Vanuatu Enhances Its Online Gambling Licensing Framework
Vanuatu, an island nation in the South Pacific, has long been a pioneer in the online gambling industry. Recently, Vanuatu unveiled a new licensing framework that solidifies its position as an attractive destination for online gambling operators. The newly amended regulations were officially launched by the Vanuatu Gaming Authority (VGA) in July 2024. These updates to the previous licensing system, dating back to 1993, introduce an entirely online application process aimed at operators targeting pre-regulated markets.
Key Features of the New Vanuatu Interactive Gaming License Cost:
- Application Fee: EUR 5,000 ($5,370)
- Annual License Fee: EUR 10,000 ($10,700)
- License Validity: 15 years from initial issuance
- Wagering Activity Tax: Flat 1% on Gross Gaming Revenue
- URLs Included: Two per license, with additional URLs available for a fee
The online application portal, administered by the newly established VGA, is designed to reduce processing times while ensuring rigorous background checks on all applicants. The Vanuatu Department of Customs and Inland Revenue will act as the gambling regulator, with applications processed by VGA Limited under a public-private partnership arrangement.
The new application process has been designed to ensure timely processing while at the same time allowing for strict background checks prior to any license application being granted.
The new framework builds upon Vanuatu’s established reputation in the online gambling industry. The country first approved online gaming in 1999, regulated by the Finance Ministry and the Department of Customs and Inland Revenue. The Interactive Gaming Act of 2000 provides the regulatory framework for online gaming activities and other communications media.
Vanuatu’s Appeal as a Licensing Jurisdiction:
- Political Stability: Stable governance and supportive regulatory environment.
- Sophisticated Infrastructure: Advanced technology and support systems.
- Minimal Tax Regime: Attractive tax policies for businesses.
The Vanuatu Financial Services Commission (VFSC), an independent statutory body, regulates the country’s financial services industry, including online gambling. To obtain a gambling license in Vanuatu, operators must meet several eligibility criteria:
- Corporate Structure: Registration as a legal entity in Vanuatu or demonstration of a registered presence in the country.
- Financial Stability: Proof of sufficient financial resources for sustainable operation and payment of fees and taxes.
- Technical Capability: Demonstration of secure platform operation in compliance with relevant laws and regulations.
- Compliance: Implementation of policies and procedures to comply with anti-money laundering and counter-terrorism financing laws.
The new licensing framework is primarily aimed at B2C operators, with provisions for White Label brands similar to other jurisdictions like the Isle of Man. License holders are responsible for ensuring compliance with all rules by any White Label partner websites operated under their umbrella.
Macyn White, CEO of the Vanuatu Gaming Authority, expressed confidence in the new regulations, stating, “We are proud of our pioneering roots in the eGaming industry and are confident that our new regulations will once again make us the center of attention and a desirable jurisdiction for online gambling brands from across the world.”
As Vanuatu continues to evolve its regulatory framework, it aims to maintain its position as a trusted and stable eGaming jurisdiction. The new online application process is set to begin processing applications in early July, marking a new chapter in Vanuatu’s role in the global online gambling industry.
How does Vanuatu’s regulatory environment compare to other popular gambling jurisdictions?
Vanuatu’s regulatory environment is highly favorable when compared to other popular gambling jurisdictions. One of the most attractive features is the tax rate, which is a low 2.5% of gross profit. This is significantly lower than the tax rates in some jurisdictions, where gaming taxes can reach as high as 50% of gross profits.
Moreover, Vanuatu offers a stable political environment, sophisticated infrastructure, and a minimal tax regime, making it an ideal location for online gaming operators. The probity standards applied in Vanuatu are on par with those used in Australia and other first-world jurisdictions that permit gambling. This ensures a high level of security and compliance.
Additionally, Vanuatu provides extensive identity checks, self-imposed exclusions, access to complaints resolution, and links to problem gambler sites. These measures contribute to making Vanuatu one of the safest and most secure jurisdictions for interactive gambling.
How does Vanuatu’s political stability contribute to its appeal to gambling operators?
Vanuatu’s political stability is a key factor contributing to its appeal as a jurisdiction for gambling operators. Here are several ways in which Vanuatu’s political environment enhances its attractiveness:
- Long-term stability: Since gaining independence in 1980, Vanuatu has maintained overall political stability despite occasional political fragmentation. This provides a reliable environment for businesses to operate in.
- Democratic system: Vanuatu’s functioning democratic system adds legitimacy and predictability to its governance, making it a more attractive location for operators.
- Supportive government policies: The Vanuatu government has actively worked to establish the country as a premier licensing jurisdiction for online gaming. The government approved online gaming in 1999 and has since developed a supportive regulatory framework.
- Consistent regulatory approach: Political stability has allowed for a consistent approach to regulating the gambling industry. The Interactive Gaming Act of 2000 provides a stable framework that has been in place for over two decades.
- Minimal political interference: While Vanuatu’s political system can be fragmented, it generally allows businesses to operate without excessive political interference.
- Commitment to economic development: Successive governments have shown a strong commitment to developing Vanuatu’s economy, viewing the online gambling industry as a key part of this strategy. This political will provides confidence to operators.
- International reputation: Vanuatu’s political stability enhances its reputation as a secure financial and commercial investment center, which is attractive to gambling operators.
- Regulatory continuity: The stability of the political system ensures continuity in regulatory bodies like the Vanuatu Financial Services Commission (VFSC), providing a consistent regulatory environment for operators.
- Low tax regime: Political stability has enabled Vanuatu to maintain a low tax regime, which is particularly appealing to gambling operators.
- Infrastructure development: Political stability has facilitated the development of sophisticated infrastructure necessary for online gambling operations.
Vanuatu Gaming Authority
