Vanuatu, an island nation in the South Pacific known for its picturesque beaches and unique culture, announced introduction of a new licensing system for online gambling. This initiative aims to simplify the process of obtaining licenses for companies seeking to enter the online gambling industry. Regulatory changes developed by the Vanuatu Financial Services Commission (VFSC) aim to create a transparent and efficient environment that promotes a balance between attracting investment and protecting the rights of market participants. The innovation is expected to increase Vanuatu's competitiveness in the global digital entertainment market and stimulate the country's economic development.

Reasons that prompted Vanuatu to implement the new system

Solution Vanuatu on introducing a simplified online gambling licensing system relies on several key factors driven by current economic and technological trends:

  1. The need to modernize the regulatory environment. With the rapid development of digital technologies and the globalization of the gaming industry, Vanuatu's existing regulatory framework required updating to meet international standards. A simplified and more transparent licensing system is designed to facilitate interaction with international companies and strengthen the legal framework, which is important for maintaining the principles of fair play and protecting players.
  2. Desire to attract foreign investment. Vanuatu is keen to use the new system as a tool to attract foreign investors into the gambling industry, which could become a significant source of income for the economy. Online gambling is recognized as one of the fastest growing areas in the global economy, and participation in this segment will provide Vanuatu with access to new markets and technologies.
  3. Compliance with international requirements. The global community is increasingly focusing on regulating online gambling in order to minimize the social risks associated with gambling. Introducing strict but fair licensing rules will help Vanuatu integrate into the global regulatory system and raise its profile as a responsible jurisdiction.
  4. Development of internal infrastructure. The introduction of a new licensing system involves the parallel development of digital and communications infrastructure, which in turn stimulates the growth of related sectors such as IT and telecommunications. This will help create new jobs and increase the level of technological literacy of the population.
  5. Increasing competitiveness on the global stage. The introduction of new regulatory mechanisms should increase Vanuatu's attractiveness as a destination for international business, allowing the country to compete with established jurisdictions such as Malta and Curacao, which have already established themselves in the market as online gambling hubs.

Hence, updated permitting mechanism in Vanuatu becomes a key stage in the process of updating the country's economic structure. This opens up additional prospects for progress and improvement in the digital economy.

Description of the new licensing system

The Vanuatu Financial Services Commission plays a key role in regulating and monitoring online gambling activities. The VFSC is responsible for issuing licenses, supervising the activities of licensees, and ensuring compliance with the norms and standards established by the new system. The Commission also deals with complaints and disputes arising between players and operators, ensuring fairness and transparency in the gaming process.

Key features of the new licensing system:

  • Remote application submission

As part of the new licensing system, all applications for a license can be submitted remotely through a specialized Internet portal. This simplifies the process for foreign companies and reduces administrative barriers. The platform provides the facility to upload required documents and interact with VFSC online.

  • Cost and terms of license

Cost of registering a gambling license in Vanuatu is €5,000, making the initial investment relatively affordable compared to other jurisdictions. The license is issued for a period of 15 years, which significantly exceeds typical licensing terms, which are usually limited to 1-5 years. This provides long-term stability and planning for operators.

  • Annual license fees and taxes

The annual license fee is €10,000. This fee is payable annually and is part of the required costs to maintain the license. In addition, a tax of 1% of gross gaming revenue (GGR) has been introduced, which represents a relatively low tax rate compared to other regulatory jurisdictions. The low tax barrier makes Vanuatu an attractive jurisdiction for large international operators.

These measures, together with the role of the VFSC, create a transparent and effective regulatory environment for online gambling in the jurisdiction of Vanuatu. The simplified licensing system, accompanied by competitive costs and a long-term vision, is designed to attract global gaming companies and contribute to Vanuatu's economic growth.

Comparison of Vanuatu's online gambling licensing system with other jurisdictions

Vanuatu, Curacao and Malta are significant hubs for online gambling, each offering unique conditions for operators. A comparison of these jurisdictions reveals both commonalities and key differences in their approaches to licensing and regulation:

License fees and entry costs:

  • Vanuatu offers a relatively affordable license cost of €5,000 with an annual fee of €10,000. This makes the jurisdiction accessible to many companies.
  • Kurasao known for its one general license, which allows it to cover all types of gaming activities. The cost of obtaining and maintaining such a license is approximately €25,000 per year.
  • Malta offers a more granular approach with four classes of licenses, each focused on specific types of games. The cost of a license varies from €25,000 to €35,000 per year depending on the class.

License validity period:

  • Vanuatu stands out by offering a 15-year license, which provides long-term stability for operators.
  • Kurasao and Malta offer licenses with a shorter validity period - usually from 1 to 5 years, after which renewal is required.

Taxation:

  • Vanuatu has a low tax rate of 1% of gross gaming income, making it one of the lowest in the industry.
  • Kurasao also offers a low tax rate of 2% of net gaming income.
  • Malta taxes operator income, the rate of which depends on the type of license and can reach up to 5% of income.

Regulatory Environment and Player Protection:

  • Vanuatu strives to create a transparent and fair regulatory environment with an emphasis on protecting the rights of players.
  • Kurasao and Malta are recognized for their stringent regulatory standards, especially Malta, which is considered one of the most regulated jurisdictions with high standards of data protection and gaming security.

Although Curaçao and Malta remain popular choices among online gambling companies, Vanuatu offers competitive conditions, especially in terms of license costs and taxes. This makes the jurisdiction attractive to new and existing operators seeking to maximize their profits while complying with international regulatory standards.

Conclusion

Introduction of a new online gambling licensing system in Vanuatu was an important advance for the economy. It is expected to increase government revenue through licensing fees and taxes, which in turn will improve funding for public programs and infrastructure projects. Moreover, the influx of foreign investment in the gambling business can stimulate the creation of new jobs, especially in the areas of IT and customer service, thereby reducing unemployment and increasing the overall standard of living of the population.

The introduction of a simplified and transparent licensing system puts Vanuatu in line with leading online gambling jurisdictions such as Malta and Curacao. This positions the country as an attractive platform for international gaming operators seeking a stable and long-term regulatory environment. As a result, Vanuatu can expect to see an increase in the number of registered online gambling companies, strengthening its reputation as a reliable and innovative gambling hub.

  • The role of the consulting company TK DEAL

TK DEAL plays an important role in simplifying the process of obtaining licenses for foreign investors, offering a full range of support and consulting services. From the initial submission of documents to the final receipt of the license, TK DEAL provides support at every stage, ensuring that all procedures comply with the laws of Vanuatu. This support not only makes it easier for new companies to enter the market, but also helps maintain high standards of transparency and fairness in the country's gambling industry.