Alderney Gaming License

Open the gateway to global iGaming success with an Alderney Gaming License.

OVERVIEW LICENSING REQUIREMENTS COSTS & TAXATION FAQ's CORPORATE STRUCTURE BENEFITS

The Alderney Gaming Control Commission (AGCC) stands as a premier regulatory body, established in May 2000, to oversee and ensure integrity in iGaming operations on behalf of the States of Alderney.

With a mission focused on maintaining the integrity and fairness of online gambling, the AGCC promotes high industry standards across all facets of electronic gambling, safeguarding against criminal influences and ensuring the protection of players and vulnerable individuals.

Alderney’s established reputation, coupled with its pragmatic approach to regulation, makes it an attractive jurisdiction for both startups and established operators in the iGaming industry.

Alderney Gaming License Overview

Alderney is renowned for its straightforward and efficient licensing process, with the AGCC offering clear, risk-based regulatory frameworks that are adapted to meet the unique needs of the iGaming sector.

Each licensee is assigned a dedicated relationship manager, allowing the AGCC to understand each business’s unique aspects and apply its industry expertise to support growth. This approach minimises administrative burdens on licensees while ensuring compliance with international best practices.

The Alderney gaming license stands out for its prestige, competitive costs, tax benefits, and transparent fee structure. These advantages make Alderney an attractive jurisdiction for iGaming businesses looking to operate within a supportive, reputable, and financially advantageous regulatory framework.

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The Alderney License

The licensing categories offered by the AGCC—primarily distinguished between Business-to-Business (B2B) and Business-to-Consumer (B2C) activities—reflect a deep understanding of the industry’s operational nuances. This categorisation ensures that regulatory provisions are directly relevant to the specific activities and business models of each licensee, further enhancing the regulatory experience.

A unique aspect of Alderney’s licensing regime is the assignment of a dedicated relationship manager to each licensee. This personalised support system is designed to offer bespoke guidance throughout the licensing journey and beyond, ensuring that licensees not only achieve compliance but are also well-positioned to capitalise on growth opportunities. The relationship managers, with their deep regulatory and industry experience, act as invaluable resources for navigating the complex landscape of global iGaming regulation.

Types of Gaming Licenses in Alderney

B2C Licenses:

Category 1 License is for operators engaging directly with consumers. It allows the registering, verifying, and contracting with customers, managing player funds, and offering a broad portfolio of games from either a Category 2 licensed platform in Alderney or other approved platforms.
Category 1 Associate Certificate is available for businesses based outside the Bailiwick of Guernsey, offering similar privileges as the Category 1 License without the need for an Alderney-registered company.

B2B Licenses:

Category 2 License is tailored for entities managing gambling transactions, including the operational management of gambling platforms. It approves a wide range of gambling activities under a single license.
Category 2 Associate Certificate and Core Services Associate Certificate (CSAC) cater to foreign-based companies and third-party service providers, respectively, allowing them to offer their services to Alderney licensees.

A unique offering by Alderney is the Temporary Gambling License, providing operators the opportunity to test the Alderney market for up to 29 consecutive days or 59 days with breaks, enjoying the privileges of a Category 1 license.

The validity period for both License types above is one year.

Advantages and Costs

Holding an Alderney license offers numerous benefits, including access to a prestigious and well-regarded jurisdiction, competitive licensing fees with no hidden charges, and a tax-friendly environment with no gaming duties or VAT applied to Alderney companies. The licensing fees are transparent and depend on the Net Gaming Yield (NGY), starting from an introductory fee of £17,500 for the first year.

Subsequent years’ fees are determined based on the NGY bands, a system designed to proportionately adjust the cost according to the licensee’s revenue.

For Category 1 licenses, which cater to operators directly interacting with consumers, the fees after the first year begin at a set rate for NGY up to £500k. Beyond this threshold, the fees incrementally increase through various bands, peaking for NGY exceeding £30 million. This banded structure extends to Category 1 Associate Certificates for foreign entities, ensuring that international operators are subject to a parallel fee framework. Under the banded structure detailed above, the minimum renewal fee stands at £35,000 and the maximum at £400,000.

