In current years gaming industry has been attracting more and more investors from every corner of the world. The industry has grown massively and developed in modern ways. As one of the trends, there are more women who try their luck in online casinos and computer games. The youth segment of online players has definitely augmented, too. In general, computer games involvement is rising on all platforms. For a recent example we can take mobile games being extremely popular.
These trends inspired us to collect information about buying a gaming company and starting a gambling business. Before starting on these plans, few legal aspects should be taken into account, because ignoring them can have its unpleasant results.
Legal audit for a gambling company in the EU
It is generally obvious that it can save both money and time if one prevents problems in advance instead of solving them after they happen. That is why it is truly important to identify company’s advantages and wick points before acquiring it. This examination show company’s true value and therefore should be indeed thorough. During the analysis there are some necessary characteristics not to miss: taxes, operations, finance and legal expertise.
In COREDO we are prepared to assist you if you are about to purchase an existing gambling company in the EU.
Corporate support for gambling in the EU
It is not surprising nowadays that small startups can become full-grown gaming studios in a very short time. Typically, founders or venture fonds fund the studios with the help of debt instruments, the form of stocks or by mixing both tools. In order for the buyer of the gambling company to receive all or the estimated portion of shares, investing in a gambling company and acquiring shares in one implies the need of separation of complex shareholder structures.
If you have already decided to register a gambling company, our lawyers in COREDO are here to provide you with their experience and advise you on how to start a gambling business effectively.
Issues with creativity
Games and their creators are, for sure, the heart of every gaming studio. We can consider nearly everything produced in the game creating process to be intellectual property. The examples could be technology, source code, art design, music, lyrics, and many other integral parts of the game. Thus, it becomes crucial for the buyer of the gaming studio that the intellectual property creations and rights are in the game studio’s ownership. The same principle relates to the publisher’s licenses for this intellectual property in distributed games.
The problematic question then comes up in the gambling industry – who is the owner of the intellectual property rights? A company or an employee? This problem in the gambling business can only be solved by a competent legal analysis of the IP agreements.
COREDO’s experts can help you process the legal analysis of the intellectual property protection in the agreements for your gambling business. Such analysis is extremely important to keep the right to key software.
Rights to use IT technologies
Before starting a gambling business in the EU, it is crucial to realize that the significance level of rights to use the IT technologies is just as high as the importance of technologies. Before acquiring a gambling company, an analysis of the license agreements in the gambling business should be carried out. The analysis is supposed to identify the rights of the parties to end the license agreement without notice when there is a new main shareholder in the company and the licensor is not informed on that subject.
GDPR application on gambling companies
Before GDPR was introduced, data protection mechanisms used to be less strict. Now regulators significantly enhanced penalties for non-conforming entities.
To make sure that gambling company is working in accordance with GDPR, order a legal audit in COREDO.
Legal issues because of neglect
The industry of gaming is all about creating art content. Many legal issues in the field are often neglected, which can result as legal problems. For example, numerous creators in gaming industry do not sign a labor contract with the employer and this situation is quite normal for the field of large corporates. However, the approach of key employees not having a labor contract may bring true problems while running a gambling business in the EU.
Many employment contracts in gambling industry do not contain non-competitive terms or confidentiality provisions. It means that the creators can freely work in a few competing studios at the same time. Therefore, it can become risky to invest in a gambling business in the EU, since the competitors might have the same knowledge already as know-how of the same creators. This know-how and its uniqueness are mostly the main assets of the deal.
Seek assistance in COREDO
Before making a final decision on whether to acquire a gambling business in the EU, it is extremely significant to arrange a qualified legal support for such operation. Not visible on the first sight, the gambling company might have certain disadvantages that only a professional legal audit can make transparent. Do not miss out on contacting COREDO and our specialists will inform you on every aspect of this issue.