Licensed Vs. Unlicensed Casinos – Key Differences And Jurisdictions

Nowadays, there are hundreds of licensed and unlicensed casinos on the Internet, providing visitors with various types of gambling. A license is a doc that confirms the legal conduct of the gaming business and guarantees the players financial stability, high-quality services, and safe software. Licensed institutions post a scanned copy of the license on their official websites, so players can go to the regulator’s website and check it. Today, we will discuss the key differences between licensed and unlicensed institutions and describe all the risks for clients. So, let’s start.

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Key Differences Between Licensed And Unlicensed Casinos

First of all, it is worth noting that the best online casino for you is the one that has a valid license. Such establishments guarantee their customers the payout of winnings, while unlicensed ones don’t. It is even difficult to win on fraudulent sites since their owners can illegally influence the RNG, which is responsible for a random drop of prize combinations. Such portals attract by bonuses up to several thousand dollars.

In licensed clubs, the owner has no way to influence the internal mechanics of games and control the likelihood of winning. Their activities are strictly controlled by independent auditors of the responsible jurisdiction. Copies and results of their inspections are available on the websites of the platform and regulator.

The Most Popular Jurisdictions

You can get a license to run a gambling business in the following jurisdictions:

  1. Gibraltar: gambling tax of one percent; the operator must verify its customers and ensure the confidentiality of data on their claims.
  2. Denmark: gives licenses for up to five years.
  3. Curacao: issues a license for all types of gambling business for up to five years and is automatically renewed if all conditions are met.
  4. Malta: grants licenses of four classes, which corresponds to a separate direction of the gambling business. The first class is online casinos, lotteries, and slots, the second is bookmakers, the third is betting exchanges, poker, and bingo, and the fourth is manufacturers of equipment for gambling entertainment.

To receive a document confirming the legal activities of the casino, the owner must pass a regulated verification procedure. The suitability of a company for managing a gambling platform is initially assessed. The regulator examines the constituent documents, office, and in some cases, even fingerprinting of the founders. The compliance of the business plan with the long-term operation of the online casino is also checked.

It should include objectives, company structure, profit-making business model, software overview, marketing and sales plan, balance sheets, information on funding sources, and distribution of funds to shareholders. So, having passed all the above procedures, such an institution will be more than interested to act according to the law.


Playing in a licensed casino, customers can be sure of its reliability, honesty, and safety since the operability of the random number generator, the quality of software and service are checked by independent organizations. So, check this document before playing, and good luck.

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