What is an iGaming license?
An iGaming license is a document that allows an operator to legally run an online gambling business or betting website. A license is a guarantee of the honesty of the platform owners and the absence of criminal influence. For clients, this means the security of personal data and the safety of deposits made. Thus, licensed online casinos will attract much more players than unlicensed ones. Moreover, official game developers, banks and other legal entities do not want to collaborate with unlicensed gambling businesses. Finally, launching an unlicensed virtual gaming site is simply illegal and can lead to huge legal problems.
How to get an Alderney online gambling license?
Alderney is located on the North of the British Channel Islands. It is a self-governing British Crown dependency, which means it is not part of the UK but is under its jurisdiction. The political structure of Alderney consists of an elected legislature known as the States of Alderney. The States of Alderney are responsible for local governance and make decisions on matters such as legislation, taxation, and policy formulation for the island. The States of Alderney keep a certain degree of autonomy in managing the affairs of the island. However, matters of foreign policy are still handled by the UK.
Important to mention that Alderney is also a part of the Bailiwick of Guernsey. The Bailiwick of Guernsey is a political entity encompassing multiple islands, including Guernsey, Alderney, Sark, and Herm.
The government of Alderney is actively developing the online gambling business in its country, as well as improving its legislation to make the iGaming industry comply with international standards.
Many gambling operators want to obtain an Alderney gambling license due to the great reputation of the jurisdiction. The availability of this permit increases the level of trust among players in the gambling enterprise. Operators who are not associated with criminals, run an honest gaming platform, and meet all the standards and requirements of the country can purchase an Alderney gambling license.
The Alderney Gambling Control Commission is a local body, which regulates egambling and issues permits to operators. This board is actively working to combat money laundering and crime, as well as ensuring that all consumer rights are secured. The AGCC closely monitors the industry to ensure that funding, management and operation of iGaming remain free from criminal influence. Moreover, the Gambling Control Commission AGCC controls that access to gaming platforms is prohibited for minors and potentially vulnerable persons.
It is worth noting that holders of the local permit are allowed to take advantage of the hosting facilities and the telecommunication networks on Alderney and Guernsey, which are both a part of The Bailiwick of Guernsey.
Types of Alderney Gaming License
B2C license and Associate Certificate
This type of license belongs to the 1st category and is intended for gambling operators who are citizens of Alderney and foreign citizens. The difference is that citizens of Alderney receive a license, and foreign companies are issued with an Associate Certificate. Holders of this permit have the right to offer different types of gambling, verify the ID identification of the users, manage the users’ funds, etc.
B2B license and Associate Certificate
Software vendors wishing to sell their product to gambling operators must obtain a category 2 license. This type of permit allows operators to cooperate with providers of gambling content or casino software. Like a B2C license, a B2B license is issued to citizens of Alderney, and foreign entities can get an Associate Certificate.
The validity period for both permit types above is one year.
A temporary license is intended for owners of other jurisdictions’ licenses. Holders of this permit are entitled to offer gambling activities for a specified period of time. Temporary licenses are issued for 29 days or 59 days with interruptions of up to 6 months.
If the operator wants to obtain a full license after the expiration of the temporary license, he must submit an application within 42 days.
Procedure for obtaining a gambling license for Alderney
The process of obtaining a gambling license for Alderney is very complicated and time-consuming. Consideration of the applicant’s documents takes approximately 4-6 months if we don’t take into account the procedure for collecting the necessary package of documents. If the information provided by the applicant does not match or the operator didn’t provide a complete package of documents, AGCC will send it back to fill in the modifications. Therefore, in order to eliminate the risks of refusal or return of documents, operators often ask for help from qualified lawyers.
Requirements for obtaining B2C and B2B licenses:
Conditions that must be met before obtaining a license:
- The online gambling business in Alderney is required to fully comply with local laws.
- Register an enterprise in Alderney, which is a part of the British Channel Islands.
- Submit an application.
- Pay a deposit of £10,000.
- Provide the regulator with a business plan.
- Confirm the availability of the AML-CFT Policy.
- Provide detailed information about the games.
- Provide information on the withdrawal of funds for players from the platform.
- Confirm the availability of RNG, and RTP certificates.
- Submit other required documents to apply for Alderney gambling license.
The license acquisition algorithm includes a close check of the iGaming website by the competent body. The regulator needs to ensure that the newcomer will operate fair and that unpleasant incidents under criminal influence will not spoil the reputation of the jurisdiction.
Conditions for getting a temporary license:
- Submit the application and the required package of documents.
- Pay a deposit of £5,000.
- Provide a business plan.
- Provide all the necessary information about the beneficiaries of the company.
- Provide data on all corporate structures involved in the process.
Operators who want to get an Associate Certificate do not need to be in the territory of Bailiwick. However, for the office and resident representative of the company, physical presence is mandatory.
How much does an Alderney gambling license cost?
|Payment||B2C permit||B2B permit||Temporary permit|
|Submitting an application||£17,500 (this fee doesn’t include the cost of the permit)||£17,500 (this fee doesn’t include the cost of the permit)||£10,000 (It is necessary to submit an initial deposit of £5,000 before approval)|
|£35,000 (license cost included)||£35,000 (license cost included)|
|License renewal||£35,000 — £400,000 per year (amount depends on NGY — Net Gaming Yield)||£35,000 per year||£10,000 per year|
|Gambling business partnership fee||£3,000 per year (one partnership)||£3,000 per year (one partnership)||£3,000 per year (one partnership)|
Also, online gambling business in Alderney may be charged extra fees for other additional certificates, services and inspections such as:
- Key Individual Certificates;
- Core Services Associate Certificates;
- Application modification;
- Hosting facilities;
- Gaming equipment inspections, etc.
Gambling businesses are tax-free in the jurisdiction, which is a huge advantage for casino owners.
Disadvantages and advantages of acquiring a gambling license in Alderney
Advantages of running a virtual gambling business in Alderney
- Customer trust.
- No taxation.
- Straightforward application procedure.
- Fast consideration process.
- An opportunity to use local hosting facilities
- A single license for all gambling services.
- High license cost.
- Strict requirements of the local regulator, close checks of operators for the absence of criminal influence.
How LicensingAid can help you?
Feel free to contact us if you need professional advice on any questions regarding online gambling licensing. Our experts provide support in registering a company or trademark, collecting required documents, choosing a design for a virtual casino and opening a merchant account. You can also check out our articles on other online gaming licenses.