Alderney Gambling License

Advantages of the Alderney Gambling License

First and foremost, you should note that Alderney is technologically advanced and has a robust regulatory framework that allows gambling businesses to grow in a secure and supportive environment while saving costs on licensing and efficiently running business operations. Alderney’s gaming and AML regulators are globally recognized as having very high standards which makes Alderney a reputable jurisdiction. Therefore, having a license from Alderney signals trust to clients and investors.

Moreover, if you obtain an Alderney eGambling license or certificate, you’ll be able to invest in your business growth increasingly more due to its competitive taxation system. The island has no gaming, VAT, corporation, or capital gains taxes applicable to Alderney companies. Also, Alderney’s license application and annual fees are very favorable, fair, and transparent.

Gambling Regulations in Alderney

The Alderney Gambling Control Commission (AGCC) is responsible for the supervision of gambling businesses, including licensing and the enforcement of regulations. The authority has over 23 years of experience in gambling regulations and therefore is demonstrably excellent in promoting the growth of the industry while at the same time protecting all industry participants.

The AGCC supervises gambling businesses on the basis of, but not limited to, the following legislation:

• The Gambling (Alderney) Law of 1999
• The Alderney eGambling Ordinance of 2009
• The Alderney eGambling Regulations of 2009
• The Alderney eGambling (Operations in Guernsey) Ordinance of 2006

Due to the exponential growth of the eGaming industry, the Alderney eGambling Regulations of 2009 is among the most relevant pieces of legislation, stipulating rules for a variety of eGambling licenses and certificates, including the application process and criteria, license modification, as well as consequences of non-compliance and suspension.

Another critical piece of gambling regulations is the Alderney eGambling Ordinance of 2009 which stipulates rules for licensing and certification, operational requirements, for licensees and certificate holders, as well as general provisions related to appeals, offenses, and rights to refuse transactions. The Alderney eGambling Ordinance of 2009 also lays out the AML/CFT rules for liable gambling businesses, including the set up of internal procedures, documentation of transactions, and assessment of every proposed business relationship.

GAMBLING LICENSE IN ALDERNEY

Types of Alderney Gambling Licenses

In Alderney, several types of gaming licenses and certificates are offered in order to allow businesses with various models to offer safe, fair, and high-standard gaming products and services. Below is the review of eGambling-related types of authorization but if you’re interested in other types of gaming licenses, reach out to our friendly team here at Regulated United Europe and we’ll be happy to provide personalized advice.

A Category 1 eGambling License authorizes license holders to organize and conduct gambling operations in order to prepare customers to gamble. The license permits the following activities:

• Entering into an agreement with customers
• Registering and verifying customers
• Engaging in financial transactions with customers and managing customers’ funds
• Offering or promoting gambling to customers
• Other actions that the AGCC determines to be activities that can only be carried out by a Category 1 eGambling License holder

A Category 1 eGambling Licensee can’t conduct gambling transactions unless it also holds a Category 2 eGambling License which means that it’s possible to apply for two categories of the license if an applicant’s business model requires it.

A Category 2 eGambling License permits holders to perform gambling transactions which include the following activities:

• Striking a bet
• Housing and recording random elements or gambling transaction outcomes
• Operating an approved system of hardware and software through which gambling transactions are conducted
• Operating more than one form of gambling and multiple gambling platforms
• Operating gambling on behalf of a Category 1 licensee or on behalf of gambling operators based elsewhere in the world

Importantly, a Category 2 eGambling License doesn’t permit engaging in financial transactions with customers. Also, it doesn’t allow contracting directly with customers unless the licensee also holds a Category 1 eGambling license.

