The average cost of obtaining a gambling license ranges from $20,000 to $100,000, representing a substantial portion of the expenses involved in launching an online casino.
The price tag varies dramatically across jurisdictions, from budget-friendly options like Curacao starting at around $20,000 to premium licenses in the UK and Malta exceeding $500,000 in total costs.
When evaluating online gambling license options, operators must consider both upfront and ongoing expenses. Major cost influencers include jurisdiction reputation, license type (B2B vs B2C), application complexity, and renewal fees.
Let us get into these details.
Online Gambling License Cost: Important Information
- As of 2025, the Average gambling license cost ranges from $20,000 to $100,000.
- Budget licenses for Online Gambling start at ~$20,000.
- Premium licenses for the regions of the United Kingdom and Malta are priced at $500,000 and above.
- The cost of a Curacao license ranges from $21,000 to $26,000.
- Malta license incurs an application fee of €25,000 along with annual fees totaling € 25,000.
- Total startup costs are estimated to be around $1 million (based on 2025 projections).
- Affiliate software costs are expected to be about $2,000 each month.
- Game development and software expenses will vary between $100,000 and $500,000.
- Website development costs are projected to fall between $10,000 and $50,000.
How Much Does It Cost to Start an Online Casino?
| Expense Category | Budget Option | Premium Option |
|---|---|---|
| Gambling License | $20,000 (Curacao) | $500,000+ (UK/Malta) |
| Software Platform | $50,000 (White Label) | $500,000+ (Custom) |
| Game Integration | $12,000/month (Standard) | $50,000+/month (Premium) |
| Website Development | $10,000 | $50,000+ |
| Security/Compliance | $10,000 | $100,000+ |
| Marketing Setup | $50,000 | $200,000+ |
| Initial Working Capital | $100,000 | $1,000,000+ |
Source: Scale.io
The estimated total cost to start an online casino in 2025 is approximately $1 million, just to get started, with varying expenses depending on the scale and quality of operation.
This includes essential expenses like:
- Licensing
- Software Development
- Game acquisition
- Website Development
- Security Setup
- Initial Marketing Costs
How to Get a Gambling License?
Getting a gambling license involves several critical steps:
Step 1: Choose a jurisdiction that aligns with your business model, target markets, and budget constraints.
Step 2: Prepare required documentation, including business plans, KYC/AML policies, and financial records.
Step 3: Apply with all supporting materials and pay the initial application fees.
Step 4: Pass background checks and demonstrate financial stability and integrity.
Step 5: Implement technical requirements for security, responsible gaming, and data protection.
Step 6: Wait for approval – processing times range from 2 weeks to 12 months, depending on jurisdiction.
Please note the following:
Common legal and financial hurdles include meeting financial requirements for expenses and taxes, ensuring system reliability and payment processing compliance, implementing anti-money laundering security measures, and protecting player data.
The timeline for obtaining a license varies significantly by jurisdiction: Tier 1 licenses (like UK, Malta) typically take 6-12 months, while Tier 2 and Tier 3 licenses generally take 1-3 months.
Source: GBO, Gofaizen, Upgaming
Cheapest Online Gambling Licenses in 2025
The cheapest online gaming licenses in 2025 are from Vanuatu and Anjouan, with costs typically ranging between $17,000 and $20,000.
Both jurisdictions offer straightforward application processes with minimal compliance requirements, making them attractive options for startups and smaller operators.
Here is the breakdown of the top 5 affordable gambling license jurisdictions:
| Jurisdiction | Initial Cost | Annual Renewal | Processing Time | Tax Rate |
|---|---|---|---|---|
| Anjouan | $25,000 | $15,000 | 3-4 weeks | 0% |
| Curacao | $21,000-$26,000 | $15,000 | 4-6 weeks | 2% |
| Vanuatu | $15,000-$20,000 | $10,000 | 2-3 months | 0% on gaming revenue |
| Costa Rica | $15,000-$17,000 | $10,000 | 4-8 weeks | 0% (local regulations) |
| Kahnawake | $40,000 | $20,000 | 2-3 months | 0% |
Although these licenses are cost-effective, they entail compromises concerning international acknowledgment, regulatory compliance, and the trust of participants.
