A US online gambling license can cost up to $4 million plus additional six-figure annual fees. Licenses in other jurisdictions can be acquired for significantly cheaper.
In this article we’ll review the costs of popular international licenses, as well as those for regulated US states where gambling is legal. We’ll also cover what these licenses comprise and the factors influencing their cost. Finally, we’ll tackle any additional expenses to give you a complete estimate of how much opening an online casino will set you back. Let’s begin.
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What is a gaming license?
An online gambling license is a critical legal document that allows a business to offer online gaming services within specific jurisdictions while complying with their rules and regulations.
It gives online casinos access to a market and enables them to partner with payment providers, software developers, and other key service providers essential for running a successful online casino. It’s also a sign of credibility, as it shows players that the platform is trustworthy and subject to oversight.
Additionally, a gaming license ensures fair play, as it guarantees the platform’s games use a certified random number generator (RNG) to produce results. Therefore, the player’s gaming experience is fair and based on luck, albeit with a slight house edge to the casino.
Though the gist is generally the same, all licenses vary. The main differences lie in the jurisdictions they cover, the types of gambling activities they sanction, and the requirements set for obtaining them, including the fees and taxes casino owners need to pay.
Who needs an online gambling license?
Any company looking to legally run an online gambling platform needs a license. Even though we’re here to primarily cover online casinos, they are not the only ones that require a license as reported by Casino Apps. Here’s a quick overview of the main types of platforms that require a gambling license:
Online Casinos | Online Sportsbooks | Online Lotteries | Online Poker sites | Online Bingo
In the US, a company that wants to run an online casino can do so legally only in states where online gambling is legal. It also needs to obtain a license from the official regulatory body in each state where it aims to operate because the US doesn’t have a legal online gambling market on the federal level.
How much does an online gambling license cost in the US?
As you’ve seen, every state in the US where gambling is legal has its own authority for issuing a gambling license. Let’s examine how this works for each of them.
Connecticut
Connecticut’s case is fairly simple because online gambling is tied to a compact between the state and two tribes, the Mashantucket Pequot Tribe and the Mohegan Tribe. However, this compact also affects the Connecticut Lottery Corporation. The licensing authority is the Connecticut Department of Consumer Protection (DCP).
According to the state laws, these two tribes and the Lottery Corporation hold master wagering licenses. Separate online gaming operator licenses are awarded to the partners of the master licensees, which allows them to offer online casino games, poker, and sports betting. The costs placed on online gaming operators are:
• The initial license fee is $250,000;
• The annual fee is $100,000;
• Online casino revenue is taxed at 18% for the first 5 years (from 2021), then 20% from 2026.
Delaware
Delaware has a closed market, where online gambling is run by the state’s three land-based casinos (Delaware Park, Harrington Casino & Raceway, and Bally’s Dover Casino Resort) in collaboration with the Delaware Lottery. There are no traditional gambling licenses, and the controlling body is the Delaware Division of Gaming Enforcement (DGE).
Delaware still has licenses for technology providers, where the initial fee is $4,000. Businesses that offer services like customer support and marketing to online gambling operators are also licensed, and the fee is $2,000.
Michigan
Michigan has a large market and a more standard licensing system. The body responsible is the Michigan Gaming Control Board (MGCB). There are two main types of licenses: for internet sports betting operators and internet gaming operators.
It’s also worth noting that supplier licenses are offered to those companies that provide services to gambling operators, whereas occupational licenses are awarded to individuals in the industry, such as managers and dealers. Internet gaming operators have to cover the following costs:
• The initial license fee is around $100,000;
• The annual fee is $50,000 for the first two years;
• Online casino revenue is taxed at a graduated rate, from 20% to 28.5%.
Nevada
Nevada has a long history of gambling and a strict regulatory framework. However, its online market is a bit limited, and only online poker sites are allowed to operate with an interactive gaming license, which costs $500,000 initially and $250,000 annually. Taxes are set at 6.75%.
The licensing body is the Nevada Gaming Control Board (NGCB), and the other two types of licenses offered are for manufacturers of interactive gaming systems and companies offering services to gaming operators.
New Jersey
New Jersey is the pioneer in online gambling, having regulated the market in 2013. The licenses are issued by the New Jersey Division of Gaming Enforcement (DGE), and they can be obtained by land-based casinos that meet the requirements.
