Licensed vs. Unlicensed Online Casinos: Key Differences

With every passing day, the hype around online gambling is rising as people are looking for online casino platforms. While numerous sites are available for players worldwide, signing up anywhere may not be safe. The critical factor influencing your decision is whether your chosen casino has a valid license or not. Let’s discover what the main differences between these are!

Safety and Security Benefits of Licensed Casino Sites

A gambling license enforces casinos to abide by specific guidelines and operate as any typical legitimate business venture. On the other hand, any gambling authority does not regulate the actions of unlicensed casinos, thus making them a wrong choice for users.

When a casino bears a license, it has to meet set standards, guarantee the security of funds, and ensure a safe and fair gaming experience for its users. Since licensed casinos are safe and reliable for players, you must always choose a casino with an operational license.

Now, we discuss why picking a licensed casino is paramount and how they set themselves apart from gambling portals without a license.

High Operating Standards

Not every casino license is the same. While some are local licenses that allow operators to function in a restricted jurisdiction, the more prominent licenses, like those of the UK Gambling Commission (UKGC) or the Malta Gaming Authority (MGA), let casinos operate in multiple locations.

These regulatory bodies impose stringent standards on the working of a casino to ensure complete player safety. For example, there are guidelines that decide how your casino funds are used, how your personal and financial information is safeguarded, and even how the payouts and RTPs on casino games can vary.

So, they can function properly only when all of these instructions are followed; otherwise, they must bear legal punishment. Since these licensed betting operators undergo regular screenings, audits, and external security checks, they offer a safe gambling environment for users.

Player Fund Safeguards

The players’ funds deposited at a casino are vital and must be well-protected. Various licenses determine how a user’s funds can be used when deposited on a casino platform.

The UKGC license has a rigorous abiding policy and offers drastic player protection. They mandate the segregation of a player’s funds; that is, a casino must hold its customer’s funds in a separate client banking account, and the provision must be such that the user can use it for placing a bet whenever they want.

The MGA license also provides ample player fund protection as it calls for the segregation of funds and requires casinos to undergo frequent financial audits. Thus, the financial stability of the casinos is adequately ensured by both of these licenses.

While both regulatory bodies offer third-party resolution services when players face fund-related problems, the Curacao Gaming Commission offers limited fund protection. This is because they call for segregating players’ accounts, but the dispute resolution is left to the casino operators themselves. Since their guidelines, norms, and penalties against the non-compliant casinos are minimal, players must be extra alert while signing up on a gambling site with a Curacao eGaming license.

The other licenses that provide users with fund protection and security services are those offered by the Gibraltar Gambling Commissioner (GGC) and Alderney Gambling Control Commission (AGCC). Both have a comprehensive licensing procedure and ensure fund protection via regular security checks.

Fair Gameplay Guarantees

Procuring a valid gambling license requires casinos to ensure a well-built and standard portal that meets all requirements. They must subscribe to fair gameplay practices and undertake several measures. For example, certified computer-based Random Number Generators (RNGs) are extremely important as they generate random wins for players. These RNG mechanisms are checked randomly and regularly to ensure the legitimacy of the process. Thus, the system becomes transparent, and the gaming mechanisms cannot be rigged.

The licenses safeguard players’ rights, enforce distinct gambling regulations that are anti-money laundering, and promote responsible gambling.

Taking Accountability with Complaints

Since gambling licenses strive to provide a safe and secure gambling process to all casino users, their legal enforcement is generally quite strict. Bodies like eCogra (an internationally accepted testing agency) conduct regular inspections and testing of the gambling software used by their registered casinos. So, they offer a seal of approval on the fairness of a casino.

