What does it take to open a bank account for an igaming business?

What does it take to open a bank account for an igaming business?

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Softgamings outline the importance of keeping up with current legislation to make opening a bank account for your igaming business as easy as possible.

With the tightening of gambling legislation, it is becoming trickier to open a business bank account for one’s online casino, with more banks refusing to provide this service to gambling ventures.

Banks tend to avoid working with high-risk companies, including online casinos, sportsbooks and other forms of gambling businesses. In this situation some operators prefer to hold other accounts, which are not properly authorised.

If you want to run a legal casino, in which players feel safe to play, you should open a business bank account for your company. 

Peculiarities of banking for gambling businesses

Banks may decline opening an account for you because of you not having a proper gaming license. Lately, more banks have begun to demand a local license, while casinos usually work under a universal license like Curacao.

Roman Kondrashov, co-founder of aggregation company, SoftGamings, says:

“Even those banks that still open accounts for gambling companies without local licenses do not provide a guarantee of not closing these accounts later. Basically, it means that your money can be frozen anytime.”

Let’s assume you have a proper license, but you still have to keep your hand on the pulse to comply with changing legal regulations and banking requirements. You have to know how to go through the process of application, like understanding DD requirements, collecting necessary documents and filling in questionnaires.

If you don’t have experience, this process may appear to be lengthy, troublesome and, in the end, useless. So, if you don't succeed in opening an account on your own, you should seek professional assistance.

Intermediaries can help

The problem may not be with banks themselves. Sometimes, you need to contact a bank through a company that has established strong cooperation with it, so contacting an intermediary may be a good solution.

By the way, if you think that turning to intermediaries is a waste of money, that is only the case if you have considerable experience and connections in the industry. In most cases, it is better to turn to specialists and let them do their job.

Withal, intermediaries offer more than one service. For instance, if you start your gambling business, you not only need a bank account, but also a company, a license, gambling-friendly hosting, a bonus system, promotion - basically all kinds of services. You can simply contact such a company and get a customised casino with games, bonuses and all necessary features, ready for launch in two months, so that you could focus on its promotion completely. It is much easier to open a casino than it is to make it profitable, as can be seen in the bitter experience of countless casinos that have disappeared not long after opening. This is why many casino operators prefer using the services of intermediary companies.

To summarise, it is becoming harder to start a gambling business; stay abreast of the changes in this area to give your business the best chance of success.

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