Where is Alderney?
Alderney is the third largest of the British Channel Islands and forms part of the Bailiwick of Guernsey.
The Alderney Gambling Control Commission (AGCC) regulates online gaming and gambling. AGCC licensees are in a position to benefit from all the services that Alderney and its larger sister Island, Guernsey, provides. From a skilled work force and expert advisors, resilient fibre connectivity offering global links from the Island and world class data centres, to its world-renowned international business community with OECD white-list approval and an enviable island lifestyle.
Do I need a gambling Licence?
An eGambling licence from the AGCC can be used by a licensee to operate in any country where it is legal to do so. In some countries, including the UK for example, a licensee will also be required to obtain a local licence issued by that country if accessing that market.
What’s the advantage of choosing an Alderney eGambling Licence?
Choosing Alderney as your licensing jurisdiction offers a host of advantages. From top-tier regulation recognised globally, to a risk-based approach to regulation and Relationship Manager-led account handling to its transparent and competitive tax regime and fee structure. For more information on the benefits of the Alderney licence, please see the Why Alderney section of our site.
Which Licence do I need?
The activity of your business will determine the kind of licence required. Any number and type
of gambling activity can be approved on a single AGCC licence. Fundamentally, the AGCC separates the two distinct functions of eGaming.
The Category 1 (B2C) Licence (for Alderney companies) or Associate Certificate (for foreign- based companies) covers all aspects of player management. Once player registration has been completed, the player can be offered activities from either a Category 2 licensed platform in Alderney or any other platform licensed by a competent authority. Operators are free to build up their own portfolio of games and activities.
The Category 2 (B2B) Licence (for gaming platforms located in Alderney) or Associate Certificate (for gaming platforms located outside of Alderney) covers all aspects of effecting the gambling transaction, providing the games and betting activities.
How complicated is the licensing process with Alderney?
The licensing process with the AGCC is very straightforward and the teams at both Alderney eGambling and the AGCC are on hand to guide you step by step through the entire process.
How long does it take to get a gambling Licence?
An eGambling licence from the AGCC can be approved very quickly. The time it takes for the licence to be issued is dependent upon the applicant having all relevant documentation and responding quickly to due diligence information requests during the investigation process.
If all documentation required is provided at the time of application and no complications arise, a licence can be issued in as little as four weeks if the applicant is deemed suitable to hold an AGCC licence. Other jurisdictions may take a year or more to approve.
Do I need to be an Alderney Company?
There are many advantages to having an Alderney registered company. From the excellent technical and hosting infrastructure and professional corporate service providers on Island to the multiple fiscal benefits. However, the AGCC also has an alternative model whereby foreign companies can also be regulated – both B2C and B2B organisations can apply for a Category 1 or Category 2 Associate Certificate.
How much does a Licence cost?
The Alderney eGambling licence cost structure is very simple and transparent. There are no additional duties charged by Alderney. For more information on fees, please see the Licences and Fees section of our website. A summary of the fees can be found in the table below:
|License type||License fee|
|Category 1 Licence||£17,500 for year one and from £35,000pa from year two onwards dependent on the Net Gaming Yield (NGY) Bands A-G|
|Category 1 Associate Certificate||£35,000 for year one and £50,000pa from year two onwards plus Net Gaming Yield (NGY) Bands A-G as per Cat 1 Licence|
|Category 2 Licence||£17,500 for year one and £35,000pa for each year thereafter|
|Category 2 Associate Certificate||£35,000 for year one and £50,000pa for each year thereafter|
What are the applicable eGambling tax rates?
There are no gaming duties or VAT, zero rated tax on company profits and no capital gains taxes applied for Alderney companies. Alderney’s licence fees are very competitive and a business only pays for what it uses – there are no hidden charges. See our comparison chart for fees for other jurisdictions.
What are the gambling Licence requirements?
In order to apply for an Alderney eGambling licence, the requirements are as follows:
1. Completed application form
A deposit of £10,000 (for Category 1 & 2 Licences or Associate Certificates) or £5,000 (for a Core Services Associate Certificate) is taken and used to investigate the application, on a time spent basis, at reasonable charge out rates. Any balance remaining after the investigation is completed is held on the applicant’s account.