A Temporary eGambling License is offered to foreign gambling businesses and has the following features:

• Permits a foreign licensee to act both as a Category 1 eGambling licensee and as a Category 2 eGambling licensee for a limited period of time and only for specific purposes
• The licensee generally has all the rights and obligations of a Category 1 eGambling licensee or a Category 2 eGambling licensee
• It permits transactions involving any form of betting, gaming, and wagering, and participation in any lottery

Advantages

• Entering into an agreement with customers
• Registering and verifying customers
• Engaging in financial transactions with customers and managing customers’ funds
• Offering or promoting gambling to customers
• Other actions that the AGCC determines to be activities that can only be carried out by a Category 1 eGambling License holder

A Category 1 eGambling Licensee can’t conduct gambling transactions unless it also holds a Category 2 eGambling License which means that it’s possible to apply for two categories of the license if an applicant’s business model requires it.

A Category 2 eGambling License permits holders to perform gambling transactions which include the following activities:

• Striking a bet
• Housing and recording random elements or gambling transaction outcomes
• Operating an approved system of hardware and software through which gambling transactions are conducted
• Operating more than one form of gambling and multiple gambling platforms
• Operating gambling on behalf of a Category 1 licensee or on behalf of gambling operators based elsewhere in the world

Importantly, a Category 2 eGambling License doesn’t permit engaging in financial transactions with customers. Also, it doesn’t allow contracting directly with customers unless the licensee also holds a Category 1 eGambling license.

A Temporary eGambling License is offered to foreign gambling businesses and has the following features:

• Permits a foreign licensee to act both as a Category 1 eGambling licensee and as a Category 2 eGambling licensee for a limited period of time and only for specific purposes
• The licensee generally has all the rights and obligations of a Category 1 eGambling licensee or a Category 2 eGambling licensee
• It permits transactions involving any form of betting, gaming, and wagering, and participation in any lottery

Types of Alderney Gambling Certificates

A Core Service Provider Associate Certificate is issued to gambling core service providers and boasts the following features:

• Certificate holders are authorized to provide gambling-specific software, including games, to eGambling licensees, Category 1 Associate Certificate holders, and Category 2 Associate Certificate holders, except for the sale of that software and associated rights
• With the holders of this certificate, customers deposit the funds to pay for gambling transactions conducted with Category 1 Associate Certificate holders
• An eGambling licensee, Category 1 Associate Certificate holder, or a Category 2 Associate Certificate holder can outsource its management to Core Service Provider Associate Certificate holders as described in its approved internal control system

A Category 1 Associate Certificate has the following characteristics:

• It permits a holder to contract with customers to organize and prepare them to gamble
• The organizational and preparational activities include the registration and verification of customers, engaging in financial transactions with customers, and managing their funds
• The certificate is subject to the same general conditions as the Category 1 eGambling License

A Category 2 Associate Certificate has the following characteristics:

• It’s issued to a company (other than a Category 2 eGambling licensee) to whom a Category 1 eGambling licensee transfers customers, or facilitates their transfer in order to allow the Category 2 associate to perform gambling transactions with them or arrange for those customers to gamble with others
• Permitted gambling transactions include striking a bet, recording and housing gambling transaction outcomes, and operating hardware and software systems through which those transactions are conducted

A Hosting Certificate has the following notable characteristics:

• It can be obtained by a provider of physical AGCC-approved premises in Guernsey where the gambling equipment of licensees and associate certificate holders is stored
• No annual fees apply to certificate holders

The most notable aspects of a Key Individual Certificate are as follows:

• An eGambling licensee, Category 1 Associate Certificate Holder, or a Category 2 Associate Certificate holder can use its granted license or certificate only if every key person of the licensee or certificate holder holds a Key Individual Certificate
• A key individual is a person who occupies or acts in a managerial position, exercises significant influence over the operations of the licensee or a certificate holder, or who has been identified either by a licensee or the AGCC as occupying a key position and performing the functions of a key Individual
• A person who is a key individual with no Key Individual Certificate can be liable to a fine of up to 25,000 GBP

Alderney

Capital	Population	Currency	GDP
Alderney	2,141	GBP	£50,941

Requirements for License Applicants

The requirements for Category 1 and Category 2 eGambling License applicants are as follows:

