Poker is the most popular card game available in the world. It has the largest audience and numerous variations to cater to players. Starting a poker business varies slightly from starting an online casino. The regulations surrounding card games must be navigated carefully to ensure that you are on the right side of the law. Running an illegal poker business carries a penalty of heavy fines or jail time depending on your jurisdiction. In this guide, you will learn the strategies you need to traverse the regulatory landscape of the poker world skillfully. Let’s dive right in!
Regulatory Landscape
Before you start a poker business, you must understand the regulatory context of your jurisdiction. Depending on the size of the poker business you have envisioned, you may need to familiarize yourself with the regulatory context of more than one jurisdiction. The regulatory framework is shaped by cultural, economic, political, and historical contexts. Because you are building your poker business, you will be considered an operator moving forward. Therefore, you must understand the legalities binding operators and what is expected of you. The regulatory landscape of most jurisdictions is broken down into:
Licensing
Licenses provide the framework within which you can manage your business, and it covers the games you are allowed to host, prize money, and the size of tables. If you plan to acquire a niche poker license, you must understand that you will not be allowed to host other types of card or casino games using this license. Doing this will result in a breach of your license and it will be revoked. You could also face other charges for breach of your license agreement. If you think you may want to host other games later down the line, getting a general casino license may be your best bet but this is a costlier option.
Taxation
You must understand how your taxes are to be paid to the government. The taxation schemes used by jurisdictions differ as different metrics are used to calculate the taxes due. Some regulators will collect taxes on your profits while others will collect taxes on your revenue. The taxation information is freely available on the website of the regulator for your chosen jurisdiction. It is also good practice to hire a taxation consultant to help interpret what is expected of you. This will help you to simplify the taxation process and keep you compliant.
AML (Anti-Money Laundry) Regulations
As a poker business owner, it is your responsibility to prevent money laundry activities within your hosted games. This includes strictly adhering to the policy document provided by the regulator. It is no surprise that gambling is one of the most regulated sectors in the world. AML regulations include due diligence, monitoring, and reporting of suspicious activities. If you do not follow these regulations, you risk sanctions, legal liabilities, and damage to your operational reputation. It is prudent to have a dedicated team focusing on ensuring your poker business follows these regulations to the letter of the law.
Player Protection
As an operator, your players are your responsibility. Therefore, you must put the right mechanisms in place to ensure that they are protected when they gamble on your tables. You will collect various personal data such as age, identity, and financial information. You must ensure that these data points are protected with the best security measures available. Furthermore, it is your responsibility to implement responsible gambling measures that protect your players from gambling addiction. In some jurisdictions, responsible gambling measures are mandated while it is loosely enforced in others. Learn what is required by your jurisdiction while setting up your poker business so you are on the right side of the law.
The regulatory challenges you may face when setting up your poker business boil down to your regulator. There is no universal law guiding the establishment of poker businesses so you must familiarize yourself with what is expected of you within your jurisdiction. If you intend to serve players in multiple jurisdictions, you will have to ensure your business is compliant with all the regulations within those jurisdictions. Whenever it is necessary, you should seek the guidance of a consultant or a specialist in certain areas. Although this may result in an increase in our initial costs, it will result in fewer regulatory headaches for you in the future. Have fun constructing!
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