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The Tobique Gaming License. What is it and how to get it?

The Tobique gambling license is a new but very promising e-gaming license for startups and entrepreneurs looking to set up in the online gambling industry. The license is cheaper than alternatives on the market, and the licensing process is much more flexible, making it a perfect option for new entrants.

Issued by the Tobique Gaming Commission (TGC) in Canada following the Tobique Gaming Act of 2023, this new gaming license allows you to operate online casino services worldwide (with the exception of a few prohibited countries).

New Brunswick - Tobique Gambling License Article

Posted 28 May 2024

Do I need a gambling license?

An online gambling license is fundamental for entrepreneurs looking to establish a digital casino business.

First and foremost, the online gambling industry is highly regulated, and operators in this space are legally required to possess a valid license to offer their services.

But looking beyond the legality, possessing an online gambling license indicates legitimacy, lending your business a sense of credibility. It shows customers that you’ve undergone a vetting process and that your service meets the industry’s standards for:

  • Transparency,
  • Fairness,
  • Integrity.

Why Choose Tobique

Entrepreneurs seeking an online gambling license had a few options to choose between and would evaluate their options by considering a few factors, such as:

  • Price
  • Processing time
  • Regional reach
  • Verticals offered

Before Tobique, Curacao was one of the most attractive destinations for obtaining a license in the gambling industry; however, In September 2023, Curacao introduced the National Ordinance on Games of Chance (LOK), which overhauled the entire regulatory framework and made it much more costly to obtain a license:

For example, license applicants need to establish a local presence in Curacao, as well as use physical servers in the country.
These new requirements make it much more costly to obtain and maintain a Curacao gaming license, and add to the overall operational expenses for gambling operators .

As a result, the Tobique gambling license is emerging as a true successor and is becoming an increasingly attractive choice for a few reasons:

  • It’s fairly simple to obtain.
  • It has favorable tax conditions.
  • It has one of the fastest processing times when compared to other options.

So, when considering all the above, is it any wonder that Tobique is emerging as one of the top choices in this jurisdiction?

Tobique Licensing Process

Typically, the course of action we’d recommend might sound familiar:

  1. Paying a pre-application fee.
  2. Registering a company outside of Tobique to act as the license holder. We have a group of recommended countries with favorable tax conditions.
  3. Compile and submit necessary documentation for the license application (including a non-refundable application fee).
  4. Incorporate another company to act as the payment agent (For cost-saving purposes). This can be done simultaneously while applying for the Tobique e-betting license.
  5. Once the application is reviewed and approved, pay the license fee.
  6. Once the Tobique e-gaming license is granted and the companies are set up, a bank account can be opened.

Overall, the process takes 6-8 weeks. Our recommended structure optimizes for financial efficiency and minimizing costs. We can also advise on when each part of the application fees can be paid.

Taxation Policies

The taxation policies about the overall gambling operation can vary depending on the country of incorporation. However, the above-suggested process results in the most tax-efficient structure.:

  • Tobique tax implications: Companies holding a Tobique gaming license are not subject to any gambling-related taxes in the Tobique jurisdiction.
  • Parent company tax implications: Certain countries have highly favorable tax conditions, where companies are not required to pay corporate income taxes on online gambling operations conducted abroad.
  • Subsidiary company tax implications: Certain countries prove ideal for registering a subsidiary to act as a payment-provider, where a standard corporate tax rat is only applicable to taxable profits. In those cases, total tax costs can vary depending on your financial structures. We can advise you on the most optimal structures to reduce your payable tax costs.
  • International tax implications: It’s important to structure the agreement in compliance with international tax regulations and to set it up to avoid triggered transfer pricing issues.

Benefits of Obtaining a Tobique Gambling License

Choosing to obtain a Tobique betting license comes with a host of advantages:

  1. Speed: The process is quick and efficient, allowing a license to be issued within four weeks (Excluding company incorporation time).
  2. Cost-Efficiency: Getting a Tobique casino license is straightforward and competitively priced.
  3. Global Reach: Possessing a Tobique gaming license allows you to offer online casino services globally, with only a few prohibited countries expanded below.
  4. Favorable Tax Structure: There are no gaming taxes imposed on your profits; all you pay are annual fees, making it an affordable option for startups.

Which Jurisdiction should you choose for your gaming license?

JurisdictionTobiqueCuracaoAnjouanGibraltarMalta
Licensing AuthorityTobique Gaming CommissionCuracao Gaming Control BoardAnjouan Betting and Gaming Regulatory CommissionGibraltar Gambling CommissionerMalta Gaming Authority
Licensing Time4-6 Weeks2-3 Months3-4 Weeks3-6 Months6-12 Months
Annual Application Costs*€36,000 for the first year, then €16,000.€20,000 – €32,000 **€15,000 – €20,000€140,000 – €180,000€80,000 – €100,000
ReachGlobal with some restricted countries.Global with some restricted countries.Global with some restricted countries.Unrestricted to countries without a legal ban on gaming.Unrestricted to countries without a legal ban on gaming.

