The choice of the right jurisdiction to host your online casino is based sometimes not on the most obvious parameters (simple procedure for obtaining, low prices), but also on other important factors.
If we talk about the UK, then one of the key parameters is the ability to attract numerous solvent users from the largest countries of the European Union. Now it is Great Britain that takes the first place in the market of licenses for which Internet institutions operate. And this is not surprising, because the British are very gambling people who are willing to spend part of their high salary on the game at very high rates!
Interesting fact! According to recent polls, over 70% of England’s residents play online games.
Taking into account a considerable percentage of income from online games in the state’s economy, back in 2014, a law was introduced in the country to determine the taxation of the game operator at the players place of residence. Thanks to this, the UK was able to reduce tax losses from the outflow of money to offshore.
As soon as this law was passed, all owners of gambling platforms wishing to advertise or continue to work in the field of online casinos had to get a license and start paying tax.
The licensing authority in the country is the Gambling Commission, which is involved in the issuance and revocation of licenses. In addition, the Commission checks the operation of online casinos for illegal operations.
Benefits of licensing in Britain:
● The world center of the gaming industry, the highest status;
● Increased attention to protecting user rights, which affects the level of trust on the part of players;
● Full assistance from the state;
● The official permission of the gaming Internet industry;
● A huge number of players for whom visiting a casino with a different jurisdiction is prohibited;
● Low tax rate;
● Exemption from many licensing costs and fees.
Form of incorporation of a company:
To obtain a license, the owner of the institution must register a British legal entity. In the state, the most popular form of company organization is LLC. This form allows you to get away from subsidiary liability.
One of the features of British law is the presence of a large number of agreements on the avoidance of double taxation. Due to this, you can use reduced tax rates on income, dividends and so on.
Interest Rates: License Fees
In the country, licensing rates are tied to the size of the business gross income, and also depend on the type of activity. Of course, the fees for large online casinos are substantial, and sometimes reach up to £ 200,000 a year, but if we are talking about a new institution, then there will be a 25% discount for the first year.
If you need to calculate the amount of the license fee in the UK, then just go to https://secure.gamblingcommission.gov.uk/ and use the calculator. In addition, the application for license registration is filed here, the initial payment is also paid here. In addition to the license fee, there is a tax on rates of 15%.
He is 19%. The British government is also trying to lower tax rates annually. Although, if we talk about the EU countries (the United Kingdom has withdrawn from their membership), then for them this percentage is considered quite small. This is an analogue of domestic income tax, in addition, the amount of payment is reduced by the amount of costs. A license can be obtained quite quickly, although it is valid for only 12 months, so you will have to regularly get it again.
Minimum authorized capital
It is 50,000 pounds. This amount is considered the minimum for any registration procedure.
Do not forget that British laws do not envisage for the mandatory formation of the authorized capital immediately prior to registration, if you intend to register LLC.
Protecting players’ personal data
Please note that if you want to have British jurisdiction, you will need to certify all the software. Moreover, it is necessary to install special cryptographic protection utilities on it.
All online casino software should monitor the collection and transfer of user data. At the same time, the transfer of the user’ information, without their consent, or without observing appropriate protective measures, is prohibited.
Other requirements without which the institution cannot be licensed:
● Timely provision of full reporting and other information specified during the registration of the license;
● Audit of the organization’s activity;
● Providing upon request data on the owners of the casino, or its shareholders;
● Availability of licensed and certified software and a random number generator;
● Also, on the official website of the online casino, you must provide information about responsible gaming, and warn users about the dangers of gambling addiction, and provide several links to communities that help treat gambling as well.
Contacts of the authorized body:
Address: United Kingdom, Birmingham, B2 4BP, Victoria Boulevard, home of Victoria Boulevard.
Contact number: +44 121 230 6666