There are two main types of licenses: the internet gaming permit and the sports wagering license. The former is tied to Atlantic City casinos that want to offer online casino games, while the latter is only for online sports betting. To obtain an internet gaming permit, an operator needs to pay:
• The initial license fee, which is $400,000;
• The annual fee of $250,000;
• Online casino revenue taxes that are set at 15% + 5% investment alternative tax or 2.5% community tax.
Pennsylvania
Pennsylvania is one of the biggest online gambling markets in the US and features a license system where only existing land-based casinos can apply to offer online casino games. They need to acquire an interactive gaming certificate to offer online casino games, online poker, and online sports betting. The regulator is the Pennsylvania Gaming Control Board (PGCB). Cost include:
• The initial fee, which is from $4 million to $12 million depending on the time of the application and covered gambling verticals;
• The renewal fee of $250,000, which is paid every 5 years;
• Online casino revenue tax of 16% (previously 54%).
Rhode Island
Rhode Island is one of the latest states to regulate online gambling, having done so in March 2024. All activity is operated by the Rhode Island Lottery in partnership with the two land-based casinos based in the state. Independent operators cannot apply for a license. Besides the Lottery, the other regulator is the Department of Business Regulation (DBR).
There are no standard licenses for land-based operators that would permit them to offer online services, yet there are for the companies that seek to provide services to the casinos and the individuals working for them.
West Virginia
To start an online casino in West Virginia, an operator must obtain an interactive gaming operator license. The West Virginia Lottery Commission is the state’s regulatory body, responsible for providing these licenses and ensuring operators adhere to the rules. The state also provides licenses for sports wagering operators, suppliers, and management service providers. Consider the following:
• The initial license fee of $250,000;
• The renewal fee of $100,000, paid every five years;
• Online casino revenue, which is taxed at 15%.
Factors affecting the cost of online gambling licenses
The online gambling license cost is never straightforward. Several factors affect the final price, including:
Jurisdiction: Every country or state has different rules, so the price of a license will be affected.
Type of license: The type of license desired affects the costs involved. All-inclusive licenses (sportsbook, lottery, etc.) are typically more expensive than casino-only licenses.
Application process: Providers typically have to pay a registration and processing fee to initiate the application. The fees vary in size depending on the process.
Additional legal processes: Providers might need to consider obtaining legal help to comply with local laws, which will result in additional costs to the final tally.
What do online gambling licenses cover?
A license for an online casino covers more than just the basics. Here’s what the hefty online casino license cost typically includes:
Legal authorization: The primary purpose of a license is to provide legal authorization to a casino to operate its service within a particular jurisdiction. In other words, without the permit, your online casino will have no legal right to operate, which will damage the reputation of the platform, result in potential fines, and put off players.
Player protection: A proper license requires the casino to offer fair games with RNG algorithms that randomly determine outcomes. As a result, players are guaranteed a fair shot at winning real money. Licenses also require the site to have responsible gambling tools and practices, while player funds must be kept separately from operational funds.
Security standards: The site must use strong encryption protocols, implement strict access controls, and maintain secure servers. Moreover, a license requires the casino to complete regular security audits to ensure everything is up-to-date.
Anti-money laundering (AML) compliance: Online casinos are required by regulatory bodies to verify player identities through the know-your-customer (KYC) procedure, monitor transactions, and report suspicious activities. These are measures to curb underage gambling and prohibit money laundering.
Deposit and withdrawal regulations: Licenses also determine which payment methods the casino can offer. They set requirements for transaction security, processing times, and verification procedures. For example, the UKGC prohibits the use of credit cards.
Dispute resolution: The regulations require the casino to have an internal system for handling player complaints. Moreover, they ensure that an independent third party can act as an arbitrator if issues cannot be handled internally.
Regular audits and compliance checks: Once a license is obtained, it doesn’t stay with the casino for as long as the owner has paid for it. The platform is still subject to game and financial audits and compliance checks that ensure it continues respecting the rules. Licenses must be renewed periodically.
Advertising and marketing restrictions: Some online casino licenses also impose strict rules regarding the way brands can conduct marketing campaigns. These regulations are set in place to protect minors, promote responsible gambling, and follow advertising standards.