Cheaper Online Gambling Licenses Pros
- Lower startup costs and financial barriers to entry.
- Faster application processing times.
- Often have minimal operational requirements.
- Less stringent compliance standards.
Cheaper Online Gambling licenses Cons
- Limited international market access.
- Lower player trust and credibility.
- Difficulty establishing banking relationships.
- Limited payment processor options.
Cost of Online Casino Licenses by Jurisdiction
Malta license holders must pay €5,000 as a non-refundable application fee regardless of license type. For most license types, the annual fee is €25,000.
Additionally, the jurisdiction requires a minimum share capital of €40,000 for Type 3 and 4 licenses or €100,000 for Type 1 and 2 licenses.
License costs depend on jurisdiction classification, which is as follows:
- Tier 1 (strict regulations, high compliance).
- Tier 2 (moderate regulations).
- Tier 3 (less stringent regulations).
The license type (B2B, B2C) also significantly influences the total price.
Let’s take a look at the exact cost of online casino licenses by jurisdiction
| Jurisdiction | License Tier | Application Fee | Initial License Cost | Annual Renewal | Processing Time | GGR Tax Rate | Market Access |
|---|---|---|---|---|---|---|---|
| UK | Tier 1 | £5,000-£38,000 | £30,000-£50,000 | £30,000-£50,000 | 8-12 months | 15-21% | UK, Global prestige |
| Malta | Tier 1 | €5,000 | €25,000 | €25,000 | 4-6 months | 5% | EU, Global |
| Isle of Man | Tier 1 | £5,000 | £35,000 | £35,000 | 3-6 months | 0-1.5% | UK, Europe |
| Gibraltar | Tier 1 | £10,000 | £100,000 | £75,000 | 6-12 months | 0.15% | Europe |
| Alderney | Tier 1 | £10,000 | £17,500 | £17,500 | 3-6 months | 0% | Europe |
| Curacao | Tier 2 | $5,000 | $21,000-$26,000 | $15,000 | 4-6 weeks | 2% | Global |
| Kahnawake | Tier 2 | $20,000 | $40,000 | $20,000 | 2-3 months | 0% | Global |
| Antigua | Tier 2 | $15,000 | $75,000 | $50,000 | 2-3 months | 3% | Global |
| Anjouan | Tier 3 | $5,000 | $25,000 | $15,000 | 3-4 weeks | 0% | Gray markets |
| Vanuatu | Tier 3 | $5,000 | $15,000-$20,000 | $10,000 | 2-3 months | 0% | Gray markets |
| Costa Rica | Tier 3 | $5,000 | $15,000-$17,000 | $10,000 | 4-8 weeks | 0% | Gray markets |
Source: Nuxgame, Inside Bitcoins, Staista
Online Gambling License USA Cost
Pennsylvania charges the highest initial license fees for online operators in the US, between $4 million and $12 million.
The cheapest initial costs are in Michigan, set at $100,000. Additionally, Michigan has the steepest taxes on online gambling revenues, ranging from 20% to 28%, and is the only state with a graduated tax rate.
The US online gambling licensing is complex and regulated at the state level. Each state establishes its own licensing requirements, fees, and tax structures as follows:
| State | License Type | Initial Fee | Renewal Fee | Tax Rate | Notes |
|---|---|---|---|---|---|
| Pennsylvania | Online Casino | $4M-$12M | $250,000 | 16% | Highest initial fees |
| New Jersey | Online Casino | $400,000 | $250,000 | 15% | Pioneer market |
| Michigan | Online Casino | $100,000 | $50,000 | 20-28% | Graduated tax rate |
| Nevada | Online Poker | $500,000 | $250,000 | 6.75% | Poker only |
| Delaware | Online Casino | State monopoly | N/A | State-run | Closed market |
| West Virginia | Online Casino | $250,000 | $100,000 | 15% | Newer market |
| Connecticut | Online Casino | Tribal compact | Varies | 18% | Limited operators |
US online gambling regulation differs significantly from international markets, with higher barriers to entry but also greater legal certainty for licensed operators.
