iGaming Startup Success: Navigating Legal Challenges with DSTGAMING

The iGaming industry has grown rapidly in the last couple of years, and many entrepreneurs now seek to get off the ground with their platforms. However, entering this space is not only about an eye-catching website or how you attract players but also about understanding the legal framework in which online gaming is encased. DSTGAMING makes these legalities more transparent so you can start on the right foot.

Basics: Licensing Requirements

Licensing is the backbone of any iGaming company. It can only function legally or gain users’ trust with adequate licenses. Licenses are issued by regulatory agencies in various regions; each license is distinct and has its own set of rules, standards, and fees. Your decision about which license to apply for largely depends on your target market since each jurisdiction impacts your credibility, costs, taxes, and ability to comply.

Malta, Curacao, Gibraltar, and the United Kingdom are the main popular licensing jurisdictions. MGA and UKGC are the regulating authorities. They are famous for their high regulatory standards, which are ideal for setting up a respectable business. Curacao is a paradise for low costs and rapid approval.

If you are unsure which jurisdiction may be more suitable for your business needs, our article on licensing and jurisdictions explains it in great detail.

Choosing the Right Business Structure

As you begin planning your new iGaming business, one of the decisions you must make is the structure of the business. The business structure can affect your responsibilities under the law, what you will pay in taxes, and your future growth as a company. Below are some of the most common business structures:

•         Limited Liability Company (LLC): To the more modest and middle-sized iGaming ventures.
•         Public Limited Company (PLC): Select when you wish to list or when you have a lot of investments to raise.
•         Offshore Company: Typically selected to take advantage of tax benefits in the Isle of Man or Gibraltar.

The type of business significantly affects tax liabilities and working operations. To learn more about which type is better, see our page on business services to find profit-above-all styles that can be used for compliance purposes.

Regulatory Compliance and Legal Requirements

Once you have your license in place and have settled on a form for your company, the next area you’ll want to cover is regulatory compliance. Compliance goes beyond being law-abiding and also concerns safeguarding the brand image and the comfort of users.

To secure your platform, you will require solid Know Your Customer (KYC) and Anti-Money Laundering (AML) processes. These are important to avoid all fraud that might occur and ensure your integrity on the platform. Organizations, such as the Financial Action Task Force (FATF), provide a framework for AML best practices, and thus, you must keep track of such changes to avoid claims in court.

Data Protection Laws You Need to Know

Any iGaming website will have quite a lot of user data. Therefore, protecting such data is also an important concern. If you are processing data of European Union-based customers, then you need to be GDPR compliant. The General Data Protection Regulation (GDPR) is very strict about some aspects of the collection, storage, and processing of personal data.

To ensure that you are in GDPR compliance, follow these simple steps:

•         Obtain explicit consent from users.
•         Encrypt any sensitive information.
•         Continuously carry out audits and risk assessments.

Failure to comply with GDPR can lead to an administrative fine of as much as € 20 million or 4% of your annual revenue. For the States, it may include CCPA for operators. DSTGAMING offers consulting services on data protection regulations.

Taxation Considerations

Of course, a good knowledge of taxation is an essential component of any iGaming business. You are likely to find that your tax obligations depend primarily on where your business is registered and where your players are. Many operators, therefore, opt for offshore incorporation and take full advantage of the more favorable tax rates such jurisdictions offer.

For example, a corporate tax rate in Malta is between 5% and 35%, depending on the peculiarities of your business. Curacao is much more mildly scaled for tax rates than the rest, so they’re becoming popular with smaller startups.

However, the tax rate is just one factor. Regulatory stability and brand image are also considerations when choosing a jurisdiction. 

Responsible Gaming: The Ethical Side of iGaming

Responsible gaming policies are more than just a bureaucratic checkbox to tick off. Instead, you have to earn the trust of the players. Licensing authorities have mandated operators adopt tools to help prevent problem gambling. Some include information on gambling risks, self-exclusion allowance, and deposit limits.

A well-thought-out, responsible gaming framework brings you closer to meeting regulatory requirements and increases your customers’ loyalty. For more details on why responsible gaming is essential, refer to the National Council on Problem Gambling report.

At DSTGAMING, we are aware that responsible gaming is one of the main requirements of a successful iGaming platform.

Marketing Regulations and Limits

Marketing an iGaming platform presents its own challenges. Advertising is extremely regulated across most markets, and non-compliance results in serious penalties.

For example, the UK has its Advertising Standards Authority, which disciplines advertisement guidelines to ensure that they do not harm vulnerable audiences. It’s very important that your marketing activities work within such rules to avoid what might happen later.

You should also know the laws on affiliate marketing. Transparency is essential when establishing terms and conditions for your players, so failure to comply with these might result in fines or even the loss of your license.

Conclusion: To prepare for success with DSTGAMING

Running an iGaming business can be advantageous, but navigating the legal waters certainly isn’t child’s play. Decisions about choosing the right license and jurisdiction and complying with changing regulations all factor into a platform’s bottom line.

We are here for you every step of the way. Whether you are just starting to plan or looking to grow an existing entity, our expertise will guide you in building a compliant, successful iGaming business.

Ready to turn your iGaming vision into reality? Let DSTGAMING help you do it compliantly, successfully, and ethically.