• Such a license can only be granted to an Alderney company
• The licensee must appoint an executive officer to fulfill the duties of a compliance officer, who has to report to the AGCC with regard to all compliance matters
• The licensee must appoint an AML officer who may also be a compliance officer
• The licensee must maintain and operate its gambling equipment in premises approved by the AGCC and keep those premises suitable and secure at all times
• The initial payable investigation deposit is 10,000 GBP
• The initial payable licensing fee for the first year is 17,500 GBP (it increases on the basis of varying conditions)
• The licensee must before it commences to operate under its license, notify the AGCC of the day that such operations are to commence

Temporary eGambling License applicants are obligated to meet the following requirements:

• The license can’t be held by an Alderney company – it must be a foreign business
• The licensee must continuously hold a license or permission from some other jurisdiction allowing it to conduct an equivalent form of eGambling to that which it proposes to offer under the Temporary eGambling license
• It must notify the AGCC of the license activation no later than one hour after commencing its operations
• It must notify the AGCC of the termination of its license use no later than one hour after terminating its operations
• The licensee must use the license no greater than 29 days continuously, or for an aggregate of 59 total days of use within any 6 months
• Upon the 30th day of continuous use, or upon the 60th day of aggregated use within any six-month period, the licensee will have to apply for a full eGambling license within 42 days
• The annual license fee is 10,000 GBP

Requirements for Certificate Applicants

Requirements for Core Service Provider Associate Certificate applicants:

• The senior management must be fit and proper to offer gambling software or hardware
• The applicant must be willing to provide services instead of selling rights to those services
• The initial deposit payable to the AGCC is 5,000 GBP
• An annual fee of 10,000 GBP is required

The following requirements apply to Category 1 Associate Certificate applicants:

• The certificate can only be issued to an Alderney company that is a Category 1 eGambling licensee or a Category 2 eGambling licensee
• The certificate may not be issued to a natural person
• The applicant must have either a resident representative or a key individual resident in the Bailiwick of Guernsey
• The applicant’s executive director may only approve a resident representative if the resident representative is resident in or located, registered or incorporated in the Bailiwick, and the executive director is satisfied that the resident representative is a fit and proper person
• The initial annual fee for the first year is 35,000 GBP

The following requirements apply to Category 2 Associate Certificate applicants:

• Such a certificate can only be issued to an Alderney company that is a Category 1 eGambling licensee or a Category 2 eGambling licensee
• The certificate can’t be issued to a natural person
• The associate must appoint an executive officer to fulfill the duties of a compliance officer, who has to report to the AGCC with regard to all compliance matters
• The associate must appoint an AML officer who may also be a compliance officer
• The initial annual fee for the first year is 35,000 GBP

The following requirements apply to Key Individual Certificate applicants:

• A key individual must apply for a Key Individual Certificate within 21 days of first becoming a key individual (such a person is considered to have a Key Individual Certificate until the application is reviewed and the decision is made by the authority)
• The applicant must be fit and proper to hold the certificate which includes taking into consideration the applicant’s character and current financial position

Top Alderney Online Casinos

The Application Processes

The application process slightly varies depending on the type of license or certificate an applicant aims to obtain. If all mandatory documentation is provided at the time of the submission of the application, no obstacles occur, and the applicant is considered suitable to hold an Alderney gambling license or certificate, the application process can be completed within a month. You should note that compared to other jurisdictions, this turnaround time is very short and efficient. Another significant advantage is that Alderney’s licenses and certificates are valid for an indefinite period.

