Advantages of Vanuatu gambling license
A simplified process for obtaining a license
A gambling license in Vanuatu can be obtained more quickly and easily compared to other jurisdictions, lowering the barriers to entry into the market. The licensing process usually takes around 60 days, allowing operators to start operations more quickly.
Authoritative regulator
The VGA provides a high level of oversight of operators, ensuring fair and responsible gaming. This increases trust in licensed companies and their services.
Recognized Reputation
The Vanuatu license is trusted in the global gambling industry due to the strict legislative controls and integrity requirements for operators.
Attractive tax regime
Vanuatu has no corporate tax, income tax, or VAT on gambling profits, making the jurisdiction financially advantageous for operators.
Political stability
The country has a stable political environment, which provides a safe and secure environment for long-term gambling activities.
Lack of strict restrictions for players
Locals and tourists are free to use offshore gaming sites, which expands the market and opportunities for operators.
Thriving online gambling market
The online gambling market in Vanuatu is booming, creating growth and profit opportunities for operators already present in the jurisdiction.
Disadvantages of Vanuatu gambling license
Despite its many advantages, gambling licensing in Vanuatu has several disadvantages that may affect operators.
Market uncertainty
The legal framework for the gaming industry is under reform, and its future development remains uncertain, which may pose risks to operators’ long-term planning.
Limited regulator resources
The VGCB is a small regulator and may not provide as much support and resources as larger international gaming bodies.
Lack of skilled professionals
As a small country, Vanuatu faces a shortage of gaming industry professionals, which can make it difficult for operators to find local professionals to work with.
Despite these shortcomings, Vanuatu remains an attractive jurisdiction for operators due to its tax system and reputable regulator, but companies should consider the potential risks and challenges when choosing this country to do business in.
Current Gambling Regulations the Gaming Industry in Vanuatu
Online gambling was approved by the Government of Vanuatu in 1999, and in 2000, the Interactive Gambling Act was enacted to regulate operators of online casinos, fixed odds betting, and totalizators.
Under the Act, the issuance of gambling licenses was carried out by the Vanuatu Gaming Authority (VGA) under the supervision of the Ministry of Finance and the Department of Customs and Revenue. The VGA is a member of the International Association of Gaming Regulators (IAGR), which means it is committed to international standards of transparency and integrity in the licensing process.
An important role in the regulatory process is played by Global Gaming Regulators Limited, which acts as a consultant to the government and is responsible for administering the provisions of the Act.
In addition to the main legislation, there are specific requirements for online casino operators, such as the Consolidated Anti-Money Laundering and Counter-Terrorist Financing Act No 13 of 2014 and other relevant local laws. Under current legislation, companies must ensure financial and technical security, conduct system audits and develop mechanisms to protect minors from gambling. This confirms Vanuatu’s commitment to maintaining a high level of accountability in the gambling industry.
Gambling License changes
Vanuatu has recently introduced an updated licensing structure to improve and simplify the process of obtaining licenses for online gambling. The main changes relate to regulatory bodies, applications, fees, and taxation.
Regulatory Authority
The licensing process is now fully overseen by the Vanuatu Gaming Authority (VGA), with the Department of Customs and Inland Revenue continuing to serve as the regulator, ensuring strict oversight and compliance with legislation.
Online application process
To improve efficiency, license applications can now be submitted entirely online through a new portal managed by the VGA. This move greatly simplifies the licensing process and reduces application processing time while ensuring strict background checks on applicants.
Fees and license term
Registration and annual fees have been set at €5,000 for application and €10,000 for annual license renewal, respectively. The license is now issued for a term of 15 years, allowing operators to plan for a longer period.
Taxation
The new flat tax on betting is only 1% of gross gambling revenue. Vanuatu’s tax regime, therefore, remains attractive to operators due to its competitive tax rate.
These changes are aimed at modernizing the regulatory environment, increasing transparency, and attracting global operators, which strengthens Vanuatu’s position as a competitive jurisdiction for online gambling.
When changes take effect
The updated rules are effective July 2024.
Types of Vanuatu Gaming Licenses
Vanuatu offers one type of interactive gaming license for online casino operators. This license provides the ability to offer a wide range of gambling games, including:
Sports gambling
Operators can accept bets on a variety of sporting events, allowing players to participate in gambling based on the outcome of the competition.
Table games
The license covers classic table games such as poker, blackjack, and baccarat, which are popular among online casino players.
Roulette
Operators can offer different versions of roulette, providing players with a variety of gaming options.
Bingo and lottery
The license also allows the organization of bingo games and lotteries, which expands the range of gambling games offered.