Connecticut’s online gambling is tied to a compact between the state and two tribes (the Mashantucket Pequot Tribe and the Mohegan Tribe), along with the Connecticut Lottery Corporation, under the regulation of the Connecticut Department of Consumer Protection (DCP).
In the year 2024, 10% of adults in the United States engaged in online sports betting.
The revenue generated from sports betting in the United States for the year 2023 amounted to $11.04 billion, indicating a year-over-year growth of 46%. As of January 2024, the most utilized sports betting website in the United States is DraftKings.
Sportsbook License & Gambling App License Costs
Affiliate software for online casinos and sportsbooks can cost around $2,000 per month for complete solutions.
Additionally, depending on jurisdiction, licensing and legal fees can range from $20,000 to $500,000, while game development or software purchases vary widely from $100,000 to $500,000.
Sportsbook and gambling app licenses often come with additional technical requirements beyond standard online casino licenses. These specialized licenses require:
| License Component | Sportsbook Requirements | Mobile App Requirements | Additional Cost |
|---|---|---|---|
| Oddsmaking Systems | Required | Not required | $50,000-$150,000 |
| Live Betting Infrastructure | Required | Not required | $75,000-$200,000 |
| Mobile-specific Security | Basic | Advanced | $25,000-$100,000 |
| App Store Compliance | Not required | Required | $10,000-$50,000 |
| Geolocation Services | Basic | Advanced | $20,000-$80,000 |
| Responsible Gaming Tools | Standard | Enhanced | $15,000-$60,000 |
Mobile gambling apps face additional scrutiny in many jurisdictions, requiring specialized compliance measures beyond traditional online gambling licenses. These include:
- Enhanced Geolocation Verification
- More Stringent Underage Gambling Prevention
- Mobile Platform Rules (Ios/Android) Compliance
International Gambling Licenses: Success Stories, Costs, and Credibility
As a multinational online casino and bookmaker with offices across multiple continents, 22bet offers over 1,000 events every day and services in over 100 countries thanks to its international license.
Since starting in 2017, the company has grown substantially, with annual revenue estimated between $2 and $5 million.
Alternatively, the UK Gambling Commission recognizes the Malta Gaming Authority (MGA), which allows MGA-licensed businesses to operate in the UK.
Additionally, the MGA license is recognized by various Canadian provinces (Quebec, BC, Manitoba), the New Zealand Gambling Commission, and several Latin American countries, including Argentina, Peru, and Mexico.
Source: Legal Bison, 22Bet, Similar Web
How Much Does It Cost to Run an Online Casino Daily?
The monthly earnings of an online casino can vary significantly, with average online casinos generating approximately $14.9 million in gross revenue annually (equivalent to about $1.24 million per month).
Nevertheless, these figures fluctuate based on the casino’s size, game offerings, market conditions, and operational strategy.
The global online gambling and betting industry is projected to reach $86 billion by the end of 2025. Furthermore, the estimated market size by 2029 is anticipated to be $120 billion.
As of 2025, the global sports betting and lottery industry is valued at $329 billion. It employs over 180,000 individuals and has approximately 17,000 businesses operating within this sector.
Major game providers often command fees of around $12,000 per month plus a percentage of the casino’s winnings from their games.
If these providers represent over 50% of a casino’s game offerings and the casino has a monthly gross income of $311,000, a 20% deal could equate to around $31,100 in provider fees.
