—TechRound does not recommend or endorse any financial, investment, gambling, trading or other advice, practices, companies or operators. All articles are purely informational—
A strong product and clear market demand do not guarantee entry into regulated industries. Startups may face licencing rules, capital thresholds and legal restrictions before they can begin trading. For founders, the first challenge is understanding which barriers apply and whether a licence is available at all.
Why Are Some Regulated Industries Difficult For Startups To Enter?
Regulated markets impose different conditions on businesses. Some require prior authorisation, while others demand minimum capital reserves or insurance cover. In Belgium, the online casino market includes licenced operators such as madisoncasino.be, where online permissions are tied to existing land-based casino licences.
Regulators may also conduct fit-and-proper tests to assess directors’ integrity, experience and suitability. These requirements create financial and administrative barriers to entry. Common obstacles include:
- Application fees, capital thresholds and mandatory insurance
- Background checks on directors, owners and shareholders
- Ongoing reporting, audits and risk management obligations
- Licence caps that restrict the number of authorised operators
The last category presents a different challenge. When licences are available to qualifying applicants, startups can prepare an application. When the number is capped by law, meeting every requirement may still leave no route to a new licence.
How Do Licencing Rules Restrict Competition in Regulated Markets?
Licencing requirements determine whether a business can enter a market through an application or needs another route. In sectors with open authorisation regimes, eligible startups can seek approval if they meet the relevant conditions.
A capped licencing system changes the commercial calculation. Founders must identify existing licence holders, assess acquisition opportunities and account for regulatory approval. Product development alone cannot overcome a legal limit on the number of operators.
For startups and scale-ups, this distinction should be established before substantial investment. It determines whether the business plan centres on building a product or acquiring an authorised company.
Why Is Belgium’s Online Casino Market Difficult To Enter?
Belgium offers a clear example of a capped gambling market. Its licencing framework fixes the number of licences in law, while online casino permissions require an existing land-based casino licence. Almost all available licences were already held as of October 2025. For a new entrant, buying an incumbent may therefore be the only practical route into this restricted market.
Running costs add another consideration. Operators fund the Gaming Commission through mandatory contributions. After remaining unchanged since 2018, these contributions rose by 15% for 2026. This increases the cost of operating within the licenced market.
What Are the Main Barriers to Entry in Regulated Industries?
Common barriers include licencing requirements, capital thresholds, insurance obligations, background checks and ongoing compliance costs. Some sectors also cap the number of available licences.
What Is a Fit-And-Proper Test?
A fit-and-proper test assesses whether company directors or owners meet regulatory standards for integrity, competence and suitability. The exact criteria vary by industry and jurisdiction.
Can a Startup Enter a Market Where Licences Are Capped?
Potentially, through acquiring an existing licence holder, subject to the applicable rules and regulatory approval. A new application may not be possible when all licences are allocated.
Why Is Belgium’s Online Casino Market Difficult To Enter?
Belgian law links online casino licences to existing land-based casino licences. With licence numbers fixed by law, startups cannot assume that a new licence will be available.
For founders, the essential first step is to establish whether a licence can be earned or must be acquired. That answer determines whether market entry requires a product strategy or an acquisition strategy.
—TechRound does not recommend or endorse any financial, investment, gambling, trading or other advice, practices, companies or operators. All articles are purely informational—
