Gibraltar Gives Relax Gaming the Okay in B2B
Licensing in the online gambling industry is extremely important. There isn’t one global standard. It’s on both site operators and software companies to go around and get licenses from each jurisdiction they target.
However, it’s not quite that simple since there are different types of licenses, and licenses from individual places are often limited in number.
To make things more complicated, very different standards are used when it comes to one regulatory jurisdiction compared to another.
That’s why it’s impressive that Relax Gaming has acquired yet another high-level license. This time, it’s a license for B2B activities from the Gibraltar Licensing Authority (the GLA for short). Because these licenses are such a critical part of their overall expansion strategy, this news is a pretty big deal. It shows that they are implementing that strategy effectively and that they are making progress towards getting much bigger.
What This License Actually Means
For the most part, and with some exceptions, there are two main types of licenses in the online gambling industry. For online casinos in particular, there are B2B and B2C licenses. They authorize a company to do two different types of business along the following lines:
- Business to Customer (B2C): The company can offer services directly to players (casino operators primarily).
- Business to Business (B2B): The company can offer services directly to other businesses (software providers primarily).
Since Relax Gaming isn’t in the business of running online casinos, the B2B license is what they want. This is the area they focus on, and it’s the area they want to expand inside of.
It’s also worth mentioning that some jurisdictions, generally less reputable ones, don’t actually make a distinction between the two. They wrap everything together into a single license instead.
Relax Gaming’s Expansion Strategy
We mentioned up above that this software company already has multiple other licenses in place. This includes those from the Romanian National Gaming Office as well as the UK Gambling Commission and the Malta Gaming Authority. The licenses from the UKGC and the MGA are generally considered two of the most important that an online gambling company of any kind can have. Along with the GLA license that they have acquired the most recently, they are often called the “Big Three” by industry professionals and for good reason.
This is the case because, historically speaking, the GLA and MGA licenses have been reputable going back a very long time. The UKGC license isn’t as old as the other two, but they have what’s generally considered the strictest standards and enforcement that you’ll find anywhere.
As a result of getting all three of these licenses, something important will happen. They are going to be taken extremely seriously by regulators in places they haven’t gotten into just yet. This will allow them to expand more quickly by getting approved for additional licenses more quickly.
Building Trust and Authority
The biggest reason that this news helps Relax Gaming with their expansion strategy is that it establishes two things: authority and trust. Both of these are absolutely critical for a software developer that wants to rise to the top.
This level of trust and authority makes it much easier to create new deals with other operators and software providers for them to offer their games. It also makes it easier to get more licenses in the future. People are much more willing to do business with a company that goes out of their way to prove how reliable they are, and that’s exactly what’s happened here. By getting the last license of the “Big Three,” they have taken a massive step toward proving that they are here to stay and that they will be reliable over the long run.