UA
RU
ENHow it works
The country issues its own licence, and an international one does not replace it. Countries with their own licences include, for example, the UK, Sweden, Denmark, Spain, Italy, the Netherlands and Ukraine. The name dot-country comes from the local domain: in some of these markets the brand operates on a site under the country's domain.
Local rules usually cover four things:
- Tax: on GGR or on turnover, with the rate and base set by law.
- Bonuses: a cap on the wagering requirement, bans on certain types of offer.
- Advertising: where, when and to whom it can be shown.
- Responsible gambling: mandatory limits, often a national self-exclusion register.
An operator with an offshore licence shuts such a country out with geo-blocking. Sometimes operators enter the market through a local licensee's white label, if the law allows it.
Formula and example
Bonus rules change the economics too. A €100 bonus with x40 wagering requires €4,000 in bets, with x10 only €1,000: the bonus conversion rate is higher, and an offer of the same size costs more. The bonus grid is recalculated for the market, for example in the bonus cost calculator.
Pros and cons for the operator
Pros: legal access to the country, advertising and partners within the rules, local banks and payment methods, player trust. The business is built for the long term, with no risk of the site or payments being blocked.
Cons: tax, the cost of the licence and compliance, restrictions on bonuses and advertising, competition with big local brands. Because of the tax, less of the GGR stays with the operator, and a CRM mistake, such as a bonus for a player on the self-exclusion register, can lead to a fine.
Common mistakes
- Carrying over the offshore bonus grid. Wagering at x40 and the usual offers break the rules in a market with an x10 cap. The grid is rebuilt from scratch for the market.
- Planning before tax. On GGR the market looks profitable, but NGR after tax and bonuses may not pay back the cost of entry.
- Entering the country before getting a licence. Accepting players without a local licence can lead to blocking and fines, and in some markets this history is taken into account when the operator later applies for a licence.