So how does software licensing work?

Most of the companies that actually run an online gaming operation are offshore (not within the USA). The vast majority are located in the Carribean and the United Kingdom. (See the Legal Issues section for an explanation). It is best to check with the laws of the country your company is in for authority to own and operate a casino. Also, it is worthwhile to look at the TAX structure. Australia was taking 50% of all winnings from internet casinos. This number was reduced to 8% after they realized Australians were gambling at internet betting operations located in other countries.

( One of the best books to read on starting an offshore corporation is Tax Haven Roadmap, by Richard Czerlau )

There are two types of licensing for running an online gambling operation. First and foremost is the gaming license. This is a government license which grants authority to the gambling establishment to take wagers and bets. The second is a software license. This is a license from an Online Gambling Software Provider to utilize their gambling software. Further below is a list of companies that provide software.

Usually, each of these Online Gambling Software Providers have deals or arrangements with one or more offshore nations (agian, usually the Carribean / Latin America). Either they have the "Master License" or have access to the ability to getting you a gaming license. In most cases, A GAMING LICENSE IS REQUIRED from the state/country you are based in order to take wagers on the internet. Some governments do not require a gaming license, while others (like Antigua, Gibraltar, Malta, Isle of Man and Costa Rica) do. In the USA, Gaming Licenses are given within US States.

Usually the Online Gambling Software Provider charges a software licensing fee. Most also take a percentage of the take for each month's revenues of the casino as well (otherwise known as a royalty fee). Some offer marketing services, while some require it as part of the agreement. Some offer equipment (ie: the server), while some require that it be purchased from them. Each of these companies have various structures but this all needs to be weighed out versus what they can offer in return. On average, most internet gambling business owners end up with 15 - 40% of the monthly profits.

Also what should be looked at is the type of software. Generally, there are 3 types: Download Based, JAVA and Flash. Each have advantages and disadvantages. To read more about this, click HERE and HERE.

The Wizard of Odds is an excellent reference as to how some of the online casino software providers' programs work (otherwise known as the basic "strategies" - see their GAMBLING ONLINE section).

Interactive Gaming Systems

 

CyberArts

 

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Who does one call to become a licensee?

Casino software platforms

NameCountryRatingContact
Interactive GamingArgentina
IGS provides clients with top quality gaming platform software for casino games(web based and download), multiplayer poker, sportsbook, bingo, skill games and more. We offer both the sub-license and the master license models which can include such services as merchant processing, hosting and server maintence, player and licensee support as well gaming license assistance. We have the capability and flexibility of customizing existing platforms to fit the clients specific needs as well as develop new projects.
21gnet
3WGraphics
7Red
888.com
AmayaCanada
Amaya
Amigo Techs
Aqua OnlineUnited Kingdom
Aristocrat Casino Software
Ash Gaming
B3W GroupUnited Kingdom
Bet and WinAustria
Bet365
BetSoftGaming
BetwareIceland
BingoUSA
BTgaming
CasinoMan
Casino Consult
Casino Re Kings
Casino Software
Casino Software DE
Casino Software Solutions
CIDC
CoscaGames
Cryptologic
CTXM Casino Software
Cyber Arts Licensing, LLCUSA
Curacao Egaming
CWC Gaming
eConnect
eLottery
EngamingBulgaria
EntWineTech
Evolution Gaming
Eyecon
Digient
GamblingSoftwareGrenada
GamebayUSA
Gaming LogixCanada
Game ColonyUSA
Game Variety
Gaming Group
Game HouseUSA
GamingLogixBahamas
Gamma SevenRussia
Globespan TechnologiesUSA
Gold Play
GTECH G2
Grandonline Casino
Grand Virtual Casino
Great BetCosta Rica
Home Gambling NetworkUSA
Integrated Games
iGaming SolutionsUSA
iGaming Suppliers
I.G.T interactive
Interactive Solutions CorporationUSA
International Lottery & Totalizator Systems, Inc.Canada
Intersphere CommunicationsUSA
IntralotGreece
Juicy Jackpots
Just for Fun software limited
Ladbrokes
Las Vegas From Home.com Entertainment Inc
LVS
Medialive Casino
MicrogamingUnited Kingdom
Miracle SoftwareCosta Rica
Parabolgame
Party Casino
PlayStar
Poker.comCanada
Poker BBC
NetBet CasinoUSA
Net Entertainment NE ABSweden
NetIntellGamesRussia
Netent
NextGen Gaming
OctavianRussia
OGSLTDUSA
Online Casinos
Online Casino Develoment
Online Cyber Tech
Online kaszino
OpenBet
OrbisUnited Kingdom
Own CasinoCanada
Parlay Games
PlayStar CorpAntigua
PlaySys
Play TechNetherlands
Poker.comCanada
ProgonaGibraltar
Progressive GamingUSA
Pro Wager SystemsUSA
Realtime Gaming/Casino Meister
Rival Dating Casinos
Sheriff Gaming
Solutions Corp.
Spielo G2Sweden
SwissGameNetherlands
Tiffany EnterprisesUSA
TopGameTechnology
Vegas Technology
Viaden
Virgin Games
VueTech
Wager StreetCanada
Wager WorksUSA
Wizard GamingCanada
WMS Gaming
Zukido
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