Key moment in the operation of gambling business is obtaining a license for the right to provide gambling services. Licensing Gaming experts shared with us the twists and turns of execution, as well as the strengths and weaknesses of the popular Vanuatu and Curacao licenses.
- Vanuatu License for the right to provide gambling services (Vanuatu Gaming license)
- Curacao Gambling License
The starting point for creating a successful business is to obtain the right to provide services – a license. Since the legislative conduct of gambling business rules differ significantly depending of the jurisdiction in which the company plans to work, we have prepared information about popular licensing variants, such as Vanuatu and Curacao.
The analysis findings are compiled on the basis of open sources of information, commentaries of Licensing Gaming experts in Malta and Curacao licensing, as well as reviews of engaged companies.
The selected criteria for a comparative analysis are: the turnaround time of documents, the cost of the license, the universality (the type of gambling services allowed by the license), the conditions for obtaining a license, as well as indicators of demand for the market and stability of the political and economic situation in the selected jurisdictions.
Vanuatu License for the provision of gambling services (Vanuatu Gambling license)
Vanuatu can be called one of the pioneers in provision of licenses to online gambling operators. The jurisdiction takes a responsible approach to the process of licensing operators, because it values the reputation of one of the gambling licensing centers.
“The applicants – gambling companies – can be repelled by the circuity of the processes, the severity of the rules and the thoroughness of the checks on determination the financial sufficiency, which are held in jurisdiction. However, eventually, the complexity of the system can be explained by the endevour of the state to secure the market”, – Licensing Gaming experts explain.
Vanuatu: Licensing Types
Permission for private and public business are two types of gambling licenses in the jurisdiction. At the same time, the license covers all possible types of gambling services such as casinos, lotteries, bookmaking, poker, bingo or horse racing bets. At that, the license provides the possibility for the possible rendering of modern services related to skill games or bitcoin casinos.
Legislative authority of work
The country has several laws regulating gambling activities. First, the Lottery Act, adopted in 1989. Secondly, the Law on land-based gambling management of 1993 and, thirdly, the Law regulating online gambling operations of 2000.
The Vanuatu gambling license is granted according to the Gambling Control Law 172.
The process of obtaining a Vanuatu gambling license
The first step of obtaining permission to provide gambling services is creation of a detailed design offer and submitting of an application to the Minister of Finance of Vanuatu. Consideration of the application is the work of two ministries – the Ministry of Finance and the Ministry of Internal Affairs. The recommendations received from the authorized bodies together with the application are sent to the Council of Ministers for consideration.
After approval from the Council of Ministers the license is issued by the Minister of Finance.
The operator’s application may be rejected. In such a case, the local gambling regulator notifies the applicant about the decision and provides a checklist of the improvements required for obtaining a permit.
“In addition to the circuity of the license obtaining process, one of the most inconvenient things for an operator may be the requirement to have the gambling equipment necessary for the gambling operations inside the country. An additional point is that the authorities of Vanuatu offer a list of companies developing solutions for online gambling”, – the representatives of Licensing Gaming say.
Validity of license
The Vanuatu license is issued for one year. If required, the operator may extend the permission on the first day of the next year. For business companies, the cost for the permission renewal is 40 000 euro, and for the charitable companies it is 13 000 euro.
“In addition to this cost, the gambling operator of business companies undertakes to pay a monthly fee of 30% of gross profit. The penalty for non-payment is 10% of the amount of the monthly fee”, – the representatives of Licensing Gaming say.
Curacao Gambling License
The main part of the Curacao island is the territory of the Netherlands and historically the region has developed as a meeting point of trade routes. The uniqueness of this jurisdiction is emphasized by the fact that Curacao has the status of an EU country, but does not imply high tax rates, which are typical of the countries of the European Union. This had influence on the development of the region as an investment, financial and development center for the remote industries.
Curacao: Licensing Types
The Curacao license is a solution for all types of gambling services, from land based and remote gambling venues and sports betting, to poker and lottery.
Legislative authority of work
The online segment is regulated by Curacao E-Gaming, and the control functions in relation to land-based gambling venues are carried out by the Gambling Control Council.
Curacao has been providing licenses to operators from all over the world since 1996. Thus, they get the right to work there, and such a license is legal.
The process of obtaining a Curacao gambling license
The process of obtaining permission for gambling business activities starts from the prior approval, which can be ordered through a company service provider. The preliminary stage can be considered to be completed after the package of necessary documents is gathered and the fee in the amount of 1,500 euro is paid.
Then the operator must apply for a license and attach the proof of payment of the fee to the main package of documents, after which the gambling regulator conducts an independent assessment. Upon completion of the applicant affirmation all one-time fees shall be paid.
The next stage is the so-called evaluation of the application. It is to verify that the application meets the IP requirements of the gambling regulator. In case of finding the inconsistency, a checklist indicating non-conforming items will be sent to the applicant.
The license is issued only in case of full compliance with all requirements of the jurisdiction.
After the operator is given permission, he must begin to conduct operations and implement the plan provided earlier within 60 days.
With proper preparation and legalization of documentation, the license can be issued within 2-4 weeks. Therefore, in order to avoid wasting time, many operators turn to licensing professionals, such as Licensing Gaming.
“One of the most important factors determining the popularity of a Curacao license is the tight deadlines for obtaining the business activity permit. The main advantage of the jurisdiction for operators is a low tax rate of net profit in the amount of 2%. In comparison with other countries, Curacao provides licenses at non-prohibitive tariff. So, the cost of the permission is 34 000 USD, and the monthly payments during the first two years of operation are 5600 USD”, – the specialists of Licensing Gaming emphasize.
In addition, an important feature of Curacao licensing is the possibility of provision of sublicensing if there is a primary one.
According to experts, the Vanuatu gambling license significantly loses out to the Curacao license. First, in the speed of completion of documents. Secondly, the tax system of Curacao is much more loyal to gambling business. Thirdly, the Vanuatu requirement regarding the gambling equipment ties the company to a specific territory, which is illogical and inconvenient, taking into account the specifics of a remote business and processes of globalization.