A thorough explanation of how online casinos operate, how to identify a license and illegality

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How Online Casinos Operate

Online casinos are gaining recognition in Japan, and the number of players who actually play them is increasing.

So, in this article, we will explain in detail the structure of online casino operations and licensing. We will also tell you about the illegality that you should check when playing online casinos, so please refer to it. However, we recommend checking for casino reviews and comparisons from a site like TheSoho before selecting an online casino to ensure that you will be playing at a trusted site.

How does an online casino operate?

First, let’s take a look at how online casinos operate.

  • Online Casino Management
  • Player
  • Payment Service Company
  • Game Software Company
  • Government & Audit Institutions

The following is an explanation based on the five elements of:

Online Casino Management

How Online Casinos Operate - Online Casino Management (One of the most important aspects of Operating an Online Casino)
How Online Casinos Operate – Online Casino Management (One of the most important aspects of Operating an Online Casino)

As the name implies, online casinos are casinos that are operated online. The main feature of online casinos is that you can easily play real gambling games with just a smartphone or a computer as long as you have internet access.

Also, in order to operate an online casino, you need to obtain an operating license issued by a country such as Malta or Gibraltar.

Be aware that online casinos that operate without a license are at high risk of being cheated and, of course, maybe illegal.

The requirements for obtaining an operating license are quite strict

The criteria for obtaining a license to operate vary depending on the country in which the license is to be obtained, but in general, they are strictly screened. The following five points are the main screening criteria.

  • The operating company has sufficient funds.
  • The operating company has management skills.
  • The game is not rigged and fairness is ensured.
  • There are mechanisms to prevent money laundering and fraud.
  • There is a system to ensure compliance with laws and regulations.

Among the operating licenses, the following three are the main ones that are said to have strict screening and high reliability.

License Issuing Organization License Expiration Date Features
Republic of Malta5 yearsParticularly difficult to acquire – Many online casinos have acquired
Kanawake Casino Licensing2 yearsThe expiration date is short, so the renewal frequency is high.
Gibraltarunder investigationHigh cost of license maintenance

 

When choosing an online casino, be sure to pay attention to the licenses they have.

There are also other reliable licenses, so check out the differences between them.

Republic of Malta

Malta, officially the Republic of Malta, is a southern European republic, a member of the European Union, and a mini-state located in the Mediterranean Sea whose main industry is issuing licenses to operate online casinos.

We started issuing licenses to operate online casinos in 2000, and have made a name for ourselves all over the world for our rigorous screening process.

With Malta’s various low tax rates and other factors, companies that operate online casinos in Malta, or gaming provider companies, can benefit.

Online casino sites with a casino license from the Republic of Malta

  • Casino Secrets
  • Cherry Casino
  • Lucky Nicky, etc.
Curaçao (island)

The island of Curaçao is a constituent country of the Netherlands in the Caribbean and has been issuing online casino licenses since 1993.

If the casino site displays the Curaçao “eGaming” license on its homepage, it means that it has gone through a rigorous review process and is regularly audited by the Curaçao authorities.

Online casino sites with a casino license in Curaçao

  • Vera John Casino
  • InterCasino
  • kajika frog (Buergeria buergeri)
  • Casinos Casinos, etc.
Gibraltar

The Gibraltar license is a high-grade license that can be considered a top-notch online casino license.

Since the government conducts direct investigations and grants licenses based on the company’s track record, online casino companies that do not have a proven track record are unlikely to obtain one.

In addition, the license is famous for its high maintenance cost, so you need to have stability in terms of management.

Online casino sites with a casino license in Gibraltar

  • William Hill
  • 32Red
Kanawake Casino Licensing

Kanawake is a casino licensing jurisdiction of the Gaming Commission of the Kanawake government in Quebec, Canada.

It has a long history of issuing licenses since 1999, and it is a highly trusted license, as it has taken its players seriously by properly addressing player complaints and issues in 2012.

Online casino sites with a Kanawake casino license.

  • Paisa Casino
Republic of the Philippines

The Philippines is the only country in Asia that issues casino licenses, and the national agency “PAGCOR” has jurisdiction over casino licenses.

In January 2018, President Duterte banned PAGCOR from issuing new casino licenses in the Philippines due to the saturation of online and land casino companies operating without licenses in the country.

The ban was later lifted only in the Clark Special Economic Zone (CSEZ).

We have been issuing casino licenses since 2002, so we can say that we are highly reliable.

Online casino sites with a Philippine casino license

  • Zipangu Casino

Government & auditing agencies monitor the operation of online casinos to ensure neutrality

As explained above, the government (country) issues operating licenses to prevent fraud and prove the reliability of online casinos.

