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Curacao VS MGA Online Casinos
iGaming Fans know that Curacao and Malta are the two main online gambling jurisdictions among casino operators.
Choosing the right license is an important step for every company that is in the process of establishing its online games library.
Not only providers, but also players should know more about the institutions that issue licenses to gaming sites. After all, we are talking about the security of their means of payment, personal data, as well as the legality of playing in a particular online casino.
Next, we will look at the pros and cons of obtaining a license in Curacao or Malta.
We will also discuss some details of the licensing process in these jurisdictions.
Malta Vs Curacao License - What Are The Features?
There are many barriers that stand in the way of iGaming business operators, especially smaller ones, in obtaining and maintaining a gambling license.
The licensing process is a kind of receipt by the provider of legal permission to operate and offer its gambling services to the public.
In some cases, there are geographic restrictions on a license from a particular institution. Moreover, the jurisdiction issuing online gaming licenses must be approved by local authorities.
When it comes to Malta Gaming Authority and Curacao licenses, everything is not the same here either.
Obtaining a license from the MGA is typically an expensive process that also takes some time (usually several months) due to the Mediterranean island country's strict gambling regulations.
This fact brings Malta licensing to the forefront when it comes to well-established, often large and financially stable gambling companies.
Curacao, on the other hand, is known for its inexpensive and simple licensing process, as well as more relaxed gambling laws. This makes the Dutch Caribbean island license the number one choice for those new to online gambling.
Online Casino Licensing Costs
To obtain a gambling license, the provider is charged certain fees. The cost depends on the jurisdiction and the type of application submitted.
Compared to Curacao, Malta generally has higher licensing costs:
- Curacao: A gambling website owner can choose this type of licensing if he is looking for a more cost-effective option. A Curacao gaming license can be obtained for just a few thousand dollars. In addition, there is a corporate tax of 2% and VAT (Value Added Tax) of 0%.
- Malta: The cost of obtaining an iGaming license from the MGA can range from $5,500 to $31,500, depending on the license type required and the services the future casino plans to provide. The casino provider will pay VAT of 18% and 35% respectively.
Due to its restrictions and good reputation, Malta is however considered a more reliable country for obtaining an online gambling license. Curacao, in turn, is considered a less trustworthy country due to low taxes and minimal legal requirements.
Players and partners take into account the reputation of the jurisdiction in which the company is licensed when deciding whether to deal with a particular online casino. Therefore, a license issued in Malta is valued higher than a license from Curacao.
Procedure For Obtaining A License
Of course, Curacao and Malta are two different jurisdictions with different legislation. Accordingly, the procedure for applying for and obtaining a gambling license differs between them.
Also, the time to obtain a license often varies and depends on the organization issuing the license and its type:
- Curacao: It may come as no surprise, but the process for obtaining an iGaming license in Curacao is faster than in Malta. The Curacao Internet Gaming Association or CIGA offers an easier application process. A casino operator can receive the desired license in either 2 weeks or several months, depending on the complexity of the application.
- Malta: To obtain a license for an online casino in Malta, an operator often needs at least several months. The Malta Gaming Authority carries out a thorough review of key indicators such as financial statements, the business plan and compliance procedures. Once the jurisdiction is satisfied that the company meets all necessary requirements, the license can be issued.
However, you should not think that those online casinos that have a Curacao license are illegal or not serious. To retain the right to issue a license to virtual gambling houses, any jurisdiction must be approved at the state level.
Casino operators, in turn, must comply with strict compliance criteria in both jurisdictions in order to maintain a gambling license. These standards cover periodic financial audits and audits of compliance with the requirements and laws of the jurisdiction.
In addition, the casino operator must take measures to prevent money laundering, fraud, theft of user personal data and underage gambling.
Important: Starting in the summer of 2023, the jurisdiction of Curacao is preparing changes in legislation regarding gambling.
The main goal is to create a safer and more reliable gaming environment for players. In the near future, Curacao legislation will impose strict rules on responsible gaming on operators.
These measures are aimed at preventing problems associated with gambling addiction.
Curacao Gaming Authority: Pros and Cons
In the past, it was one of the leading countries that began to license online casinos.
Today, Curacao is still the leader in all forms of online gambling. Many vendors offering offshore gambling require a Curacao license to authenticate their operations.
To obtain this license, the operator must contact the Minister of Justice of Curacao. There are also 4 organizations that the Justice Minister has authorized to issue a license.
They have the right to do this in accordance with the Master License that each of them holds.
Curacao Licensing Advantages:
- Prestige. As one of the founding jurisdictions for online gambling rules and regulations, Curacao enjoys great prestige.
- No restrictions on game developers. Curacao does not restrict casino providers to certain software developers. This is a big plus for gaming site owners. But it may still be unsafe for users.
- One license. To start an online casino, you only need to apply for one license, regardless of the type of gambling that will be offered. This greatly simplifies the process of obtaining a license.
- Quick start. The application process takes less time. This means that an online gaming library operator can start working within a short time, which is competitively significant.
Curacao Licensing Disadvantages:
- Loyalty and minor restrictions. The authorities of Curaçao have already begun innovations in legislation. But they still have a lot of work to do to restrict licensees from engaging in illegal activities such as money laundering schemes. This has given the license a bad reputation over the years.
- There are countries with limited access. The license restricts online casino owners from operating in certain countries. The restriction primarily applies to the United States. Before applying for a license, it would be best for the operator to consider the list of approved countries.
Malta Gaming Authority or MGA - Pros and Cons
For online casinos looking for a quality and reputable license to operate, Malta is the right place.
Unlike the Curacao sublicense, which is suitable for all types of online gambling, in Malta, there are 4 different classes of licenses. These classes are focused on different types of online casino games.
To improve the quality of casino provider audits, MGA has various structures such as Audit Committee, Board and Executive Committee.
For many casino sites, obtaining an MGA license is even a mandatory requirement.
Malta Gaming Authority Licensing Advantages:
- Regular audit. To maintain an MGA license, casino operators are required to submit their financial statements for regular review by the Audit Committee.
- Measures against money laundering. Operators licensed in Malta must demonstrate measures have been taken to prevent money laundering.
- Licensed game providers. Operators wishing to obtain a license from the Maltese jurisdiction must only use software from licensed and recognized developers. Failure to comply with this requirement will result in license revocation.
- Certified payment methods. To enhance player safety, MGA only works with online casino operators that use trusted payment methods.
Malta Gaming Authority Licensing Disadvantages:
- The MGA license is not accepted in some countries, for example in the UK.
- In terms of software and hardware, the operator must have a physical location in Malta.
In general, Malta and Curacao are widely recognized among online casinos internationally. Therefore, licenses from these two jurisdictions are a common feature of most gaming sites that you access.
Curacao Vs MGA License: Which Online Casino Should You Play At?
The purpose of any casino licensing is to ensure that operators adhere to strict rules that promote player protection and transparency. This helps maintain the integrity of the gambling industry.
By obtaining a license, operators undertake to comply with these standards and provide their customers with a safe and fair gambling environment.
However different jurisdictions do not have the same laws and rules for issuing a license. Therefore, depending on the goals and focus of gambling sites, they choose a Curacao or MGA license.
Thus, if you are waiting for more loyal rules for using the casino website, higher bonuses and soft bonus conditions, as well as minimum requirements for taxation of your winnings, you should choose an online casino licensed from Curacao.
If safety and strict adherence to all rules come first for you, then you will definitely enjoy playing on online gaming platforms with MGA licenses.