Vanuatu Online Gaming License: A Comprehensive Guide

Vanuatu, an island nation located in the South Pacific Ocean, is known for its tropical climate, beautiful landscapes, and a population spread across 83 islands. With a growing economy and a legal framework that encourages international investment, Vanuatu has become an attractive destination for businesses seeking favorable conditions for growth. This is particularly true for online gaming operators, as the nation’s revised licensing system and tax benefits provide significant advantages.

Vanuatu is emerging as a popular jurisdiction for online gaming operators due to its straightforward licensing process, business-friendly tax regime, and robust regulatory framework.

This guide provides an in-depth overview of Vanuatu’s online gaming licensing structure, including key requirements, processes, and associated costs. It is designed to assist independent professional services firms in guiding their clients on obtaining a Vanuatu online gaming license in collaboration with Ocean Communications Ltd. (OCL).

1. Vanuatu as a Strategic Online Gaming Hub

Stable Political and Economic Environment

Vanuatu offers a stable political climate and a growing economy, making it an appealing destination for online gaming operators. The Department of Inland Revenue in convert with the Vanuatu Gaming Authority has developed a legal and regulatory framework that supports the growth of the online gaming sector.

Favorable Tax Regime

Vanuatu boasts a highly competitive tax environment. Online gaming operators benefit from zero corporate taxes, no VAT, and no capital gains taxes, creating an attractive fiscal environment for businesses seeking to maximize profits.

Global Market Access

With its location in the Pacific and a flexible regulatory regime, Vanuatu provides online gaming operators with access to a global market, including Asia and parts of Europe.

Crypto-Friendly Environment

Vanuatu is actively working on new legislative changes that aim to position the country as a highly crypto-friendly jurisdiction. These anticipated regulations will facilitate the use of cryptocurrencies in online gaming and other financial services, making it more accessible for operators and users who favor digital assets.

2. Vanuatu Online Gaming License Types

B2C (Business-to-Consumer) License

This license allows operators to offer gaming services directly to players. Services covered include online casinos, sports betting, poker, and other gambling activities. A B2C license encompasses all consumer-facing activities.

B2B (Business-to-Business) License

This license caters to service providers offering software, platforms, or payment solutions to B2C operators. B2B license holders can serve licensed gaming companies across multiple jurisdictions.

3. Key License Requirements

Corporate and Substance Requirements

A Vanuatu gaming license holder must establish a locally incorporated company. The licensee must have at least one Vanuatu-resident director who oversees the operations.

The OCL Team will coordinate the company setup with the Vanuatu Gaming Authority (VGA).

Financial Requirements

Applicants must provide proof of sufficient capital to support their gaming operations. While minimum capital requirements depend on the size and scope of the business, demonstrating financial sustainability is essential.

Technical Requirements

Operators are required to have a fully functional gaming platform, including secure payment gateways, encrypted data protection, and servers capable of handling traffic. Compliance with technical security standards is mandatory.

Compliance and Regulatory Requirements

Vanuatu places strong emphasis on responsible gaming, anti-money laundering (AML) measures, and player protection. Operators must comply with local and international standards on KYC (Know Your Customer) processes and reporting suspicious activities.

4. Application Process and Timeline

The process of applying for a Vanuatu online gaming license involves:

Application Submission

Submit all required documents, including business plans, financial statements, and technical specifications, outlined in the OCL Vanuatu Gaming License and Company Formation Guide.

Review and Due Diligence

OCL will conduct a thorough review of the application, including background checks on the directors and key stakeholders, verification of the company’s financial health, and assessment of its technical capacity.

License Issuance

Upon successful review, the gaming license will be granted. The application process typically takes between 4 to 6 weeks, depending on the complexity of the application.

5. Fees and Associated Costs

Corporate Setup

The initial fee to setup a Vanuatu company with a resident Managing Director for the first year is EUR 6,500. Annual renewal fees are approximately EUR 3,700.

License Fee

The initial application fee is EUR 5,000 and EUR 10,000 for the first year. Annual renewal fees are EUR 10,000, ensuring an affordable entry and maintenance cost for operators.

Operators are required to pay 1% of Gross Gaming Revenue (GGR) on a monthly basis.

GGR is the total amount of money wagered by players minus the total payouts to players plus bonuses. It represents the operator's revenue before any deductions.

GGR = Bets − (Payouts + Bonuses)

Additional Costs

There may be additional costs for registering new domain names or amending the license to accommodate changes such as updating directors or beneficial owners.

Conclusion

Vanuatu’s online gaming license provides a cost-effective solution for operators seeking to enter the global online gaming market. Its favorable tax structure, efficient licensing process, and strategic location make it an appealing choice for businesses looking to expand. By securing a Vanuatu license, operators can position themselves to tap into growing markets in Asia and beyond. We are here to assist you through the licensing process and ensure compliance with all legal requirements.