Requirements for obtaining a Vanuatu gambling license
Obtaining a gambling license in Vanuatu requires compliance with several strict requirements aimed at ensuring safety and transparency in the gambling industry:
applicant information: The applicant must be a registered local company in Vanuatu with full name, registration number, physical and postal address, and contact information;
documentation: IDs of all directors and major shareholders, certificate of incorporation, memorandum of association, articles of association, and other corporate documents are required;
information on ultimate beneficiaries: The applicant must provide full details of the beneficial owners, their IDs, and ownership structure;
corporate requirements: Minimum number of shareholders – one, minimum number of directors – one, corporate directors are allowed. There are no company secretary requirements, but a registered office/agent is required;
local requirements: Local directors, meetings, and state registers of directors and shareholders are not required;
financial stability: You must demonstrate financial strength, provide a business plan, and evidence of sufficient capital to cover liabilities;
criminal background check: All directors and beneficiaries must pass a criminal background check and declare any past convictions or bankruptcies;
operational requirements: The applicant must describe the business model, including services offered, marketing strategy, and technical infrastructure;
AML/CTF compliance: It is necessary to appoint a responsible officer and implement anti-money laundering and counter-terrorist financing procedures;
responsible gambling measures: It is important to develop and implement policies and procedures to prevent gambling and assist players.
Once a license is obtained, operators must pay an annual fee to maintain it and comply with ongoing regulatory requirements.
How to Apply for new gambling license in Vanuatu
The process of obtaining a gaming license includes several steps:
Document preparation.
It is necessary to prepare and collect basic documents, including incorporation documents, certificate of incorporation, audit report, management team resume, description of offered gaming products and services, and marketing plan. You can get a full list of the required documents from our lawyers. There is also a Checklist for applying to the regulator’s website.
Applying.
The completed application and other documents are submitted online through the Vanuatu Gaming Authority (VGA) website. It is also important to pay the consular fee as directed by the authority.
Initial review.
The regulator will initially review the submitted application and supporting documents. Additional information or clarification may be requested if necessary.
Evaluation.
The regulator will comprehensively assess the applicant’s eligibility, financial stability, and operational plans. A background check of directors and beneficiaries will be conducted. The assessment procedure is rigorous but confidential.
Decision.
The regulator will decide on the application, which may be approval, conditional approval, or rejection. If approved, a license will be issued along with specific conditions or requirements.
Post-license requirements.
Licensees are required to comply with all regulatory requirements and conditions imposed by the VGA. This includes regular audits and reporting, as well as license renewal within established timeframes.
How to Establish a New Company in Vanuatu
Setting up a new company in Vanuatu requires following certain steps, preparing the necessary documents, and following procedures. Here are the main steps you need to go through to open a gambling company in this jurisdiction:
Selecting the type of company.
Step 1
Determine the type of company you want to register. Vanuatu offers different forms, such as limited liability companies (LLCs) and other options.
Company name.
Step 2
Choose a unique name for your company and make sure it is not the same as those already registered.
Document preparation.
Step 3
Prepare a memorandum of association and articles of association that outline the business objectives, structure, and management rules.
You will also need identification documents for all directors and major shareholders (such as a passport or ID card).
Company registration.
Step 4
Apply to register the company with the Vanuatu Registrar of Companies. This can be done through a local lawyer or corporate agent who will represent you.
Payment of Fees.
Step 5
Pay all applicable registration fees. The registration fee for setting up a new company in Vanuatu can vary and depends on several factors, including the type of company and the amount of authorized capital. It is advisable to contact Gofaizen & Sherle’s advisors for accurate information on current fees.
Opening a bank account.
Step 6
After obtaining the certificate of incorporation, open a corporate bank account with one of the local banks, which will be required to conduct business.
Appointment of local directors and auditor.
Step 7
Appoint at least one local director and select an auditor for the company. While local directors are not mandatory, having one can make the incorporation process easier.
Next, you will need to obtain a license for your business. We have detailed the licensing process above.
By following these steps and complying with all the requirements, you should be able to successfully register a new gambling company in Vanuatu.
Cost for Vanuatu gaming license
The cost of a gambling license in Vanuatu can vary significantly depending on several factors, such as the type of company, the size of the company, and the volume of operations.
The main components of the cost are:
registration fee for registering a new company;
application for a license – about €5,000 (approximately $5,370);
legal and consulting services;
software and technology required to operate your platform;
opening bank accounts and connecting payment systems.
Annual fees include:
Vanuatu offers an attractive tax environment for online gambling companies due to its favorable tax structure.
Corporate Taxation and License Tax
Below are the main aspects of corporate taxation for companies with a Vanuatu Gaming License:
Corporate Tax
Vanuatu has no corporate tax, making it one of the most attractive places to register gambling companies. This means that profits earned from gambling are not taxed at the company level.
Income tax
There is also no income tax, further easing the financial burden on company owners and investors.
Value Added Tax (VAT)
Vanuatu does not levy value-added tax, making transactions simpler and more cost-effective for online gambling companies.
Tax for licensed operators
Licensed gaming companies are required to pay a flat tax of 1% on gross gambling revenue. This tax is a relatively low rate compared to other jurisdictions, making Vanuatu an attractive place to operate a gambling business.
