Traditional and online gambling has proven to be a lucrative business. In Eastern Europe, there are several rules and regulations that you need to be aware of. Gaming licensing can be a bit tricky to procure if you’re not aware of these. That’s why it’s important that you need to learn the different aspects of getting these licenses in key countries such as Romania, Montenegro, Serbia, and the Czech Republic.
It’s true that absolutely anyone can put up a company and organize gaming in Romania. It’s also important to note that the State is in charge of the regulation and approval of organizers who are legally registered and licensed to conduct these games in the country, according to the Romanian gambling laws. A Romanian bank account should also be opened so that players’ deposits can be stored. Keep in mind that a centralized report is expected to be summarized daily in regards to finances. Data should be available for a total of 5 years.
As such, there are two different types of gaming license in Romania. The Class 1 License is for operators who conduct their games online and have direct contact with the players themselves. The Class 2 License, on the other hand, can is granted to online operators, software providers and affiliates, including test labs and even traditional operators.
Fees for a Romania license are different from each other. Obtaining a Class 1 license could cost anywhere from €6 000 to €120 000 and a fixed €6 000 for Class 2 licenses. These are valid for 10 years and paid annually, with taxes coming in at 16% of the operator’s income, and should not be less than €100 000. The minimum value of the capital, both subscribed and paid up, comes up to about €216 000.
For cruise ships and tourist spots and resorts, however, temporary licenses are granted for a period of three months
Key points for obtaining licenses in this country include the affordability of licenses and taxes, and separate licenses for each gaming type. In 2006, gambling was considered legit with the launching of the commission on e-gambling in Montenegro. However, licenses granted in Montenegro are not included in the UK Gambling Commission whitelist, which is a list of trusted licenses.
What an operator needs to do to be granted license in this country:
- Open an LLC or a joint stock company
- Secure a bank account in Montenegro
- Payment for your license type, costing you from €15 000 to €20 000
Just be prepared to pay more than the usual gaming licenses in other countries, especially if you plan to have different game types. You are expected to pay and obtain a separate license for each type.
One of the most important point you have to remember when it comes to gaming licenses in Serbia is their rigid hardware and software requirements. This mostly stemmed from Serbia being known as the “illegal gambling Paradise”, which does not paint a pretty picture of gaming in the country. The Games of Chance Act was established in 2012, curtailing illegal gambling including those operated online.
Foreigners who plan to obtain licensing in Serbia must ensure that they have a Serbia-based company and servers. They must also comply with the €150,000 in a Serbian bank, aside from the €10,000 minimum daily risk deposit. All information, from players to every transaction, should be stored for 5 years.
An advantage to securing a Serbia license is the low tax compared to other countries in Eastern Europe. It’ only 5% of GGR, with a minimum of €7 500 monthly, plus the €2 500 monthly fee paid by the operator.
When it comes to advertisements, standard limitations and laws apply. It’s important for the operator to set up a warning that those below 18 years old are not allowed to participate in such games
When it comes to paying taxes for gaming in this country, high taxes are most often the aspect that turns some operators away. It’s a mind-blowing 23% of the GGR, compared to the mere 5% of Serbia. For Czech-based operators, they must comply with payment of income tax which comes to about to 19% of the net revenue.
The €200 basic license is valid and renewed every 6 years. Online gambling operators or organizers should have a €1, 1 million deposit. If you’re looking into being a full-service gambling operator, it’s essential that you know that there’s a separate security deposit for each type.
Though Titulary gambling is legal since 1990, foreigners only started joining in 2017 due to the Gambling Act that was announced on that same year.
There’s not much about standards in the Czech gaming market. Here they are:
- A counter should be placed to remind players of how much time they have spent on gaming
- A warning that indicates “Internet games may be harmful.”
- Minors are not allowed. Players should be 18 years old or older.
In conclusion, the information above is meant for operators and organizers to compare the gaming license rules in different Eastern European countries, so that they can best secure their investments. Each country mentioned above have their pros and cons, so choose the one which will give way to a more lucrative venture.