It once seemed like a smart move. Start a company in Curaçao, arrange a gambling licence, open a bank account in Cyprus, and you were good to go. But those days are over. Anyone still operating this way is not only taking a risk. They will soon be out of the game.
Many gambling companies still rely on a model that once worked. But the iGaming market has changed. What used to be a fast track to global profits is now increasingly being punished.
A worthless piece of paper
What is an offshore licence actually worth? In practice, such a document gives you the right to operate – but only outside the country that issues the licence. So a licence from Curaçao, Anjouan or Kahnawàke? It’s not really valid anywhere. No country accepts that another country can simply decide who is allowed to gamble within its borders.
Saying that you are legal because you have an offshore licence is the same as saying that you do not have a licence for regulators. No difference. No protection. No access to official payment processors or banks.
There is often something else behind the quality mark
Nevertheless, many companies use these documents to present themselves as “official”. However, the checks are often superficial. Offshore regulators mainly look at ownership structure and articles of association. They rarely look at how money comes in or where it goes.
This makes the sector vulnerable. Behind the façade of a gambling site, there may be completely different structures. That is precisely why the debate is increasingly shifting towards local licences.
Only locally can you gain real access
A local licence opens doors. It allows you to advertise, collaborate with sports clubs and conclude deals with major partners without being removed or blocked every time. And just as importantly, banks and payment platforms will be willing to work with you.
But that costs money. In countries such as Brazil, the total entry price can exceed six million dollars. Tax rates of up to forty percent are not uncommon.
The trend is undeniable
Governments are taking action. Even in countries that initially wanted little to do with online gambling. Regulated markets are emerging in Central Asia and the United Arab Emirates. Anyone who still relies on an old offshore approach is lagging behind.
The future is local. With stricter rules, higher thresholds and more control. Not every company will survive this. But those who can keep up will gain access to a more stable playing field.