Alderney Gambling Control Commission

The Alderney Gambling Control Commission was established in 2000 and regulates eGaming in Alderney. The Commission is nonpartisan and fully independent, upholding the very highest international standards for eGaming. The Commission can issue licences to operators and enforces these laws with a lengthy application process and rigorous content testing. Currently, over 30 companies and over 100 websites are licensed under the gaming laws of Alderney.

History of Gambling in Alderney

Alderney is one of the Channel Islands located off the French coast of Normandy. Although it is neither part of the UK nor the Commonwealth of Nations, the UK is responsible for the island’s defence and international relations. Otherwise, Alderney is a separate jurisdiction with its own legislation and taxation. The island covers 3 square miles of land and has a population of just over 2,000. Though it is an independent jurisdiction, for taxation purposes it is considered part of Guernsey. The Guernsey Revenue Service is responsible for tax administration in Alderney, though Alderney has a lower tax rate than Guernsey.

The UK Gambling Act of 2005 made it illegal for jurisdictions that are not part of the EEA or located in either the UK or Gibraltar to advertise and provide gambling services to the UK market. Alderney is one of the few countries that was white-listed, giving operators and investors a great opportunity to reach the UK market. The island quickly gathered investors looking to set up shop on Alderney. However, Alderney approached this attention with caution, creating tight laws to stop global investors from taking advantage of its situation. Its low taxation rate and access to the UK market have been the main selling point for operators.

Remote Gambling Licence

The Alderney Gambling Control Commission different types of licences based on the scope of services an operator may provide.

Category 1 Licence

This is a B2C licence that permits the operator to organise gambling operations. This includes registration and verification of players, contractual relationships with players and fund management of players.

Category 2 Licence

This B2B licence permits operators to provide a gambling platform. The operator must have a registered company that is located either in Alderney or Guernsey.

Core Services Associate Certificate

Licence holders can supply gambling software, process customer deposits and provide various management functions.

Category 2 Associate Certificate

This is the same as a Category 2 Licence, only the holders of this certificate do not need to be based in Alderney or Guernsey.

Hosting Certificate

Operators have to host their Gambling Equipment in Certified Hosting Facilities. These can be based in Guernsey or can be from anywhere else in the world.

Temporary eGambling Licence

Foreign companies can apply for a Temporary eGambling Licence that allows them to provide the same services as a Category 1 Licence.

Key Individual Certificate

Category 1 Licensees must have a Key Individual who represents the company.

Application and Fees

To apply for a licence, operators must complete the relevant application forms and submit the supporting documents. A Key Individual must be proposed and then deposits must be made to the Alderney Gambling Control Commission. The deposit fees are:

• eGambling Licence: £10,000 initial deposit and £5,000 supplementary deposit
• Category 1 and 2 Associate Certificates: £10,000 initial deposit and £1,000 supplementary deposit
• Core Service Associate Certificate: £5,000 initial deposit and £5,000 supplementary deposit
• Hosting Certificate: £5,000 initial deposit and £5,000 supplementary deposit
• Temporary Use Licence: £5,000 initial deposit and £5,000 supplementary deposit
• Key Individual: £1,000 initial deposit, with a £1,000 supplementary deposit

In all cases, there is a modification fee of £100. Additional charges include:

• Approval of Internal Control Systems: £10,000
• Changes to Internal Control Systems: £5,000
• Approval of Gambling Equipment: £5,000
• Endorsement of Approval of Equipment on Associate Certificate: £5,000
• Inspections of Operations: £7,500
• Special Investigations: £5,000 and £2,000 supplementary deposit

Annual Fees and Taxation

If an operator wants to launch a casino or a sportsbook, they will need to apply for a Category 1 Licence. The fees for the first year of the licence are the following:

• £17,500 for Category 1 (operator has no other licence in Alderney)
• £35,000 for Category 1 (operator holds another licence in Alderney)

Afterwards, they are subject to annual renewal fees depending on how much they earn.

• £35,000 annual renewal for Category 1 where Net Gaming Yield is below £500,000
• £60,000 annual renewal for Category 1 where NGY is £500,000 to £1 million
• £80,000 annual renewal for Category 1 where NGY is £1 million to £5 million
• £130,000 annual renewal for Category 1 where NGY is £5 million to £7.5 million
• £200,000 annual renewal for Category 1 where NGY is £7.5 million to £20 million
• £290,000 annual renewal for Category 1 where NGY is £20 million to £30 million
• £400,000 annual renewal for Category 1 where NGY exceeds £30 million
• additional £3,000 per gambling business associate for Category 1

The Alderney Gambling Control Commission has rather high fees, comparable with the UK Gambling Commission. However, after paying these fixed annual fees, there is no tax on the NGY.

Pros for Players

If you find a casino or sportsbook that is registered in Alderney, then here are some of the positives you can look forward to.

Multiple Licensing

Companies that acquire a licence with the Alderney Gambling Control Commission can launch multiple sites. This gives way to more specialised casinos and sportsbooks, boosting competition. As a player, this will mean better deals and bigger bonuses.

Top Quality Games

NetEnt, Ainsworth Game Technology and Playtech are a few of the big-name game developers that hold licences in Alderney. This puts plenty of top-quality content on the table, which operators can supply to their customers.

Safe Banking

One of the main principles in the legislation is that operators must keep players’ money separate from the casino’s funds. This not only enforces safety but it can reduce the processing time casinos need when you request a withdrawal.

Cons for Players

You should always choose carefully when picking your next casino or sportsbook to bet at. Here are some considerations you will want to keep in mind with Alderney-licensed establishments.

Limited Options

Not all operators can obtain licences with the Alderney Gambling Control Commission. The large fees will rule out most of the startups and smaller companies. There are not many operators that are licensed with the Commission, but hopefully, that will change in the near future.

No Legislation (Yet) on Crypto

The Alderney Gambling Control Commission has not issued any legislation relating to virtual currencies or cryptocurrency. It is very strict with its laws and so it may take some time before the Commission publishes any new legislature on cryptocurrencies.

Lengthy Procedure for Disputes

First and foremost, the Commission encourages players to solve their disputes with the operator. If players are still not satisfied then they can reach out to the Commission, but the process is usually quite lengthy.

International Operators

The Alderney Gambling Control Commission is a reputable jurisdiction. It has signed numerous memorandum of understanding agreements with other jurisdictions. Antigua and Barbuda, the Nevada Gaming Control Board, the Danish Gambling Authority, the Alcohol and Gaming Commission of Ontario, the Malta Gaming Authority, and the Jersey Gambling Commission are some of the regulators with which it has relationships. In addition to these, Alderney is a white-listed jurisdiction for the UK Gambling Commission.

Conclusion

There is no question as to the quality of service that licensees must provide. The huge amount of paperwork ensures that all aspects of a casino or sportsbook’s operation are legitimate. The Commission is stringent when it comes to approving any new applicants. Whilst this may turn some operators away, it also ensures a high standard in the market. As it becomes more popular amongst players, there is no doubt that we will see more Alderney-licensed casinos and sportsbooks.