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Vanuatu Updates Gambling Licensing Framework After 31 Years

Vanuatu Gaming Authority CEO Macyn White states: “Vanuatu's licensing system has been optimized to ensure that no time is wasted in the setup process.”


Vanuatu Updates Gambling Licensing Framework After 31 Years

Vanuatu, a Pacific island nation renowned for its natural beauty and welcoming environment, is seizing the opportunity to diversify its economy in an era where online gambling is rapidly growing. The country has embraced this trend by launching its updated online gambling licensing framework, joining a growing list of jurisdictions looking to tap into new revenue streams.


Considered to be one of the first jurisdictions to offer online gambling licenses in the 1990s, Vanuatu recently transitioned to a fully online application process. The new regulations, which amend the Vanuatu Interactive Gaming Act, are updated versions of the previous licensing system that had been in place since 1993.


The decision to revamp its regulatory framework marks a significant shift after 31 years of regulating gambling in the country.


To shed light on the motivations and goals behind this strategic move, Asia Casino News (ACN) conducted an exclusive email interview with Macyn White, the Chief Executive Officer of the Vanuatu Gaming Authority (VGA). White shared the key reasons behind Vanuatu's decision to revamp its online gambling policies and what this new framework means for the future of the nation's economy.



Why Vanuatu Decided to Launch its New Licensing Framework


The Vanuatu Interactive Gaming License (VIGL) is designed for business-to-consumer (B2C) operators focusing on a wide range of eGaming sectors, such as sports betting, online casinos, poker, and more. The license is valid for 15 years from the date of issuance and facilitates transactions in both fiat and cryptocurrencies, showcasing Vanuatu's forward-thinking approach to digital currencies.


What types of operators are targeted by Vanuatu’s new licensing framework?


“The initial stage is aimed at B2C eGaming operators focused on pre-regulated markets,” said White, although he revealed that the framework allows for expansion in the future.


When asked what prompted the country to introduce a new online gambling licensing framework, White pointed out that the decision was rooted in their desire to provide growth opportunities for legitimate operators as well as the broader well-being of Vanuatu and its citizens.


He explained: “The primary goals of the Vanuatu Gaming Authority are to ensure the economic and social prosperity of Vanuatu and elevate it as the go-to jurisdiction for eGaming operators.”


He added: "The well-being of Vanuatu and its people is always the basis for any new changes to legislation, especially a framework as important as this. It was the ideal time for the jurisdiction to align itself with what was truly needed by the industry and to provide opportunities for its populace from the investment benefits and economic diversification that this avenue provides."


Why Vanuatu Has an Edge Over Other Jurisdictions


White also shared his insights on the unique advantages that Vanuatu offers as a jurisdiction for eGaming licensing.


Situated in the South Pacific, Vanuatu's geographical location plays a crucial role in its attractiveness to global eGaming operators.


Vanuatu’s strategic location provides a significant advantage. This country is perfectly positioned between major markets in Asia and Australia, making it easier for companies to operate across time zones. This geographical proximity not only facilitates efficient communication but also enhances business relationships, allowing gaming companies to reach a broader audience effectively.


What sets Vanuatu apart from other jurisdictions?


“The taxation is probably one of the main highlights: just a 1 percent Wagering Activity Tax charged on Gross Gaming Revenue, absolutely unbeatable,” replied White. 


From a taxation standpoint, Vanuatu’s low-tax environment is indeed a major selling point. Vanuatu does not impose corporate tax on companies, making it attractive for businesses looking to minimize tax liabilities. There is also no personal income tax in Vanuatu, which benefits shareholders and employees alike. Finally, there is no capital gains tax or estate duty, which further reduces the tax burden for both businesses and investors.


The absence of corporate tax, personal income tax, capital gains tax, and estate duty makes Vanuatu an attractive jurisdiction for international operators looking to minimize their tax burden. This favorable tax regime, combined with the low 1% Wagering Activity Tax, makes Vanuatu one of the most tax-efficient licensing options in the world.


How does Vanuatu’s licensing process compare to other jurisdictions currently available for online gambling?

The VGA CEO pointed out: “The primary difference is that Vanuatu aims to be a partner with these operators. A two-way street is what is needed for both the betterment of the jurisdiction and its people, and for incoming companies seeking further growth.


“Vanuatu’s licensing system has been optimized to ensure that no time is wasted in the setup process, or in the follow-through, and that all above-board operations will be fast-tracked into licenses.”


Moreover, White highlighted the benefits of Vanuatu’s regulatory environment. This adaptability ensures that Vanuatu remains competitive in the rapidly changing landscape of online gaming.


He remarked, “On the operational side, the jurisdiction is continuing to grow, and the government has made it a goal to increase revenue from this segment. Dialogue is open and succinct. Our goals can easily be matched with operators’ goals.“


Processes can be refined and any potential changes to legislation (if needed in future) can be debated and perfected, avoiding any type of ‘surprise’ implementation of measures.”


Costs and Timeframes: What Operators Need to Know


For operators considering obtaining a license in Vanuatu, White provided a clear breakdown of the costs and timelines involved. The application fee is EUR 5,000 (US$ 5,274), and the annual license fee is EUR 10,000 (US$ 10,550). In addition to these costs, operators must pay a 1% tax on GGR. The license allows for one URL, with additional domains available for EUR 1,500 (US$ 1,582) each.


According to the VGA, the application process for a Vanuatu gaming license typically takes one month, depending on the completeness of the application and the promptness of additional information requests.


"The costs related to the actual license have been held very reasonable, and the application process is designed to be quick and efficient," White stated, further emphasizing that Vanuatu’s system is designed to support businesses from the moment they apply for a license.


The VGA is committed to supporting legitimate operators as they establish and grow their businesses within the jurisdiction. Recognizing the busy nature of running a company, the VGA offers hands-on guidance and a streamlined process to ensure a smooth setup. As White puts it:


"The Vanuatu Gaming Authority is here to help these legitimate operators get themselves up and running and is there to guide them every step of the way.


“While we would love for every operator to get their feet in the sand and enjoy a stunning Vanuatu sunset, we know that not every CEO has the time for that, and that’s why we’re here to help. Through our comprehensive setup, we can provide what is needed to make sure that all complete application documentation is sent through, properly reviewed, and that all relevant feedback is immediate and properly treated.”


While other countries and regions are implementing restrictive changes that are limiting options for operators and driving many to seek alternatives, Vanuatu offers a welcoming and flexible solution.


“Other jurisdictions are undergoing changes, some of which are limiting these operators’ options and causing an exodus. An alternative is available and it’s right here, with us, in Vanuatu,” concludes White.


Vanuatu Updates Gambling Licensing Framework After 31 Years




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