A Safe Haven for iGaming and Gaming Affiliates
In many European countries, online gaming at unlicensed online casinos is prohibited. Some countries even block online services using IP addresses that do not belong to those countries (e.g., Switzerland). In such cases, you can only play at state-licensed online casinos or try your luck by using VPNs. VPNs make it appear as though you are located in the relevant country by using remote servers with IP addresses from that country.
Which Location to Choose for your Gaming Business
Quite apart from exotic jurisdictions that issue gaming licenses (Vanuatu, etc.), online casinos in Europe are mainly based in Gibraltar and Malta. Gibraltar is not part of the EU, and the Malta Gaming License does not have so-called “passporting rights” for the EU. What exactly does that mean? Companies or casinos can legitimately offer their online gaming services in Malta (and essentially only there) with a Malta Gaming License. Whether a very expensive gaming license is worth it is up to each individual to decide; after all, a population of around 570,000 means there isn’t exactly a vast pool of potential customers to draw from. That’s why online casinos often don’t take too much stock in where their paying customers come from.
We regularly receive inquiries from gaming affiliates who want to promote online casinos. This is a lucrative business, but it is prohibited in Germany, Switzerland, and many other EU countries. In Germany, gambling is illegal unless you play at state-run casinos. The legal rationale is to protect consumers, who are to be prevented—in their own interest—from developing a gambling addiction and gambling away their income. Of course, this cannot happen in state-run casinos, and the states also generate “gambling taxes.”
What does this mean for gaming affiliates? If offering gambling and playing at unlicensed online casinos is already prohibited by law, advertising for them cannot be permitted either. Gaming affiliate marketing is a form of advertising or marketing designed to bring players to online casinos and generate hefty commissions. So if you live in Germany, Switzerland, Austria, or various other countries, you’d better steer clear of it.
Benefits of Malta iGaming and Gaming Affiliates
Malta, however, protects its own online casinos (with Malta Gaming Licenses) as well as gaming affiliates who advertise and attract players to these casinos when business is conducted in Malta,
making it a safe haven for iGaming and Gaming Affiliates. However, there’s a flip side to the coin: Customers cannot be approached freely, and if online gaming is forbidden in a country, gaming affiliates share the same destiny. To prevent “unwanted” players from accessing your Social Media accounts or websites, you must implement technical measures. Of course, it is not nice to hinder potential customers from accessing your websites and social media. However, this is the better option than having lengthy dealings with prosecution services around the globe. Ideally, a website restricts access for customers from the relevant countries. How effective this is in the age of VPNs is an open question.
It is strongly recommended that you comply with the law to avoid breaking it. Contact us via WhatsApp and Telegram to operate your business legally. Our experts at TAXEDO Legal will advise you on gaming-related matters, whether Gaming Licenses, iGaming, or Gaming Affiliates.