On the other hand, an auditing organization is a third party that controls the fairness of the game and the proper payment of winnings. The following are the four main auditing organizations.

Name of auditing organization Features & Screening Criteria
eCOGRAAudit organization of non-profit organization (established in 2003)

If there are any deficiencies, the certification will be rejected.

Review whether the game is fair and payment is acceptable.

GLILargest screening organization (launched in 2010)

Reviewing the winning probability values of games

iTech LabsMainly check online games.

Examine whether the game works according to the rules and reflects the correct winning amount.

GAMCAREA private organization in the UK

Provide advice and support to those suffering from gambling addiction.

 

This is another indicator of where online casinos are focusing their efforts, so it is one of the major reference materials.

How does the player actually play?

You can actually play online casino gambling and earn profits if you win. The actual process is

  1. Register with an online casino
  2. Deposit using a credit card or payment service
  3. Play games with the funds you have deposited.
  4. Withdraw victory money by payment service or bank transfer.

This is how it works. Recently, Vera John Casino has started accepting withdrawals to Japanese bank accounts, making it easier for Japanese people to play.

The most famous payment service companies are ecoPayz and iwallet

Payment services are used by players to deposit and withdraw money from online casinos. The main payment services are

  • ecoPayz
  • iwallet
  • VenusPoint (ヴィーナスポイント)

There are three types of payment services. Each payment service has different usability, fees, and upper and lower limits, so make sure you choose the one that suits you best.

Game software companies will distribute/provide games to each on-call operator

It is the gaming software companies that contract with online casinos to provide the software for the games. The following is a list of major gaming software companies.

Here are some of the features of the games released by each software company.

Evolution Gaming

Founded in 2006, Evolution Gaming is now the industry’s leading software company specializing in “live casino”.

The casino has a variety of features that make you feel like you are in a real casino, including an automatic shuffle machine that allows you to enjoy the games quickly.

Most of the online casino sites that are popular among Japanese players use Evolution Gaming, which is also very popular among players.

MicroGaming

Microgaming is a very popular gaming software company in the online casino industry that was founded in 1994.

It offers a wide range of games, from the popular casino games of slots, baccarat, and video poker to live casino. It has been highly rated by many players for many years because it discloses payout percentages and allows players to enjoy high-class games in a stable internet environment.

Playtech

Playtech is a leading software company that produces gaming software for online casinos, online games, and social networking games, having launched its company and services in 1999 in the Isle of Man, UK.

It is a blue-chip company that has been listed on the London Stock Exchange since 2006, and it would not be an exaggeration to say that it is used by most online casino sites.

Many games are available in Japanese, so even those who do not understand English can play without worry.

NETENT

NetEnt is one of the oldest software companies, headquartered in Malta and founded in 1996.

The game is designed to be so simple that even beginners can play without a manual, with as few buttons as possible except for the necessary ones, such as the typical “Starburst” and “Twin Spin”.

NetEnt’s payout ratio of 95-98% is a great number for players, and the software company has many fans.

Two recommended online casinos (ギャンブル おすすめ)

In this section, we will introduce two online casinos that are reliable and highly recommended.

  • Vera John Casino (ベラジョンカジノ)
  • Casino Secret (シークレットカジノ)

If you are wondering which online casino to play at, please take a look.

Vera John Casino (ベラジョンカジノ)

Vera John is one of the largest online casinos in the world, with TV commercials airing overseas, and it is the No. 1 online casino in Japan, supported by many players.

  • The official website and support are available in Japanese.
  • Plenty of great bonuses are available.
  • Many games to play.

The following table summarizes the features. The features are summarized in the table below.

Casino NameVera John Casino (ベラジョンカジノ)
Management CompanyDumarca Gaming Ltd.
Types of GamesTable Games, Slots, Slingo, Live Casino
Number of gamesAbout 1,300 pieces
Licensed to operateRepublic of Malta

 

Casino Secret (シークレットカジノ)

Casino Secret is a new online casino that opened in July of 018. The main features are:

  • Bonus is reflected as cash (no withdrawal requirement)
  • Instant cashback system allows you to get some of your money back even if you lose.

In addition, Japanese only tournaments are held on a regular basis, making it an easy online casino for Japanese to play at.

Casino NameCasino Secret  (シークレットカジノ)
Management CompanyDumarca Gaming Ltd.
Types of GamesTable games, video poker, slots, live casino
Number of gamesAbout 1200 pieces
Licensed to operateRepublic of Malta