Alderney Gambling License
The British Channel Islands have long been considered to be the world’s leading offshore finance centres. In recent years they have also won a reputation as e-commerce centres of excellence. The Channel Islands are dependencies of the British Crown that are self governed and are not part of the United Kingdom, nor members of the European Union.
Alderney, the third largest of the Channel Islands and one of the constitutive islands of the Bailiwick of Guernsey, is approximately 8 miles from France and 60 miles from mainland Britain. It has its own government, legislature and company laws and operates with the same modern banking, insurance and investment laws as Guernsey. The Guernsey Financial Services Commission is a statutory body responsible for ensuring that the finance industry on Guernsey and Alderney is well regulated. Alderney is subject to the provisions of Guernsey taxation laws.
Alderney licencees are by law permitted to take advantage of the modern hosting facilities and excellent telecommunication networks on both Alderney and Guernsey. For international network links, Alderney and Guernsey’s telecommunication network offers reliable and high capacity links to the UK, Europe, the USA and Asia.
Regulatory Framework
All gambling is unlawful in Alderney unless it is made legal by an ordinance enacted under enabling powers contained in the Alderney Gambling Law. The States of Alderney has legalised the e-gambling by virtue of a single measure: the Alderney eGambling Ordinance (2006), which encompasses traditional betting and gaming activities previously dealt with separately.
Alderney Gambling Control Commission
Alderney Online Gambling Licence is issued by the Alderney Gambling Control Commission (AGCC). Alderney is a self governing British dependency, located in the north of the Channel Islands. AGCC is an independent non-political regulating body empowered to perform regulating activity in regards of online gambling games under the Alderney Gambling Law.
Founded in 2000, the commission won a reputation of a leading online gambling jurisdiction today. The mission of AGCC is to maintain the integrity and ensure fairness of online gambling business in Alderney. The commission seeks all aspects of online gambling services to be delivered in accordance with high industry standards, basing on the principles if honesty. These aspects include such issues as funding, gains pay offs, software performed processes, etc. The commission claims to protect players’ interests from any kind of criminal influence.
It is also important to highlight that the Commission is a regular attendant and encourager of traditional dialogue between different regulatory bodies, carried out on an international level. AGCC is a member of the Gaming Regulators European forum (GREF), and the International Association of Gaming Regulators (IAGR). Moreover, in order to guarantee online gamblers security and fair play the Alderney Commission works in close cooperation with many influential law enforcement agencies in the aspects of gambling regulations and financial crime prevention.
AGCC is by rights considered the most progressive jurisdiction. It was the first commission to introduce a licensing reform and bring innovations to its legislation. The Alderney Gambling licence is a multiple gaming type certification method. It covers casino, poker, sportsbook, and lottery aspects.
As of April of 2010, the Alderney Gambling Control Commission had issued 42 eGambling licences and 2 Restricted Use licences.
Alderney Gaming Control Commission Licensing
Being licensed by AGCC has several important economic advantages. First of all, companies established for the purposes of holding an Alderney eGambling Licence may qualify for tax-exempt status in which case they do not pay income tax but pay a minimal non profit related fixed annual fee instead. Secondly, there is no VAT or other Sales tax applicable on Alderney. What is more, there is no tax or other duties payable on gambling operations.
AGCC issues four main types of gambling licences:
- Full eGambling license
- Associate certificate
- Hosting certificate
- Restricted use eGambling license
The holder of the Alderney full eGambling licence has all the rights to run online gambling business and proceed gambling transactions including all kinds and forms of gaming, betting and lottery participation.
The licence issuing process is carried out in two phases. The first phase is licence application. It is a multi-step process, involving registering a company in Alderney, issuing the application Notice and application documents submitting. In addition, an applicant’s business plan will be evaluated. The investigation process also includes careful estimation of corporate entities, software providers and management executives. The second phase, usually conducted simultaneously, includes evaluation and approval of the provided documents. On this phase third party experts can be involved in the process.
The current full eGambling licence annual fee is £70,000 GBP. The costs of initial investigations should also be covered by the applicant’s side.
AGCC is empowered to establish full control over the licencee’s online gambling business operations. The main control issue is online players’ protection. In this respect the commission will investigate gamblers’ complaints and check the precautions taken in order to prevent underage gambling.