Other jurisdictions come with independent gambling authorities, some of which operate in several countries. Here’s an overview of the most prominent ones:
| Authority | Jurisdiction | Regulation | Characteristics |
| UK Gambling Commission (UKGC) | UK | Tier 1: Very Strict | Enforces responsible gambling, strict compliance, and heavy penalties |
| Malta Gaming Authority (MGA) | EU | Tier 1: Very Strict | Ensures fair gaming, anti-money laundering measures, and high security standards |
| Kahnawake Gaming Commission (KGC) | Canada | Tier 2: Moderate | Supports North American operators and promotes fair gaming but is less strict about enforcement |
| Curaçao eGaming | Global | Tier 2: Moderate | Cost-effective, faster approval process, fewer player-protection measures, linked with crypto casinos |
| Anjouan Offshore Financial Authority (AOFA) | Global | Tier 3: Lenient | Low-cost, quick approval, but minimal player protection and regulatory oversight |
Online gambling license costs outside the US
Fees differ outside the US — in fact, they depend on jurisdiction constraints, regulatory frameworks, and market and compliance requirements. In most cases, there’s also a fixed registration fee and an annual renewal fee.
We’ve prepared a rough guide that will give you a better knowledge of how each international license works and how much it might cost you. The final price will depend on the services you’ve selected, so you’ll need to consider your needs and check the official numbers the regulatory body offers to get the full picture.
UK Gambling Commission (UKGC)
The UK has a very strict gambling market, with unique rules imposed by the UK Gambling Commission. For example, operators are required to participate in the responsible gambling program GAMSTOP. All operators on the UK market need to obtain this license to provide their services in the country.
‣ Application fee: Ranges from £2,500 to £60,000, depending on the type and scale of gambling activities.
‣ Annual fee: Varies between £3,000 and £800,000, contingent upon the business’s gross gambling yield.
‣ Expected tax: 21% of gaming revenues.
Malta Gaming Authority (MGA)
The MGA is a strict regulatory authority that offers licenses for gambling companies that operate throughout most of the EU. The license procurement process is often long, lasting for several months. However, operators get to hold them for ten years.
‣ Application fee: Approximately €5,000.
‣ Annual license fee: €25,000.
‣ Expected tax: Between 1.25% and 4% of gaming revenues.
Kahnawake Gaming Commission (KGC)
The KGC from the Canadian Mohawk Territory of Kahnawake is one of the oldest and most respected gambling regulators in the world, having been established in 1996, in the early days of the online gambling industry.
‣ Application fee: Around $25,000.
‣ Annual fee: Approximately $10,000.
‣ Expected tax: None.
Curaçao eGaming
Curaçao eGaming offers some of the most popular licenses for offshore casinos, primarily due to its wide acceptance and somewhat easy application process. Costs are also among the lowest. Unlike many other bodies, Curaçao eGaming offers a single license that covers all gambling verticals.
‣ Application fee: €4,600.
‣ Annual fee: €25,000–€49,000.
‣ Per domain fee: €250.
‣ Expected tax: 2% of gaming revenues.
Anjouan Licensing Services
The Anjouan gambling license is one of the newcomers on the market, but it has gained some popularity in recent years. Issued by the Anjouan Offshore Financial Authority from the Comoros Islands, it is one of the easiest licenses to obtain due to its lenient regulatory requirements.
‣ Application fee: Approximately $10,000.
‣ Annual fee: Around $15,000.
‣ Expected tax: None.
Canada
Canada has a system similar to the one in the US, meaning provinces and territories have their own regulatory bodies and rules surrounding online gambling. A legal market exists in Ontario, Quebec, Manitoba, and British Columbia.
Ontario is the only province that has online casinos operated by private companies. At first, this province had only PlayOLG, an online casino and sportsbook operated by the Ontario Lottery and Gaming Corporation. As of 2022, though, the market has opened up to other providers. It is now regulated by the Alcohol and Gaming Commission of Ontario (AGCO), its official license-issuing body. The annual fee is $100,000 per site.
Australia
Online casino gaming in Australia is federally prohibited by the Interactive Gambling Act 2001. Online bingo, online lotteries, and online sports betting are legal.
There’s also the unique case of the Northern Territory, where you can still apply for an internet gaming license via the Racing Commission (NTRC) that would allow you to operate certain gaming products, but only for players outside Australia. This comes with no fee besides a 4% negotiated tax rate.
