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 company bank account as a non-resident.
In this article, we’re going to explore some of the challenges you’ll face when trying to open a bank account for a gambling business. 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 for a Gambling Business?
Gambling Industry: Opening Bank Accounts for Gambling Companies
Before diving into bank account opening considerations, 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.
Do You Want to Explore All Your Offshore Banking Options?
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 for a Gambling Business?
If so, you can get access to GlobalBanks IQ in just a few clicks.
GlobalBanks IQ is our flagship international account opening solution. It gives you instant access to the…
+ Expert insights on which banks to choose & why
+ Step-by-step reports to open bank accounts in the best banking hubs
+ GlobalBanks international bank database & detailed bank profiles
+ Tried & tested banks for high-risk, offshore, & non-resident clients
+ Plus, get YOUR most pressing account opening questions answered by our team!
And “yes!” GlobalBanks IQ helps foreigners and non-resident individuals open a bank account.
In fact, GlobalBanks IQ even helps non-resident, foreign & offshore entities open a bank account.
To learn more about opening bank accounts with GlobalBanks IQ, just click here now. Or, contact us directly with any questions!