For a Category 2 licenses, aimed at software providers and platform operators, the renewal fees are set at £35,000 with an additional fee of £3,000 per gambling business associate, underscoring Alderney’s commitment to equitable and growth-supportive licensing costs.

This fee system highlights Alderney’s forward-thinking regulatory approach, balancing the need for rigorous oversight with the economic realities of operating within the competitive iGaming landscape. For operators, this NGY-based fee structure means that costs are predictably tied to business performance, providing clarity and financial planning stability. The maximum fees set for each band cap the cost, ensuring that even the most successful operators can anticipate their licensing expenses.

Licensing Process and Requirements

The licensing process involves a preliminary application form submission and a deposit, with further assessment focusing on the applicant’s suitability, financial position, and business model. The AGCC conducts thorough investigations into the applicant’s background, business reputation, and financial stability. Post-approval, a testing phase for gaming equipment and the approval of Internal Controls Systems (ICS) is required before operations can commence.

Application Process

Stage 1 – Application form and documentation are submitted and an investigation deposit of £10,000 must be paid (if applying for a Category 1 or 2 License, the applicant will also have to register a company in Alderney).

Stage 2 – Next, the AGCC begins their investigation. This includes assessing the applicant’s suitability through checks on character, business reputation, financial status, ownership and corporate structure, reputation of business associates, and source of funding.

Stage 3 – A meeting is then scheduled with the Director of Regulatory Operations. During this meeting, the applicant is expected to provide details about their business plan, proposed iGaming operations, potential business and executive associates (like external software providers), any corporate entities involved in the operation, and individuals who may need to apply for key individual certificates.

Stage 4 – The AGCC grants the license after the full license fee is paid. However, the applicant cannot start operations until the next stage is completed.

Stage 5 – The fifth stage involves testing the gaming equipment and getting approval for the Internal Controls Systems (ICS).

Stage 6 – Finally, once the application is fully approved, the applicant can commence their business operations.

Requirements to obtain an Alderney License

Development of a business plan.
Submission of various Policies (Terms & Conditions, Know Your Customer/Anti-Money Laundering, Responsible Gaming, etc.).
Provision of comprehensive information about the games.
Explanation of the process for players to withdraw funds from the platform.
Confirmation of the presence of Random Number Generator (RNG), and Return to Player (RTP) certificates.
Submission of thorough Know Your Customer/Due diligence documents for each Director, Shareholder, and Ultimate Beneficial Owner (UBO).

Cloud Services

The online gambling industry is increasingly adopting cloud-based solutions due to their capacity to tackle technical issues. The AGCC has set up technical standards for these cloud solutions, offering reassurance to both the industry and its players.

Cloud hosting offers iGaming companies several advantages, including flexibility, security, choice, real-time analytics, and predictable costs for startup and hosting. The AGCC was a pioneer in establishing technical standards for cloud solutions in 2013. Numerous service providers now provide cloud platforms approved by the AGCC, which are customised to meet the needs of online gambling operators. These platforms adhere to the AGCC’s strict international security requirements as part of its licensing framework.

The AGCC’s technical standards for eGaming Cloud encompass the use of cloud systems for gameplay, as well as processes involving personal or financial information, such as financial transactions and registration.

Consequently, operators who utilise the cloud for these activities must have their cloud-based service approved by the AGCC. Licensees are also utilising a variety of mainstream cloud services for other data types.

