation if violations increase?

United Kingdom Gambling Commission (hereafter referred to as the UKGC )(not applicable in Canada), MGA, Alderney (hereafter referred to as the AGCC), and AGCO are known for their strict policies. Curaçao, and Anjouan have lighter controls. Kahnawake is in between, but still tight.

2) Authority Reputation:
The reliability of a casino license depends on the reputation of the issuer.

• MGA, UKGC, Kahnawake and AGCC are widely respected worldwide.
• AGCO is relatively new but highly trusted in Canada.
• Curaçao, and Anjouan, are seen as less strict than others. However, this may change in the future.

Depending on the license used, the payment infrastructures and game providers may also take their own positions.

3) Geographical Jurisdiction:

Not every license is valid in every geography. We will try to list the most well-known license providers where they are valid, specifically for Canada.

AGCO: Only allows operation in Ontario.
UKGC: Only applies to the UK, and casinos covered by this license may be blocked elsewhere. Not valid in Canada.
Kahnawake: Primarily applies to Quebec and other states with less stringent laws.
MGA, Anjouan, AGCC and Curaçao: Valid internationally.

Top Gambling Licenses Compared

Many more governments and agencies provide licenses than we will cover below, but we would like to mention the most common ones that Canada can manage.

MGA:
Positives: Highly respected, strict standards, high responsible gambling rules, independent audits, high RNG controls.
Negatives: Expensive and time-consuming to obtain

Curaçao (GCB):
Positives: Low support and easy to set up, available in many countries worldwide, and tightening up with updates in 2024.
Negatives: Not very old, limited oversight, and rules are not strict.

Kahnawake Gaming Commission:
Positives: Moderate KYC, AML, and RNG oversight, reasonable gambling license costs, reasonable tax rate.
Negatives: The commission takes a considerable amount of time to decide on an application.

AGCO:
Positives: Strict regulations, highly respected within Canada, and follows Ontario provincial regulations.
Negatives: Expensive to obtain, only available in Ontario, not elsewhere.

Alderney Gaming Control Commission (AGCC):
Positives: Ideal for large casino brands, high standards, strict rules, and a strong reputation within the industry.
Negatives: Low recognition among average players, reasonable application fee, but very high annual fees afterwards.

Anjouan:
Positives: Affordable and easy to acquire for casinos looking to get into the market quickly. Crypto-friendly.
Negatives: Low visibility and less strict rules.

Although it is not valid in Canada, the other most well-known commission in the industry is the UKGC. So we think it is worth mentioning.

United Kingdom Gambling Commission (UKGC):
Positives: Recognition worldwide, strict rules, high level of protection in financial matters.
Negatives: Only valid in the UK, not in Canada. Canadian players should know that even if they see a UKGC license in a casino, it is relevant to the UK, not Canada.

Comparison Table of Gambling Licenses

Note: The gambling license costs given here are at the discretion of the commission, and they have the right to change them at any time.

How to Check if a Casino is Licensed

We continue to examine the security issue that we have always emphasized, the gaming license. Next, we will try to explain how you can understand whether a casino is licensed.

Although some casinos say they are licensed, they may not be. Expired license numbers, a logo of the commission, but no link, etc.

How to verify a license step by step?

1. Search for license information on the casino website:
   – Go to the Footer (mostly here), FAQ or About Us, and try to see the license number.
   For example: Licensed by MGA (license no:….).

Do not be fooled by a description such as “fully licensed” without any commission name or license number.

2. Click on the Logo or License Number (If Linked):
   A licensed casino will usually link to the official page of the license regulator. If the link is broken or leads to a dead page, be careful.
3. Visit the Official Regulatory Website:
   You can see the list of casinos they license on the licensors’ websites. Visit the websites of these commissions.
4. Warning Signs of a Fake or Misleading License:
   -Broken link – Could have been copied from another site.
   -Licenses without numbers – Each license has a number.
   -Outdated, expired licenses – Also outdated at the casino.
   -Footage like “Fully licensed” – Lack of transparency.
   -License not valid in Canada – Red flag, stay away.
   
   If you encounter any of these issues, please exercise caution when dealing with the casino.

Which License Should You Trust as a Player?

As we mentioned above, gambling licenses do not offer the same level of security and oversight. Some are international gambling licenses, while others are Canadian online gambling licenses. Some have strict rules, while others are more lenient. We will try to explain which license you can trust at this stage.

