When it comes to international banking, one of the most challenging scenarios is trying to open a bank account for a gambling company.
There are a few other scenarios that are more difficult to overcome, but gambling is definitely in the high-risk category and is viewed as undesirable by banks.
Unfortunately, it won’t be as easy as if you were to open a UK bank account.
In this article, we’re going to explore some of the challenges you’ll face when trying to open a bank account for a gaming venture, specifically a UK company bank account as a non-resident gambling business owner. And, share some solutions you might be able to use to open bank accounts successfully.
Feel free to use the table of contents to jump ahead to any sections that are immediately relevant to your search.
Table of Contents
- Gambling Industry: Opening Bank Accounts for Gambling Companies
- Where Can You Open a Gambling Company Bank Account?
- Frequently Asked Gambling Business Banking Questions
- Do You Want Help Opening Bank Accounts?
Gambling Industry: Opening Bank Accounts for Gambling Companies
Opening bank accounts for gambling companies is 100% possible as long as you choose the right bank, meet the bank’s account opening requirements, and have a suitable client profile. Not all banks onboard gambling companies. Bank selection will be an important factor to consider when choosing where to open a business bank account.
Before diving into how to apply for a corporate bank account as a foreigner, specifically a business bank account as a non-UK resident (or business owner), let’s look at why gambling companies are considered high-risk from a banking perspective, to begin with.
First, when discussing gambling companies, we’re usually talking about online gambling platforms that are engaged in gambling-related services. So, we’re not talking about brick-and-mortar casinos, though these are considered high-risk from a bank perspective as well.
So, why are online gambling sites considered high-risk by banks?
Well, there are a few reasons…
First, online gambling sites are generally unregulated websites that serve clients from around the world. This makes monitoring inbound and outbound transactions very challenging (if not impossible) and presents many different jurisdiction risks for banks to consider.
Additionally, in certain instances, criminals use online gambling sites to make illicit transfers between different parties by agreeing to losses ahead of time (e.g. in a poker match), or by simply depositing funds into someone else’s betting account.
In other words, even if the person running the site is doing so with completely legitimate intentions, it’s still possible for the online gambling site to be used for illegal activities. And, in most cases, this would take place without the knowledge of the site owner. But, just because the site owner is unaware of these activities taking place, doesn’t make the activity any less illegal or high-risk.
Secondly, online gambling sites are also prone to higher chargeback and refund rates than most business types, which makes them a higher risk to both gambling-friendly banks and gaming payment service providers.
With this in mind, given the ease (and scale) at which such unregulated activity, illicit transfers, fraud, chargebacks, and more can occur, gambling companies are considered some of the highest-risk businesses from a banking perspective.
Alternatively, if you have questions on who needs to open an account for their business, specifically if a limited company needs a business bank account, click this link to access our free guide. We share everything you need to know on this topic specifically.
Before diving in, if this is your first time visiting GlobalBanks, don’t forget to download your FREE Business Banking Starter Guide. It’s designed to help your business find and open accounts with the services you need around the world.
Where Can You Open a Gambling Company Bank Account?
The question of where to open a bank account for online gambling companies is very difficult to answer. And, in most cases, the options available need to be evaluated on a case-by-case basis and depend on several factors.
In many cases, online gambling and gaming companies will not have any banking options available to them. This is often the case when an entrepreneur sets up a gambling company but doesn’t fully understand the risks associated with their business model from a banking or payments perspective.
Additionally, because it’s a new business, the company often doesn’t have significant (or predictable) turnover needed to de-risk their business or make their business attractive enough to the banks that might consider clients in their industry.
As a result, entrepreneurs with small gambling operations are often forced to consider other alternatives that are more accepting of a high risk industry. However, such alternative options generally charge very high fees for reviewing applications, conducting due diligence, opening (and closing) bank accounts, sending and receiving transactions, and monthly account maintenance.
In other words, if you have a small online gaming company and you’re looking for banking options, you should be prepared to pay for the privilege of opening an account. If you are unwilling to pay the necessary fees or you don’t have a sizable turnover to make your business attractive to banks, you may want to consider modifying your business model, restructuring or switching to a different industry.
Frequently Asked Gambling Business Banking Questions
Below are two of the most common questions we receive from people exploring how to open a bank account for a gambling company. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
Can I Open an Online Business Bank Account For Gambling Companies?
In certain instances, you can open an online business bank account for a gambling online company. However, you will need to complete onerous due diligence and onboarding processes and meet the financial requirements of the bank you’re looking to open with.
Are Gaming Companies Too High-Risk for a Business Account?
If you can meet account opening requirements and pass due diligence, it is possible to open a business account for an online gaming company. However, to do so, the bank will need to understand your business, shareholder, and director profiles, your internal compliance policies and procedures, and the safeguards that are in place to protect your business (and the bank) from counterparty risks.
Do You Want Help Opening Bank Accounts?
If so, you can access GlobalBanks Insider and start the process of applying for an offshore account in a few clicks.
GlobalBanks Insider is a dedicated account opening solution that involves direct support from our team and direct introductions to the banks of your choosing. It gives you instant access to the…
+ Direct support from a team of banking experts
+ Direct introductions to your desired banks
+ Answers to your most pressing questions and challenges
+ Expert insights on which banks to choose & why
+ Plus FULL access to our entire suite of account opening tools and intelligence!
And “yes!” GlobalBanks Insider is designed to help foreign and non-resident individuals and companies open bank accounts.
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