Additional online casino costs
Although among the largest, the license is just one of the expenditures you need to incur to start an online casino. Other expenditures range from software and payment systems to staffing and marketing. Let’s break them all down, but bear in mind that these are just estimates:
| Expenditure | Estimated Cost |
| Casino game software | $10,000 – $150,000 |
| Payment providers | $1,000 – $5,000 |
| Security systems | $1,000 – $10,000 |
| Customer service | $3,000 – $10,000 per month |
| Web hosting | $300 – $2,000 per month |
| Website development | $5,000 – $50,000 |
| Marketing & advertising | $10,000 – $200,000 per month |
| Affiliate software | $1,600 per month |
| Miscellaneous costs | $2,000 – $10,000 |
| Office utilities & rent | $5,000 per month |
As with every business, people need to be involved, and they need to be paid for their work. Here are the standard positions to consider and their annual salaries (keep in mind that some need to be filled by multiple people):
| Role | Salary Range |
| Chief executive officer (CEO) or founder | $100,000 – $200,000 |
| Chief technology officer (CTO) | $90,000 – $150,000 |
| Chief Financial Officer (CFO) | $80,000 – $130,000 |
| Chief Technology Officer (CTO) | $80,000 – $120,000 |
| Legal advisor | $70,000 – $120,000 |
| Game developer (for internal game development) | $60,000 – $120,000 |
| Security analyst | $60,000 – $110,000 |
| HR manager | $60,000 – $90,000 |
| Data analyst | $60,000 – $90,000 |
| SEO Specialist | $50,000 – $90,000 |
| Affiliate manager | $50,000 – $80,000 |
| Graphic designer | $40,000 – $75,000 |
| Copywriter | $40,000 – $70,000 |
| Accountant | $40,000 – $60,000 |
| Customer support agent | $30,000 – $50,000 |
How to get an online gambling license
Acquiring an online gambling license is a multi-step process that requires careful planning, compliance with regulations, and financial investment. Here’s a detailed outline of what you need to do:
Choose a licensing body:
Research different licensing bodies based on your budget, target market, and compliance requirements. Consider tax rates, renewal fees, and player protection rules.
Register your company:
Establish a legal business entity in the jurisdiction where you’re applying, adding the necessary designs and trademarks.
Develop AML and KYC policies:
Prepare these policies in advance, and decide how you’ll conduct audits and prevent underage gambling.
Prepare the documentation:
Obtain the documents you need for the application (i.e., director background checks, bank statements, security certifications) and the funds required to pay the fees.
Apply for the license:
Submit your application if you’ve gathered all the required documents and information.
Wait and follow the process:
The process for obtaining a license is long, so prepare to wait for several weeks or months, depending on the type of license you’re getting.
Online gambling license cost statistics
I’ve gathered some interesting statistics and figures about the costs of online gambling licenses:
◘ Pennsylvania charges the highest initial license fees for online operators in the US by far. They are between $4 million and $12 million. The cheapest initial costs are in Michigan, set at $100,000.
◘ Statista data shows that Michigan has the steepest taxes on online gambling revenues, set at 20% to 28%. It’s also the only state with a graduated tax rate.
◘ Connecticut mandates a $250,000 initial licensing fee for online gaming operators partnering with tribal entities.
◘ New York, New Hampshire, and Rhode Island impose the highest tax rates on online sports betting revenues at 51%.
Conclusion
The online gambling license cost is the most important factor to consider when opening a new online casino; it sets the foundation for your operation, allows you to attract new players, and represents your first significant investment. Hopefully, the information provided in this guide will help you estimate just how much this expense will be.
However, if you have a specific license in mind (or even several), it’s still important to check the latest information coming from the official regulatory bodies. Moreover, you should seek legal and professional advice if you’re serious about starting the process soon.
FAQs
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References
– How Much Does It Cost to Start an Online Casino? (Scaleo.io)
– How Much Does It Cost To Get an Online Gambling License in 2024? (PlayToday)
– Compare Online Gaming Licenses: Costs, Processes, and Requirements by Jurisdiction (GBO)
– Do I need an online gaming license? (IDnow)
– UK Gambling Commission (Gambling Commission)
– Malta Gaming Authority (MGA)
– Curaçao eGaming (Curaçao eGaming)
– Kahnawake Gaming Commission (KGC)
– Anjouan Gambling License (Anjouan Gaming)