A Strong Licensing Authority Does This:
The most secure licensing bodies regularly inspect casinos, have clear rules for AML and KYC, and direct the casino to work with specialized agencies for responsible gambling (GamCare, Responsiblegaming.org, RGC, CyberPatrol, GamBlock, Solid Oak Software, Net Nanny, and others). They take steps to resolve player concerns and warn the casino about them. Reputable payment methods agree to work with the casino based on this license. It carries out checks to ensure that players’ personal and financial information does not fall into the hands of third parties. Game providers also work with a trustworthy casino which has a strong license. The fair play of the games is controlled by the licensors or independent organizations (for example, eCOGRA).

In the previous sections of our review, we mentioned which commissions are strict and which ones are more flexible. You can review these sections again to determine which commissions are more reliable.

Which License to Choose as an Operator?

In our review, we have so far covered igaming licenses from a player’s perspective and given many tips. However, it is also useful to consider the other angle. The other side of the business is casinos. So, what should they look for when getting a license? Let’s start addressing this topic now.

B2C Operators (Casino and Sportsbook Brands):
B2C (business-to-consumer) interacts directly with players. Their licenses determine how they manage player funds, how they advertise their games, and in which geographies they can legally operate.

The key elements are:
Jurisdiction Scope: Determines which countries you will be open to and accept players.
Reputation: Licenses such as MGA, Ontario, and UKGC are more secure for players, providing the same trust in the casino.
Taxes: Directly affects casino revenues.
Marketing Restrictions: Markets with strict rules for casinos apply advertising and bonus rules.

Example: B2C operators targeting Europe may consider MGA, and those targeting only the UK may consider UKGC.
If you are targeting Canada, AGCO, Kahnawake, Curaçao, Anjouan, and Alderney are suitable.
If you are looking to reach emerging markets and crypto niches at a low cost, Curaçao and Anjouan may be worth considering.

B2B Operators (Payment Platform and Game Providers):

B2B (business-to-business) providers, i.e. companies that provide gaming and payment infrastructure to casinos, can also be sensitive about licensing. Here are the issues they pay attention to:

License Type: Some regions allow certain licenses.
Market Access: Some countries (markets) require suppliers to be licensed.
Partner Compliance: In highly competitive areas, B2C customers prefer licensed suppliers.

Example: A game provider looking to partner with institutions such as the MGA and UKGC should have a B2B license.

A newly established casino targeting crypto should also create a trustworthy impression when entering the market.

Regional Differences:

Europe:
-EU countries and the UK are heavily regulated.
-B2B and B2C licenses are generally mandatory.
-Popular licenses: MGA, Alderney, and UKGC
-Taxes and initial registration fees can be high.

Canada:

-Regulation and rules are state-level, not country-wide.
-AGCO is mandatory for B2C brands in Ontario.
-Kahnawake is a good alternative for Canada.
-B2B licenses are not yet mandatory.

International:
-Curaçao and Anjouan are often preferred due to their low costs.
-Startups and crypto-based casinos can choose different countries to test the market and themselves.
-Rules can be flexible in markets such as Asia, LatAm and Africa.

Final Thoughts: So, Which Licenses Truly Matter?

Choosing a license for a casino is more than a formality; it is almost a showcase and a trustworthy situation. The selected license changes market access, number of player and reputation in the right proportion.

Key Takeaways: If we summarize the most well-known licensing organizations in Canada;

MGA: Ideal for casinos that are growing and already have a well-known place in the industry.
AGCO: If your target audience is Ontario, we can say that it is a must.
Kahnawake: A Canadian-friendly license that does not target Ontario, with moderate control and acceptable costs.
Alderney: Provides high security at a high price. Its awareness is slightly lower.
Curaçao and Anjouan: Ideal for casinos that are new to the market and want to see themselves and get a license in a short time.

Why Informed Licensing is Important:

A secure license reduces legal risks, supports fair play, and eliminates payment issues. It adds reputation and players to the casino.
A wrong license means a bad impression and heavy fines.

If you, as a player, want to play fair, prevent your personal information from falling into someone else’s hands, and receive your winnings on time, you should pay attention to the license of the casino you spend time with.

As a casino owner, you may want to get a license quickly at a reasonable price and start operating immediately. However, a solid license helps you build a sustainable brand.