The Value of Licensing for Providers of Gaming Software

Licensing is the legal framework governing the use, distribution, and modification of software. General types of licences include open licenses that allow for distribution and modification, free licenses that grant basic rights to use without modification, and commercial licenses that restrict use and require payment.

Licensing in the gaming industry, especially gambling, implies strict adherence to rules that ensure the safety and fairness of games offered. Authorities require auditing, certification and compliance with standards such as RNG (Random Number Generation) to protect players and maintain integrity in the industry. Platforms such as 888STARZ bet  must meet these requirements in order to offer their services legally and reliably.

The Licensing Process for Gaming Software Providers

1. Choosing a Licensing JurisdictionThe licensing procedure, price, and reputation are all greatly impacted by the jurisdiction selection. The laws, costs, and reputations of well-known countries including Malta, Curaçao, Gibraltar, and the UK vary. Credibility and access to regulated markets are provided by the UK and Malta, who are well known for their strict requirements. Curaçao may have restricted market access, but it is well-liked for its cheaper prices and less complicated regulations. 

2. Requirements for Software ProvidersTo get a licence, gaming software vendors need to fulfil a number of requirements. Technical compliance, which complies with industry standards; player protection measures, such as responsible gambling tools; financial stability, which guarantees operators can meet liabilities; and fair gaming assurances, such as independent testing of RNG (Random Number Generation) systems, are important prerequisites. A secure and equitable gaming environment is ensured by fulfilling these conditions.

3. Stages of the Licensing Process The licensing process typically involves several stages:

4. Application Submission: Providing detailed business information.

5. Compliance Checks: Verifying financial health and legal eligibility.

6. Technical Audits: Reviewing software architecture and security.

7. Software Testing: Ensuring RNG and gameplay fairness.

8. Final Approval: Granting the licence if all requirements are met. This structured process ensures legal compliance and integrity in gaming operations.

   
   

The Role of Independent Testing Labs

1. Functions of Testing LaboratoriesIndependent testing companies play a crucial role in the verification and certification of gaming software to ensure compliance with industry standards, namely randomness and safety. They carefully evaluate random number generators (RNG), game logic and payout algorithms to confirm that the results are genuinely random. They also assess software security, user data protection and compliance with the rules of responsible gambling. After the software passes testing, the laboratories provide a certificate of compliance, which is a mandatory requirement for obtaining and maintaining a game licence.

2. Recognized Testing Labs Several industry-approved testing labs are trusted worldwide for their expertise and integrity. Notable examples include:

3. eCOGRA (eCommerce Online Gaming Regulation and Assurance): Specializes in player protection, fair gaming, and responsible operator conduct.

4. iTech Labs: Renowned for its RNG testing, functionality assessments, and security evaluations for various gaming platforms.

5. GLI (Gaming Laboratories International): One of the largest testing labs, providing comprehensive testing services for iGaming, land-based gaming, and lottery systems.

   
   

Benefits of Licensing for Providers and Players

Trust and ReputationObtaining a licence enhances the reputation of the software provider by demonstrating compliance with industry standards for fairness, security, and reliability. This builds trust between the casino and the players, which has a positive effect on the reputation of the provider.

Access to New MarketsLicensing allows software providers to operate legally in multiple jurisdictions, expanding their reach and opening up new revenue opportunities. Licensed suppliers gain access to regulated markets by enhancing their global presence.

Player ProtectionLicensing protects the interests of players by ensuring that the software complies with rules, data protection and responsible gambling. Regular checking and testing contributes to a safe and reliable gaming environment.

Risks and Consequences of Operating Without a License

Legal ConsequencesSoftware vendors face serious legal issues when working without a licence, especially in regulated industries. Authorities in countries with strict regulations, including the US, Malta, and the UK, are fining companies that offer gaming software without the necessary licence. Regulators also have the power to issue cease-and-desist orders, which may result in immediate cessation of operations. Unlicensed suppliers may face criminal prosecution, closure of business or possibly imprisonment of responsible persons in serious cases. Revenues obtained through unlawful activity may also be seized for failure to comply with jurisdictional standards. Furthermore, businesses are unable to access profitable, regulated markets in the absence of a legal licence, which further restricts their ability to expand.

Loss of TrustNon-licensing damages software producers' reputations and undermines trust among operators, players, and partners. Due to the possibility of legal action and reputational harm, operators are typically reluctant to work with unregistered providers. Unlicensed software creates questions of security, fairness, and the preservation of personal information from the viewpoint of the player. Players cannot be confident of true randomization or dependable payment methods if respectable testing labs do not certify them. Reduced player engagement, poor customer retention, and eventually revenue loss are frequently the outcomes of this lack of trust. . For platforms like 888STARZ, establishing and maintaining trust through licensing is critical for long-term success.