For Category 1 & 2 Licences, applications are made in the name of an Alderney registered company
(if it is in the process being incorporated, the application process can start and run in parallel.) There are a number of corporate services providers who can assist with Alderney company formation and we are happy to refer you to an experienced supplier in this respect.
How do I get an eGambling Licence?
The process to get an eGambling licence is straightforward and requires the following information:
|Stage 1 - Application form is submitted and the deposit paid|
|AGCC will commence investigation: Applicant suitability testing is undertaken (character, business reputation, financial position, ownership and corporate structure, character and reputation of business associates and sources of funding.)|
|Licence is granted by AGCC (but no operations may commence until Stage 2 is completed.)|
|Stage 2 - Testing of gaming equipment|
|Approval of ICS (Internal Controls Systems)|
|Operations may commence|
What gambling activities are covered by an AGCC Licence?
The AGCC framework has been developed to encompass all types of gambling activity under one licence. The regime is flexible enough to respond to new trends and technologies; supporting and encouraging innovation in our fast-paced industry.
Do our shareholders, Directors or staff have to be based in the Bailiwick to be licensed by Alderney?
Having a physical presence in the Bailiwick is not a requirement for regulatory purposes for either licence or certificate holders. However, a resident agent and registered office is a requirement for Alderney companies and a resident representative is a requirement for the Category 1 Associate Certificate.
The indirect tax benefit of no VAT charged is afforded to those who choose to base themselves in the Bailiwick and it is down to the operator to consider whether this physical presence would benefit their business model. There is now formal clarification on what constitutes sufficient Economic Substance for Bailiwick businesses from an ECOFIN and OECD perspective.
How does the recent clarification on Economic Substance affect Alderney licensees?
There are now clear and definitive guidelines on what is internationally recognised and accepted as sufficient Economic Substance. The position is approved and accepted by ECOFIN/OECD and not overly onerous to satisfy in practice.
While the legislation concerning Economic Substance needs to be applied on a case by case basis and bespoke advice should always be taken, it affords real opportunities for companies to plan their affairs and brings them much needed certainty in a fast-changing world. Best practice for years has always advised a level of presence for all businesses and the practical application is readily achievable.
Do my servers have to be based in Alderney?
No, it is possible to be licensed by Alderney and have your servers based in an approved data centre outside of the Bailiwick using cloud solutions for B2C and B2B licences and Associate Certificates. If you apply for a Category 2 Licence (B2B) and not a Category 2 Associate Certificate (B2B) then certain essential functions relating to effecting the gambling transaction need to be conducted on servers in the Bailiwick.
What gaming banks are available in the Bailiwick?
There is no regulatory requirement to bank in the Bailiwick, licensees can bank in any reputable jurisdiction globally which affords AGCC licensees with many banking options. Banking is complicated for the sector in general but having an AGCC licence can assist licensees with banking and payment processing as the licence is so well regarded globally. It is apparent that the licensee is adhering to recognised best practice and gold-standards.
Once issued, what is the process for Licence renewal?
The licence renewal is annual, at which time the appropriate annual licence fee will be payable.
What does Brexit mean for Alderney?
As Alderney is independent from the EEA and EU, there was and is no direct impact on Alderney’s eGambling regime from Brexit and Alderney licensees remain unaffected. In fact, Alderney can offer a position of certainty to operators and suppliers and its licensees continue to thrive, profiting from the global partnerships that Alderney's vast international connections provide.
Furthermore, considering the restrictions placed on EU/EEA licensed businesses looking to operate in non-EU/EEA markets, the Alderney licence provides an attractive solution, supporting its licensees to expand into these markets where the opportunity is vast.
How can I find out more about technical information?
Please view the full Technical Standards and Guidelines for Internal Control Systems and Internet Gambling Systems produced by the AGCC.. There are also many leading hosting, technical, telecoms and corporate services companies who work with a suite of high tech systems for anyone who wants to host on island. There’s also the option of using AGCC approved cloud hosting facilities.
We are able to direct you to the best placed provider to answer all of your more specific, technical, company formation and legal enquiries.