Blockchain technology is revolutionising various industries, and the gambling sector is no exception. As a leading authority in licensing and regulation, SolutionsHub has been at the forefront of this transformation, guiding numerous businesses through the intricate process of acquiring a blockchain gambling license.
Based in Douglas, Isle of Man, our team has successfully navigated the stringent regulations of one of the world’s most stringent jurisdictions.
Lee Hills, Founder and CEO of SolutionsHub provides the history, differentiators, licensing process and future of Blockchain gambling licensing.
Our Experience in Blockchain Gambling Licensing
SolutionsHub has had the privilege of working with innovative blockchain gambling businesses, helping them to secure a license.
Our unique insight into the licensing process allows us to anticipate and address the questions that the Isle of Man Gambling Supervision Commission (“GSC”) is likely to ask during its application process.
The Licensing Process
The licensing process typically takes 12 weeks. The time to prepare the licence application can vary, however, depending on the urgency and accuracy of information from the customer.
Our goal is always to submit the most comprehensive application possible to the regulator. Our team includes former GSC Inspectors, so we are able to view the application very much from the regulator’s perspective, ensuring all potential questions are preemptively considered and addressed.
Blockchain in Gambling: The Main Differences
When blockchain is involved in a gambling license application, several key differences come into play. These primarily revolve around the use of the operator’s native token, its stability, and its usage.
Additionally, player protection mechanisms require careful consideration, as segregating player funds, which is a requirement under the Isle of Man’s online gambling licence, is not as straightforward as opening a fiat bank account.
The Operator’s platform and the use of any smart contracts must also undergo rigorous testing to ensure compliance with the required standards and to verify that the smart contracts function as intended.
Blockchain-Based vs. Blockchain-Utilising Projects
The licensing process also differs based on whether a project is entirely blockchain-based or merely utilises blockchain/crypto technology.
For decentralised blockchains, only certain elements of the platform can be hosted on Isle Of Man servers due to the blockchain’s decentralised nature. Independent testing must be tailored accordingly.
Some clients operate their own private blockchains to enhance transaction processing speed, while others with native tokens interact with decentralised blockchains to record transactions in the public ledger. Understanding the client’s desired model and adjusting it to meet legislative requirements is crucial in this respect.
Why the Isle of Man?
The Isle of Man is an attractive destination for blockchain-based businesses, due to its approachable regulator, which is open to new ideas and unique business models.
The proof is evidenced in the first decentralised gambling licence, issued by the GSC in 2017 and the many more crypto and blockchain gambling licences SolutionsHub has helped to secure in the years that have followed.
The Isle of Man Department of Enterprise and Digital Isle of Man agencies actively work to attract new businesses to the Island and offering their support and guidance at every stage.
The Future of Blockchain and Gambling
Blockchain technology and gambling are seen by many as a perfect match. Blockchain’s transparent, unalterable record of transactions, coupled with its distributed architecture, makes it an ideal solution for the gambling industry.
As the technology has developed, improvements in speed and efficiency are leading to faster confirmation times. We are already witnessing a shift in license applications from traditional fiat models to blockchain and crypto-related models; a trend we at SolutionsHub expect to continue.
For more information on how SolutionsHub can assist your business in navigating the blockchain gambling licensing process, please click the following link to book a consultation now.