For a Category 1 and Category 2 eGaming license, the main application steps are as follows:

• An Alderney-registered company submits an application along with the relevant documentation and proof of settled fees to the AGCC
• Once the application is received, the AGCC’s regulatory operations director arranges a meeting with the applicant to better understand the proposed eGaming business plan and operations, executives and suppliers involved in the business, including those who may require a Key Individual Certificate
• The AGCC assesses the application against the relevant criteria provided for in the Alderney eGambling Regulations of 2009 and makes a decision
• If the application is successful, a license is issued as soon as the relevant license fee is settled by the applicant

For a Temporary eGambling Licence, the application steps are as follows:

• The applicant submits a completed and signed application form along with an initial investigation deposit of 5,000 GBP
• The AGCC’s regulatory operations director arranges a meeting with the applicant to better understand the proposed eGaming business plan and the potential use of the temporary license and executive associates with third-party software providers
• The AGCC assesses the application against the relevant criteria
• If the application is successful, the Temporary eGambling License once the required license fee is paid

You should also bear in mind that before commencing the newly licensed operations, the licensee must first get approval for its internal control system (ICS), gambling equipment, and capitalization status from the AGCC, which issues a letter of approval to the licensee to commence commercial operations once these 3 requirements are met.

The approval for the ICS includes the following steps:

• The licensee creates an ICS document by filling in the AGCC-provided ICS template in line with the Technical Standards and Guidelines for Internal Control Systems and Internet Gambling Systems
• The licensee fills in the application form entitled “Approval of an Internal Control System” and sends it to the AGCC along with the 10,000 GBP deposit
• The licensee submits the ICS document to the AGCC via email as an MS Word attachment
• The AGCC reviews the ICS document and advises whether it requires revisions or amendments
• The approval of the proposed ICS is only granted when there’s enough evidence that the system facilitates satisfactory, effective, and comprehensive operational control

The approval for the gambling equipment includes the following steps:

• The licensee fills in the application form entitled “Approval of Gambling Equipment” and sends it to the AGCC with the 5,000 GBP deposit
• The AGCC reviews the scope of any required testing and discusses with the licensee how it can be completed
• The AGCC may also need to approve any providers of core services (e.g. games or gaming software) by granting a Core Service Provider Associate Certificate

The approval for the capitalization status includes the following steps:

• The licensee must provide all documents demonstrating how the Alderney licensee company has been initially capitalized
• The licensee must ensure its adequate financing at all times by ensuring that its cash always exceeds player balances, its current assets always exceed current liabilities, and its total assets always exceed total liabilities by at least 25%

For a Core Service Provider Associate Certificate, a Category 1 or Category 2 Associate Certificate, and the Hosting Certificate, the main application steps are as follows:

• The applicant fills in and submits an application form along with the required documents and investigation deposit of 5,000 GBP to the AGCC
• The AGCC assesses the application against the relevant criteria
• If the application is successful, a certificate is issued once the payment of the license fee is received

However, being a successful applicant for one of the certificates doesn’t permit the commencement of the intended operations. A holder of a Core Service Provider Associate Certificate should first get approval for the equipment which is used to run or support the offered games. While the previous testing might be taken into consideration, all gambling equipment still needs to be independently tested. Following the grant of a Category 1 or Category 2 Associate Certificate, the holder will have to get approval for the ICS and gaming equipment. The steps for all these approvals are the same as those for getting respective approvals for the aforementioned Category 1 and Category 2 eGaming licenses. Moreover, the AGCC may also consult third parties competent in the area of gambling systems in order to make an informed decision.

For a Key Individual Certificate, the application steps are as follows:

• The applicant submits an application form along with a written confirmation from an eGambling licensee or license applicant that the applicant for the Key Individual Certificate is – or will be – a key individual, 2 copies of a recent photograph of the applicant, and an investigation deposit of 1,000 GBP
• The AGCC assesses the application against the relevant criteria which may involve inquiring the police, foreign gambling regulators, and law enforcement agencies
• Provided that the application is successful, the applicant is granted a Key Individual Certificate

Our team here at Regulated United Europe will be delighted to support you in obtaining a gambling license or certificate, including company incorporation, in Alderney. With dedicated legal advisors, tax experts, and financial accountants at your side, you will find the incorporation and application processes easy, frictionless, and transparent. Contact us now to schedule a personalized consultation and set the stage for long-lasting success.