Gambling license Alderney

General information

Alderney is the third largest of the British Channel Islands and is part of the Bailiwick of Guernsey.

The British Channel Islands are self-governing British Crown dependencies; however they are not part of the UK or EU. Alderney is one of the few exceptions to the UK Gambling Act 2005 whitelist, allowing operators to advertise their services within the UK.

Alderney is almost eight miles from France and sixty miles from the south coast of Great Britain. The region has its own government, legislature and laws, and has the same insurance, investment and modern banking laws as Guernsey.

Alderney gambling license

The gambling regulator on the island of Alderney is the Alderney Gambling Control Commission (AGCC), which was established in May 2000 to oversee the island’s extensive online gambling activities. Although the island is a Crown property, the AGCC is completely independent of the UK Gambling Commission (UKGC). 

The type of business you operate will determine the type of license required.

AGCC offers licenses Category 1 and Category 2, and certificates of conformity and temporary license.

Both licenses and certificates provide the same rights and capabilities. They differ only in that certificates are issued to foreign companies, and licenses are issued to companies registered in Alderney.

• Category 1 license (B2C) and certificates of conformity give the owner the opportunity to organize the full range of gambling activities and other aspects of player management such as identity verification and player funds management. A license in this category is primarily intended for operator companies.
• Category 2 license (B2B) and certificates of conformity cover all aspects of gambling transactions, including the provision of games or the ability to place bets. The second category license is intended for companies developing software.

Only companies registered in Alderney can obtain one of these two licenses. However, the company applying is not required to be established before filing an application with the AGCC. An applicant may apply in advance if they undertake to set up a company registered in Alderney before obtaining a formal license.

The operator can receive a temporary license for online gambling in Alderney. A temporary Alderney gambling license allows a licensee who has already obtained a license in another jurisdiction to carry out gambling activities for a limited time. A temporary license allows the operator to operate gambling activities for up to 29 continuous days or a total of up to 59 days within six months.

After the expiration of this temporary period, the operator must apply for a Category 1 or 2 license. The AGCC will require the operator to submit the application within 42 days after the completion of this temporary period.

Basic requirements for obtaining a Gibraltar gambling license

Conditions that must be met to obtain a license:

• Online gambling businesses in Alderney are required to fully comply with local laws;
• Company registration in Alderney;
• Application submission;
• Posting a deposit of £10,000;
• Submitting a business plan to the regulator;
• Providing AML-CFT Policy;
• Providing detailed information about games;
• Providing information on withdrawing players’ funds from the platform;
• Confirmation of availability of RNG and RTP certificates;
• Sending other necessary documents.

Conditions for obtaining a temporary license:

• Submitting an application and the required package of documents.
• Post a deposit of £5,000.
• Providing a business plan.
• Providing all necessary information about the beneficiaries of the company.
• Providing data on all corporate structures involved in the process.

Licensing Process

The AGCC maintains strict licensing procedures to ensure that all its registered casinos provide a safe, fair and reliable service to the public. The licensing process can be divided into two phases:

• First phase:
  

Applying for a license is a multi-step process involving registering a company in Alderney, issuing a Notice of Application, and submitting application documents. The business plan will also be assessed. The investigation process also includes a thorough assessment of corporate entities, software providers and executives.

• Second phase:

Typically carried out in parallel and involves the assessment and approval of application documents. During this phase, outside experts may be involved in the process. The Alderney Gambling Commission has the power to exercise complete control over the operations of online gambling licensees. The main aspect of control is the protection of online players. In this context, the commission investigates complaints from players and verifies measures taken to prevent the involvement of minors in gambling.

Important. A down payment of £10,000 is required for the application and documents (for category 1, 2 and temporary licenses).

If all necessary documentation is provided at the time of application and no complications arise, the license can be issued within 4 weeks.

Taxation

One of the reasons why casinos find Alderney an ideal place to open their operations is that it has very favorable tax laws.

In Alderney, casinos do not pay corporation tax, gambling tax or VAT. The income tax rate is 20% with a maximum limit of:

• £220,000 per annum from income earned in Guernsey.
• £110,000 per annum on non-Guernsey income.

License fees

Other important information

• Companies wishing to obtain a certificate of compliance with a Category 1 (B2C) license must have a resident representative in the Bailiwick.
  
• Operators are not required to open accounts in the Bailiwick.
  
• For servers, with a Category 2 license or Associate Certificate you can locate your servers at an approved center outside the Bailiwick. If you are planning to obtain a license rather than a certificate, then some basic functions related to gambling transactions will need to be carried out on servers in the Bailiwick.
  
• It is necessary to provide documentary evidence of how initially the licensee company is capitalized. It must always be properly funded to satisfy the following conditions: funds must always exceed player balances; current assets should always exceed current liabilities; total assets should always exceed total liabilities by at least 25%.
  
• Markets: all unregulated by local regulators

Conclusion

Choosing Alderney as your licensing jurisdiction offers a number of benefits. Firstly, Alderney is renowned for its cutting-edge approach to the gambling industry, ensuring good governance and innovation.This is complemented by a strong regulatory framework characterized by strict standards and transparent controls, providing a safe and secure environment for operators and players.

Favorable tax legislation is also a definite attraction and advantage for online operators wishing to open their business in this jurisdiction.

Alderney’s simplified licensing process makes it easier to enter and operate in the market. Alderney’s reputation as one of the most lucrative gaming markets in Europe underlines its attractiveness as a desirable destination for international gaming operators seeking new opportunities.