Creating an online casino
Creating an online casino or betting systems is one of the most profitable internet businesses. Suffice it to say that 95% of the turnover of payment systems is betting and gambling payments. In addition, at the moment, a large amount of software for such a business has been developed and is publicly available, and technically, the question “how to create a casino website” can be solved even by a relatively small team of programmers.
These facts make this line of business very attractive. Unfortunately, Russian legislation (and not only) prohibits the creation of online casinos on the territory of the Russian Federation. Moreover, the law is written in such a way that it implies that even foreign companies should not conduct such activities within the borders of Russia. This is where various legal subtleties begin.
Create an online casino or lottery?
Two big differences
First, you need to distinguish between the concepts of “organizing an online casino” and “organizing an online lottery.” Lotteries are not prohibited.
The fundamental difference between a lottery and a casino is the location in time of the event on which the bet is placed. If the event is in the future (the law believes that the organizers of bets can influence it), then this is betting or casino activity. And if the event has already happened, but its result is not yet known to the participants in the bets, then this is a lottery and it is allowed. As you can see, the legislation itself contains opportunities for its different interpretations, which, of course, are used by representatives of domestic government agencies. Therefore, the organization of an online lottery, as a rule, faces the impossibility of even formally proving that the site is not a casino.
Secondly, in Russian legislation there is no clear definition of the place of business of an Internet company, and common sense suggests that if all business elements are moved abroad, then it becomes impossible to prove that the activity was carried out “on the territory”.
The third interesting point is the choice of jurisdiction to obtain a betting license. Today, the most interesting conditions are offered by Curacao, Malta and, oddly enough, Great Britain. Unfortunately, the taxation of betting activities there is such that it is simply not profitable to pay all taxes. The cost of a license varies, and the rights depending on the type of betting are also very different. There is also a corruption component. Therefore, the question arises by itself about activities under a license with the transfer of 99% of the profit as royalties to some offshore.
The fourth question, of course, is the choice of such an offshore and, of course, what kind of license or agreement it will be (for the payment of royalties). In this case, the question arises of the relationship between the state that issued the betting license and a specific offshore company – a betting license may be revoked for doing business with companies from the black list.
The fifth question is the choice of a license (or agreement) on the basis for the payment of royalties. Here, perhaps, it makes sense to recommend using the right to use some program
Our services
The list of questions and relationships between them can be continued further. However, it is extremely difficult to independently build a legally, tax- and technically sound business model without having extensive knowledge in several areas at once. As a solution to this issue, we offer you to conduct a paid consultation, during which experienced specialists will not only answer almost any of your questions, but also offer the development of a general scheme and outsourcing of some stages of your project. If you want to create an online casino, we can offer you the development of the following issues:
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Development of legal, tax and technical schemes for doing business
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Creating the necessary structure of legal entities
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Obtaining betting licenses and software rights
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Opening accounts in foreign banks and connecting Internet acquiring
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Technical audit of the system developers’ activities
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Recommendations for international tax planning
Dear Sirs. There are very few companies in Russia that provide similar services for creating online casinos. But only we provide a full range of services and are able not only to create a turnkey online casino, but also to further administer and support it in all aspects of its activities. Please contact us.