Keeping all these expenses in mind, here is an estimate based on my research on how much money is required to run a casino:
| Expense Category | Daily Cost (Small) | Daily Cost (Medium) | Daily Cost (Large) |
|---|---|---|---|
| Game Provider Fees | $400-$800 | $1,000-$2,000 | $3,000-$10,000 |
| Payment Processing | $200-$500 | $500-$1,500 | $1,500-$5,000 |
| Staff & Support | $300-$700 | $700-$2,000 | $2,000-$8,000 |
| Marketing & Affiliates | $500-$1,000 | $1,000-$3,000 | $3,000-$15,000 |
| Server & Infrastructure | $100-$300 | $300-$800 | $800-$3,000 |
| License Compliance | $50-$200 | $200-$500 | $500-$2,000 |
| Bonuses & Promotions | $200-$600 | $600-$2,000 | $2,000-$10,000 |
| Total Daily Costs | $1,750-$4,100 | $4,300-$11,800 | $12,800-$53,000 |
| Monthly Estimate | $52,500-$123,000 | $129,000-$354,000 | $384,000-$1,590,000 |
Additional costs include white label royalties (typically 5% of revenue), personnel costs (approximately $5,000 monthly), website hosting and maintenance (about $5,000 monthly), and internal promotions, which can amount to $100 per active player.
Source: Slotgrator, Statista
Can You Operate Without a Gambling License?
Operating without a license results in serious consequences, such as:
| Risk Category | Potential Consequences |
|---|---|
| Legal Enforcement | Shutdown orders, criminal charges, fines, asset seizure |
| Financial | Payment processing restrictions, frozen funds, blacklisting by banks |
| Technical | ISP blocking, app store removal, software provider rejection |
| Reputational | Player distrust, negative reviews, industry blacklisting |
| Security | No regulatory protection against hacking, fraud, or theft |
In 2025, the Michigan Gaming Control Board issued cease-and-desist orders to 11 illegal online gambling operators targeting Michigan residents.
The operators were given 14 days to comply or face further enforcement, including potential legal action through the Michigan Attorney General’s Office.
Unlicensed gambling sites lack proper oversight and don’t implement standard banking-level security for player data. This makes them frequent targets for hackers seeking to steal databases containing personal and financial information, which can then be used for broader fraud and cybercrime.
Another significant concern with unlicensed casinos is that many use fake game duplications instead of properly licensed games. These games don’t require licensing and are much cheaper for the operator, but they can be easily manipulated and may not provide fair or random outcomes.
Source: Michigan GOV, GISuser
Final Thoughts: Online Gambling License Costs Range $20k To $500k
Online gambling license costs can range from $20,000 to $500,000, but choosing the right one goes beyond price.
Align your license with your business goals, budget, and compliance capabilities. Higher-tier licenses often boost market credibility and enable smoother global expansion.
With the online gambling market expected to grow from $86 billion in 2024 to $120 billion by 2029, a 39.5% increase, there’s strong potential for long-term success. In the U.S., 1 in 10 adults engage in online sports betting, showing rising demand.
The proper license supports compliant growth and positions your casino for long-term profitability.
Ultimately, the best online gambling license is not necessarily the cheapest, but the one that best positions your operation for sustainable, compliant growth in your target markets.
FAQs
Depending on the jurisdiction, documentation completeness, and regulatory complexity, processing times range from 2-3 weeks (Anjouan) to 12+ months (UK, Malta). Tier 1 jurisdictions typically take 6-12 months, while Tier 3 can be as quick as 3-4 weeks.
Many successful operators hold licenses in multiple jurisdictions to access different markets. However, this substantially increases initial and ongoing compliance costs and should be part of a strategic expansion plan.
Most jurisdictions allow reapplication after addressing the issues that led to rejection. Working with experienced legal counsel can significantly reduce the risk of initial rejection.
Some jurisdictions offer comprehensive licenses covering multiple activities, while others require separate permits for casino games, sports betting, poker, etc. Malta, for instance, has different license types based on the gambling activities offered.
While some crypto casinos previously operated in regulatory gray areas, most jurisdictions now require proper licensing regardless of accepted payment methods. Some jurisdictions have even created specific licensing provisions for crypto gambling operations.