*: The fees indicated here only reflect the application fees, and do not include other expenditures such as company formation costs, staff, etc. Please ear in mind that the total expenditure per license will to be more than what’s indicated in the annual application costs, as there are other payments that need to be accounted for.

**:
Under the new GCB regulations, the total costs of obtaining and maintaining a Curacao gaming license are projected to increase sharply. Costs are expected to range up to €100,000 per year, including company formation costs, staffing costs, etc.

Frequently Asked Questions (FAQs)

  • How much does a Tobique gaming license cost?

The application for the Tobique gaming license costs around €36,000 for the first year and €18,000 for the following years. This does not include external costs such as those associated with company registration, staffing, etc..

  • How do I apply for the Tobique gaming license?

Applying for the license is a very straightforward process, and a professional consultancy firm such as GFLO can help you streamline every step of the process.

  • What are the different types of licenses in Tobique?
  1. Remote Gaming License (B2C): This license covers online gaming operators who offer their services directly to customers.
  2. Casino or Sports Wagering Software License (B2B): This license is for software providers who develop and supply online casino or sports betting platforms to other operators.
  3. Approved Vendor Status for Services (B2B): For other B2B vendors.
  • What are the countries that restrict the Tobique gaming license?

The UK, USA, Ontario, New Brunswick, and FATF-sanctioned countries.

Important:

License holders must conduct their own due diligence to ensure their services comply with all applicable local laws, rules, and regulations.

  • How many URLs are included with a license?

The license fee includes two (2) URLs. Additional URLs can be added at a cost.

  • Do I need to set up a company in Tobique to obtain the gambling license?

No, you do not need a company registered in Tobique. We generally have certain countries we’d recommend for registration, but other companies can be approved.

  • Why is it recommended that a company be set up in your recommended countries?

We choose our recommended countries based on their tax criteria. Some countries have a very favorable set of conditions that allow you to minimize taxes or levies on the revenue you generate. All in all, our recommendations can provide an attractive offshore tax structure.

  • What documents do I need to apply for a Tobique gaming license?
  1. Proof of Incorporation / Registration.
  2. List of directors and authorized signatories with certified proof of ID and address.
  3. Proof of ownership and UBO information.
  4. Various policies and procedures (Financial Crime, Responsible Gambling, Privacy Policy, etc.)
  5. Business plan and T&Cs (For B2C applications)
  6. Technical Compliance Form
  7. Proof of domain registration.
  8. Detailed diagram of services to be licensed.
  9. Confirmation (if applicable) of any other licenses held.
  10. List of third-party suppliers and agreements.

GFLO Consultancy: We Can Help You Get your Tobique Gaming License

We’re experienced in supporting our clients when it comes to obtaining gambling licenses across several jurisdictions. Our team consists of highly qualified experts with years of experience and knowledge of international gaming legislation and licensing procedures.

We have it down to a science.

Want to get further insights?

Schedule your free consultation with our expert!

Diane

Diane, partner of GFLO Consultancy

Our Approach

We focus on providing our clients with a top-quality, personalized service.

What this means is that we don’t offer a one-size-fits-all approach. Instead, we actually take the time to understand your unique needs, goals, and positioning.

Our experience in the field allows us to develop individual, personalized licensing strategies tailored to each client’s specific objectives.

What We can Offer

  1. Expert Consultation: We can offer you guidance throughout every stage of the gambling license process. From registering your companies, to preparing your documents, to the technical testing – We have you covered.
  2. Personalized Approach: Our team will take the time to create a strategy that fits your business’ unique needs. No “off-the-shelf” services, our services are tailored specifically to your business.
  3. Reliable Support, Every Step of the Way: We accompany clients through every stage of the process, guaranteeing complete transparency, and smooth communication.

Why GFLO?

  1. Deep Industry Insights: We consistently track legislative changes for gambling licenses, and always provide up-to-date, precise recommendations.
  2. Proven Track Record: We’ve successfully assisted many clients to obtain gambling licenses. Ranging from the Curacao Gaming License, to the much more exclusive Malta Gambling License.
  3. Reliability & Integrity: We make sure to give every project the focus it deserves. We value long-term relationships based on mutual trust.

Conclusion

To wrap up, The Tobique casino license is a very attractive option for new startups and entrepreneurs in the online gambling space. It’s relatively new; as such, license holders can expect it to grow and become more widely accepted.

While it’s not a premium option such as the Gibraltar gambling license or the exclusive Malta gaming license, it has a much more straightforward and flexible approval process, a much lower price point, and a faster approval time—making it the ideal option for startups in the wake of the regulatory changes to Curacao’s online casino license.

GFLO Consultancy is your reliable partner to obtain a gambling license in Tobique. We offer our expert support, and also understand the importance of each step to achieving long-term success in the highly-dynamic, online gambling industry.

GFLO Consultancy experts are pleased to assist and help you with any inquiries, just get in touch or leave a request through the form right below.

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