Offshore gambling licenses are in their prime this year. Entrepreneurs choose them for the striking benefits such as a quick licensing process, lower fees, and light taxation. However, obtaining such a legal permit can also have its flip side. What are the possible complications of securing a gambling license offshore that you must be aware of in 2025?
Among the key jurisdictions that offer an offshore gambling license to company owners are Curacao, Anjouan, Costa Rica, and Malta. Curacao, among others, is the most widespread type of online gambling license due to its fast and straightforward registration process. Most of your favorite online gambling platforms probably hold authorizations from the Curacao regulatory authority.
However, this is not the only online gambling license worth your attention. Costa Rica, for instance, is the latest highlight of the industry due to the flexibility it provides with one legal permit. If you already own or are opting for an online gambling license in Costa Rica but want to combine several business models within one company, applying for a Costa Rican crypto license won’t be a hassle. This jurisdiction presents a perfect licensing opportunity for crypto casinos and Web3 projects.
2025 is marked by several crucial changes in offshore online gambling licensing. Notably, Curacao, which received previous criticism for its weak regulatory oversight, has started to actively work on increasing and expanding its compliance standards. It will likely implement more strenuous protocols for AML and KYC compliance in the near future.
Anjouan, in turn, has introduced a comprehensive and cost-effective gambling license, which quickly gained attention from entrepreneurs due to the country’s zero tax regime on Gross Gaming Revenue (GGR). In addition, it offers a faster application review process of around 2-4 business weeks. Such incentives are aimed at attracting more foreign investors into the country.
The costs and licensing fees associated with offshore gambling licenses are famously lower than those in traditional onshore jurisdictions. The cost normally consists of company incorporation fees, licensing fees, and additional expenses such as notary fees and the services of a lawyer, if required. For example, in Anjouan, the licensing fees start at around 5,000 EUR. The exact price to license a gambling company depends on its type and the scope of services involved.
Offshore countries are known for their shorter licensing process as compared to traditional jurisdictions. Depending on the workload of the regulator, the application review process can take around 2-3 weeks. At the same time, you must also take into account the preparatory process, which can be sped up if you are working with a lawyer.
An experienced legal professional can prepare the entire set of documents for company formation and licensing and meet other crucial regulatory requirements on your behalf. With most offshore jurisdictions, the company formation and online gambling licensing can even be done remotely, with the help of your legal representative.
Even though offshore jurisdictions are generally light and lenient in their requirements, a certain degree of due diligence still exists. For instance, in Anjouan, licensees under the Betting and Gaming Act of 2005 must report suspicious activities, prevent money laundering, protect the vulnerable categories of players, and submit regular reports to the local regulator, ABGB. Compliance with AML/CFT regulations includes staff training, customer identification, financial record-keeping, and detecting suspicious behavior. In addition, an AML/CFT officer must be appointed to oversee compliance and reporting.
In Costa Rica, in turn, due diligence obligations include AML/CFT compliance, KYC procedures, data protection, and corporate governance. Operators must maintain a physical office in Costa Rica, submit financial reports, and ensure consumer protection through secure payment systems and reputable software providers. While regulation is lenient, adherence to these obligations is necessary for operational integrity.
A corporate bank account has always been a necessity for gambling businesses of all kinds. However, for those entities licensed in offshore countries, securing a bank account can be challenging due to the low level of trust that banking institutions have in such companies. Therefore, online gambling companies registered and licensed offshore might need to prove their transparency and trustworthiness before obtaining a bank account. Luckily, there are legal specialists who can simplify this procedure significantly by functioning as intermediaries between the entrepreneur and the bank.
For online gambling businesses specifically, offshore regulators put forward sets of stringent technical and cybersecurity requirements. As for the basics, every licensee must demonstrate proof of fairness of all the games and services it’s planning to offer. It can be presented in the form of a Random Number Generator (RNG) certificate. There must also be clear safe gambling guidelines accessible to all visitors of the platform.
In separate cases, a thorough technical audit of the platform made by a specialist can be obligatory. A tech specialist must assess the cybersecurity and fairness measures taken by the licensee and submit a report to the offshore country’s regulator.
Offshore gambling licenses are gaining momentum as more and more entrepreneurs opt for efficient solutions with light regulatory regimes and budget-friendly fees. While offshore jurisdictions present a great licensing opportunity for all kinds of online gambling projects, it’s important to mind the potential challenges associated with them. The best way to safeguard your business and maintain a clear reputation is to have a reliable legal specialist support your company at every stage of the licensing proc