Licensing Cost Comparison & Taxation

Jurisdiction	Application Timeframe	Local Officer Requirements	License Costs	Annual Renewal Costs	Corporate Taxation	Gaming Tax	Local Server Requirement	Local Company Requirements
Alderney	3-6 months	Yes	£17,500	£35,000-£400,000	0%	0%	No	No
Anjouan	3-4 weeks	No	€17,000	€17,000	0%	0%	Replication	No
Curacao	8-10 weeks	Yes	€54,893	€47,450	2%	0%	Yes	Yes
Cyprus	6-9 months	Yes	€30,000	€30,000	12.5%	13%	Replication	Yes
Gibraltar	6-9 months	Yes	£100,000	£100,000	12.5%	1% max £425,000	Yes	Yes
Isle of Man	3-6 months	Yes	£36,750 – £52,500	£36,750 – £52,500	0%	0.1 – 1.5%	No	Yes
Kahnawake	4-6 months	No	$40,000	$20,000	0%	0%	Yes	No
Malta	6-12 months	Yes	€25,000 – €85,000	€25,000-€85,000	35%	5% max €600,000	Yes	Yes
Ontario	6-12 Months	No	$100,000	$100,000	15%	15-25%	No	No
Tobique	6-8 weeks	No	€36,000	€18,000	0%	0%	Compliance Platform	No
United Kingdom	3-6 months	No	£4,224- £91,686	£4,199-£793,729+	19%-25%	15%-21%	No	No

The figures presented in the table above serve as estimates and are provided for informational purposes. It’s important to note that certain costs are approximations and may vary based on fluctuations in exchange rates.

It’s crucial to understand that the mentioned costs exclusively pertain to licensing fees and do not encompass expenses associated with legal fees, compliance procedures, or liaising with gaming regulatory authorities.

Furthermore, it’s essential to consider that additional charges might apply, including fees for key person licenses, local substance requirements, minimum capital obligations, and other regulatory prerequisites beyond the scope of the license costs.

Explore the diverse jurisdictions we specialise in through our comprehensive licensing support. Select a location from the dropdown menu to gain detailed insights into each region’s licensing landscape, requirements, and strategic advantages for your iGaming venture.

The Alderney Gaming License FAQ

Can international operators apply for an Alderney license?

Yes. 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.

What are the applicable Gaming tax rates?

Alderney companies are not subject to gaming duties or VAT, and they enjoy a zero-rated tax on company profits and are exempt from capital gains taxes.

What gambling activities are covered by an AGCC Licence?

The AGCC structure is designed to cover all forms of gambling activity under a single licence. The system is sufficiently adaptable to keep up with new trends and technologies, fostering and promoting innovation in our rapidly evolving industry.

For how long are Licenses valid?

Licenses are valid for a period of one (1) year.

Where does the Alderney licence permit me to operate?

A licensee from Alderney has the freedom to operate in any location where it is not prohibited. The AGCC does not dictate the operational locations for a licensee due to the numerous variables involved; however, it is the licensee’s responsibility to ensure they do not engage in illegal operations.

Do our shareholders, Directors or staff have to be based in the Bailiwick to be licensed by Alderney?

It is not mandatory for either license or certificate holders to maintain a physical presence in the Bailiwick for regulatory reasons. However, Alderney companies are required to have a resident agent and a registered office, and a resident representative is necessary for the Category 1 Associate Certificate. Those who decide to establish themselves in the Bailiwick are granted the indirect tax benefit of no VAT charges. It is up to the operator to determine if this physical presence would be advantageous to their business model.

Do my servers have to be based in Alderney?

It is feasible to obtain a license from Alderney and have your servers located in an authorised data centre outside of the Bailiwick using cloud services for B2C and B2B licenses and Associate Certificates. If you opt for a Category 2 License (B2B) instead of a Category 2 Associate Certificate (B2B), specific crucial functions related to conducting the gambling transaction must be carried out on servers within the Bailiwick.

What are the testing requirements?

The AGCC’s guidelines outline the technical standards. Well-known testing bodies are well-versed in Alderney’s standards. A cross-jurisdictional testing framework exists among Alderney, the UK, IOM, and Denmark. Therefore, if content is endorsed in any of these jurisdictions, it is expected to comply with AGCC criteria. This also shows that our standards are consistent and harmonised with key regulated markets.

What does it mean for Alderney now that the UK is no longer part of the EU?

Due to Alderney’s independence from the EEA and EU, Brexit did not and does not directly impact Alderney’s iGaming regulations, ensuring that Alderney license holders are not affected. This stability allows Alderney to offer a sense of security to operators and suppliers, enabling its license holders to prosper by leveraging the extensive global connections available through Alderney. Moreover, given the constraints faced by businesses licensed in the EU/EEA seeking to enter non-EU/EEA markets, the Alderney license presents an appealing solution, facilitating its license holders’ expansion into these lucrative markets.