Most key operating licenses offer paramount protection to users and allow them to lodge complaints against any casino operator if they’ve been wronged. However, not all licensing bodies offer the resolution of disputes to grant justice to players. Learn which licenses provide maximum accountability in all aspects:

• The UK Gambling Commission (UKGC) License: This is one of the most rigorous licenses offered to online casinos, as they have strict licensing requirements and conduct thorough regulatory checks. The license requires casino operators to provide third-party dispute resolution solutions when a player complains. If their guidelines are not followed, the operators are massively penalized and might even lose their licenses.
• Malta Gaming Authority (MGA): One of the most popular licenses, this one is difficult to obtain, as their licensing criteria are pretty stringent. The license has a solid repute in the gambling industry and offers resolution services in case a complaint is lodged. There is substantial punishment once there’s a breach in the operating process of the licensed casino.

The gambling authorities with a slightly less rigid enforcement system are as follows:

• Gibraltar Gambling Commission (GGC): A well-reputed regulatory body, they have a thorough licensing process. They mainly promote responsible gambling and provide direct resolution services in the case of disputes. Legal punishment awaits the operators who do not abide by their standards.
• Alderney Gambling Control Commission (AGCC): Much like the GGC, the AGCC also has a comprehensive licensing and monitoring system for the best online casino operators. They also take accountability for any problem users face and offer mediation services once a complaint is issued.

The license that offers the least accountability and is, hence, the loosest is the Curacao eGaming license. Their guidelines and screening procedures are less strict than other bodies. They don’t assume responsibility for any problem the gamblers face and leave the dispute resolution process in the hands of the specific operator. Since the legal punishments against non-compliant casinos are minimal, the license doesn’t provide much security to bettors.

Risks of Playing at Unlicensed Casinos

Playing at unlicensed online casinos is a ‘big no’ for all gamblers. Not all casino sites are reliable, and those operating without a license are not obligated to abide by the prescribed standards. So, playing at these unstable sites leads to risky or missing payouts, and players’ personal information may also be at risk. You might face the following problems while engaging in an unlicensed casino:

• Game and Software Manipulation: Since standard requirements do not bind these casinos, the gameplay on these sites might be rigged. There is no guarantee that the software will function correctly or that gaming systems will be efficient. Thus, you might lose your money.
• Volatile, Unreliable Websites: Unlicensed casinos do not maintain transparency in dealings, and since they are not legitimate, the websites are unreliable. For example, they might promise a bonus after a specific deposit, but you might not receive it even after depositing the required funds. Moreover, such websites might cease to exist at any time.
• Slow or Missing Payouts: Players’ most prominent problem with unlicensed gambling websites is withdrawing payouts from their gameplay accounts. Extracting your payouts might take a lot of time, and in some cases, you may not even receive your funds. And the worst part: You cannot do much about it!

How to Identify Properly Licensed Casino Sites?

Protecting yourself while placing an online wager is the most crucial of all. Our experts offer tips for dedicated readers to stay safe online while gambling at web casinos. If you’re wondering how to understand whether a casino is well-regulated, we’ve got you covered:

1. Consult Expert Casino Reviews: Read many reviews before signing up on any legal online casino site. Go through both expert and player reviews to gain an idea regarding the overall casino’s performance. This way, you can also learn whether the casino is user-friendly, assures fast payouts, and is a reliable player option.
2. Check Official National License Registries: Visit the National License Registry site to check the gambling business register and guarantee the validity of your chosen casino’s license. Also, remember to check the duration the license has been issued.
3. Look for License Logos and Certificates on the Site: Visit your preferred casino’s official site and scroll to the bottom. Check for the name and logo of the license-issuing body. Then, visit the authority’s website and check if the license is legitimate. Sign up on the platform only after guaranteeing its legitimacy.

Our Recommended Licensed Casino Operators

Regarding online gambling portals, there are many casinos for players. However, the top three trusted online casino portals that are brilliant options for safe and legal real-money gameplay are the following:

1. Free Spino – Trustworthy casino licensed in Curacao. You can always see the promotional offers available at Free Spino Casino to spice things up.
2. Bet1000 – another top Curacao licensed casino with a generous number of bonuses.