What is an online casino license and how does it work?

An online casino license is an official permit issued by a government or a regulatory authority that allows a company to legally operate an online gambling business. Having an online casino license is like having a seal of approval to prove that the brand is legit.

Having a license is important because it shows that a real company has been registered, the games and brand are fair and certified and the online casino follows specific laws for player protection and financial transparency.

In this guide, we break down what an online casino license is and why it is necessary.

Who issues casino licenses?

Online casino licenses are issued by government-appointed regulatory bodies which are also often called Gambling Commissions or Gaming Control Boards. These bodies act as the “police” of the entire industry.

There are three types of bodies:

National Regulators

These regulatory bodies give licenses that only allow a casino to operate within a specific country’s borders. They also ensure that the company that owns the online casino pays taxes locally and follows national laws. Examples include:

• United Kingdom Gambling Commission (UKGC) – United Kingdom
• Kansspelautoriteit (KSA) – Netherlands
• Directorate General for the Regulation of Gambling (DGOJ) – Spain
• Autorité Nationale des Jeux (ANJ) – France

International/ Offshore Regulators

These are the regulators which are responsible for online casinos and betting sites in India, Bangladesh, Pakistan etc. They issue licenses that allow casinos to accept players from many different countries. Examples include:

• Malta Gaming Authority (MGA)
• Curaçao Gaming Control Board (GCB)
• Curaçao Gaming Control Board (GCB)
• Isle of Man Gambling Supervision Commission (GSC)

Tribal and State Regulators (North America)

In North America, licensing is often handled at a more local level rather than by the federal government.

• United States: Licenses are issued state-by-state by boards like the New Jersey Division of Gaming Enforcement (DGE) or the Pennsylvania Gaming Control Board (PGCB).
• Kahnawake (Canada): The Kahnawake Gaming Commission, based in Mohawk Territory, was one of the first in the world to issue licenses for online poker and casinos.

What is the difference between licensed and unlicensed casinos?

A licensed casino is legally bound to follow strict rules for player safety and fair play, whereas an unlicensed casino operates without any official oversight.

Some key differences are:

Why Online Casino Licensing Exists?

The licenses cover players for the following:

• Player protection
  Licensing ensures that your personal data is encrypted and that your money is safe. Regulators require casinos to keep player funds in separate accounts from those of the company’s operating cash.
• Fair play enforcement
  Online casinos have to get their games certified for Random Number Generators (RNGs) by independent labs such as eCOGRA which regularly audits these systems to ensure that the RTP is fair and as advertised.
• Anti-fraud measures
  Online casinos must have Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols to prevent identity theft, stopping minors from gambling, and to ensure the platform is not being used to launder money.
• Responsible gambling requirements
  Regulators make sure that the casinos provide tools such as deposit limits, session timers, and self-exclusion lists to prevent addiction.
  They also monitor for predatory behaviour, where they see that the casino doesn’t target vulnerable players with aggressive marketing.

Major Online Casino Licensing Authorities

Here is a list of the major authorities that grant licenses to online casinos and sportsbooks.

• Curaçao Gaming Control Board
  The board operates from Willemstad, Curaçao, which is a Caribbean constituent country of the Kingdom of the Netherlands. It was established by the government in 1999 to oversee the island’s gaming industry.
  Curaçao pioneered offshore licensing in 1996 and now centralises supervision for all land-based and online gaming sectors under a modernised framework
• Malta Gaming Authority (MGA)
  The MGA operates from SmartCity, Malta. The government founded the agency in 2001 to unify oversight across various gaming sectors. Malta became a global industry leader in 2004 when it became the first EU member to implement comprehensive remote gambling laws.
• UK Gambling Commission (UKGC)
  The UKGC is based in Birmingham, England and was created thanks to The Gambling Act of 2005 and assumed full regulatory powers in 2007. The UKGC is an independent public body sponsored by the Department for Culture, Media and Sport.
• Gibraltar Regulatory Authority
  The GRA operates from Eurotowers in Gibraltar, a British Overseas Territory, after it was established under the Gibraltar Regulatory Act in 2000.  The Gibraltar Gambling Commissioner specifically governs online gambling under the provisions of the Gambling Act 2005.
• Isle of Man Gambling Supervision Commission
  The commission manages its operations from Douglas in the Isle of Man, which was founded in 1962 to monitor land-based casinos and is one of the oldest regulators in the industry.

What a Casino Must Do to Get Licensed?

The regulators look at many aspects of an online casino to make sure of player safety. They must check every single process from the inception of the brand to involvement in the daily operations. Here is a list of what the regulators must do before granting a license:

• Company Background Checks
  Regulators conduct “Fit and Proper” tests on all owners, directors and key stakeholders to make sure that there are no connections to organised crime or criminal history. They also look into their business history, reputation and scrutinise details of those involved in the businesses.
• Financial Verification
  The company’s financial records are audited to verify its capital to pay out all player winnings and also cover the operational costs. The operator must also verify that the player’s funds are in a different bank account to safeguard the player’s funds if the operator is bankrupt.
• Software and RNG Certification
  Every game must be tested by independent labs like eCOGRA or GLI to confirm that the Random Number Generator (RNG) is truly working. This certification ensures that the “house edge” is fair and that the games are not rigged against the player.
• Anti-Money Laundering (AML) Requirements
  Casinos must implement strict Know Your Customer (KYC) protocols to verify the identity and location of every player on the site. They are also required to monitor all transactions for suspicious patterns and report any potential illegal financial activity to the relevant authorities to prevent any money laundering.
• Responsible Gambling Compliance
  Operators must build tools which allow players to take breaks or self-exclude themselves from playing on their site. The regulators also require that the online casinos have systems to monitor and identify players who show signs of addiction.

How to Check If an Online Casino Is Licensed?

CricketBatPro independently manually verifies the license of each online casino and adds it to the review along with its license number. If you would like to find out about the license yourself, then you can:

1. Look for logos at the footer. The images will be linked to their license page. There, you can verify if the license is currently valid and also check the URL.
2. Visit the regulator’s official portal if the links are not available. Then you can search for the casino’s name or license number if you have it.

What Happens If a Licensed Casino Breaks the Rules?

When a licensed casino fails to meet any of its regulatory obligations, the authority which issues the license has to take a series of steps to enforce compliance and protect players.

Investigations

Regulators initiate formal inquiries to review internal data, software logs and transaction records after detecting suspicious activity or receiving player reports. An instance was in 2024 when the UKGC launched a routine compliance assessment of Paddy Power Betfair. The investigation revealed that their automated systems were not sensitive enough to detect high-velocity spending, such as a customer placing 300 bets amounting to £20,000 in a single eight-hour session without any wellness check.

Fines and Penalties

The regulators impose financial sanctions on operators that fail to meet safety or anti-money laundering (AML) standards and they are also often required to publicly admit to fault. In December 2025, Platinum Gaming received a £10 million fine for recurring AML and social responsibility failures between 2023 and 2025.

License Suspension or Revocation

The regulators can temporarily freeze or permanently cancel a casino’s license for severe or repeated misconduct. In July 2025 the Malta Gaming Authority  cancelled the authorization of Oddsfly Limited after the company failed to meet its financial commitments.

Player Compensation

Regulators may force an operator to refund players who suffered financial losses due to dishonest practices or failures in the casino’s safety tools. In September 2024, the MGA suspended Goldwin Ltd and made them fully refund player accounts.

Conclusion

A license is an online casino /sportsbook’s most important feature. This not only provides assurance of a legal recourse but also allows players to trust the brand they are playing on.

Always trust but verify.

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