How long does the Alderney licensing process take?

The timeline can vary based on application complexity and completeness but usually takes 3-6 months.

How does Alderney ensure responsible gambling practices?

The AGCC mandates licensees to adhere to responsible gambling guidelines.

How does Alderney address Anti-Money Laundering (AML) compliance?

Alderney requires licensees to have effective AML policies and procedures.

Is cryptocurrency gambling allowed under an Alderney license?

Currently the AGCC does not approve the use of Cryptocurrency for iGaming purposes. (deposits/withdrawals)

Are there any restrictions on advertising for Alderney licensees?

Licensees must comply with advertising standards set by the AGCC.

Are there any Responsible Gambling obligations?

• There are requirements for self-exclusion that need to be disclosed 24 hours after it is requested.
• Adherence to the protocols of each market you enter into and its terms.
• Implementation of responsible gambling tools, such as the ability for players to set deposit limits, wager limits, cooling-off periods and session limits, is mandatory.

How does Alderney handle license violations?

The AGCC can impose fines, suspend, or revoke licenses.

Are there any requirements for player complaints procedures?

Licensees must adhere to the following protocols:
• A clear internal complaints process
• Protocols for responding to the complainant promptly
• Ensuring record retention of complaints
• Providing escalation process
• An approved Alternative Dispute Resolution (ADR) mechanism for escalated complaints

Are there requirements to segregate player funds?

Yes. Licensees are required to segregate player funds from operational funds. Player funds should be held in a separate account.

Can operators hold licenses from multiple jurisdictions including Alderney?

Yes, subject to compliance with each jurisdiction’s regulations.

Should key Personnel be disclosed?

Yes.

What kind of financial audits are Alderney licensees subject to?

Licensees undergo annual financial audits as part of regulatory compliance.

Corporate Structure

Strategic Framework for Global Expansion: Leveraging Alderney’s Gaming License and Tax Advantages for International Market Penetration.

The corporate strategy for our gaming licensing services in Alderney is intricately designed to provide a comprehensive and beneficial framework for entities looking to penetrate the global online gaming market.

By establishing a company in Alderney, entities can take advantage of Alderney’s esteemed gaming license, which is renowned for its robust regulatory standards and global recognition.

This strategic move not only positions the company within a jurisdiction that supports international online gaming ventures but also capitalises on Alderney’s competitive corporate tax advantages.

Establishing a company in Alderney with a gaming license lays a cost-effective foundation for expansion into international markets. The Alderney license serves as a cornerstone for entering not just the UK market, through the acquisition of a UK Gambling Commission (UKGC) license, but also other key markets such as Italy, Spain, and Cyprus. Each of these countries has its regulatory requirements and market dynamics, and the credibility of an Alderney license facilitates navigation through these complexities.

In summary, choosing Alderney as the base for your online gaming company offers a blend of regulatory support, tax advantages, and strategic positioning for global market access. This framework is devised to support entities in navigating the complex landscape of international iGaming regulations while maximising financial and operational efficiencies.

Corporate Structure - Alderney Gaming License

Benefits of an Alderney Gaming License

Unlocking Growth and Assurance: The Dual Advantages of Alderney Licensing for New and Established Operators.

For Start-ups

Global Recognition: Enhances credibility with players and stakeholders.
Comprehensive Regulatory Support: Guidance for navigating the iGaming landscape.
Innovative Infrastructure: Access to cutting-edge technology and cloud services.
Tax Efficiency: Attractive fiscal conditions for business growth.
Security Assurance: Meets stringent international security standards.
Flexibility in Licensing: Catering to both B2C and B2B models.

For Existing Gaming Companies

Regulatory Prestige: Maintains a high standard of player trust.
Operational Expansion: Facilitates market diversification and innovation.
Strategic Partnerships: Opportunities with other Alderney-licensed entities.
Cost Management: Predictable fees aligned with business performance.
Technical Standards Compliance: Assurance of software and operational integrity.
Market Stability: A stable and reputable regulatory environment for sustained growth.

ALDERNEY GAMING LICENSE - FREE CONSULTATION