If you want to move your virtual casino and do not know which jurisdiction to apply for a license permit, then follow our recommendations. In our opinion, the Jersey gambling license is one of the most convenient and best in the world. Next, we will tell you about everything that can be useful to you in this matter.
What is Jersey? Location
Many people confuse Jersey with one of the US states – New Jersey. However, Jersey is not a state, but a territory controlled by the British Crown, which is located near the coast of France. It is one of the Channel Islands, so Jersey is not actually part of the United Kingdom. The economy of this territory is largely dependent on the financial services industry, which is flourishing and developing very quickly. Jersey is also known as one of the most reliable and profitable offshore centers. This territory does not include VAT and assigns the rate for corporate tax at 0%.
Legislative background of online gambling in Jersey
January 2015 distinguished itself by the fact that at this time Jersey issued the first official license to conduct online gaming activities to the provider Twelve40. There was a provision in this license that the provider must manage any risks that arise during the game. The Territory Gambling Commission ensures that suppliers are properly applying for authorization and that their activities meet all relevant requirements.
Terms
- Term of establishment of the company and obtaining of the license – approximately 3 month.
- Term of the license – 5 years (renewable on the annual basis).
Types of games
- The Jersey Gambling Commission (JGC) describes the various ways in which types of gambling (and so types of service and license) can be distinguished from each other under polices and standard license conditions.
- In relation to remote gambling this policy makes no distinction between betting, gaming and lotteries and combinations and subdivisions of those (or of other forms), such as pool betting, spread betting, games of mixed chance and skill, or games of equal or unequal chance.
- A remote gambling operator’s license covers all permutations of gambling: there are no separate bespoke licenses for gaming or betting, or hybrids of either activity.
- However, the individual parts of a conglomerate gambling offering (e.g. bingo, slots, sportsbook, bankers (casino) games) are subject to separate scrutiny, approval, testing etc. A Jersey licensed operator wishing to add a gambling game to their License will need to prove the compliance of that game with the JGC minimum standards and any major alteration must first be reported to the JGC for approval.
Company structure
- The minimum number of shareholders is normally two. Legal persons may also act as shareholders.
- At least one director.
- There are no strict requirements provided in the law on the nationality, residence, special qualifications or experience of shareholders and director, but according to the position of JGC, it is preferable to have some.
Taxation
- Jersey offers a low tax environment, providing tax certainty and allowing for fiscally efficient cross-border investment, with no tax leakage:
– No Capital Transfer Tax
– No Capital Gains Tax
– No Value Added Tax (“VAT”)
– No Withholding Taxes
– No Stamp Duty on trading company share transfers
– No Wealth Taxes
- 2.Jersey’s position on UK VAT is a key advantage for Jersey over other jurisdictions. No VAT is chargeable on exports to Jersey and such exports can include the provision of professional advice and services to a Jersey entity including the costs of the production of marketing/advertising material in respect of promotions.
Annual license fee
- 1.Licensees whose annual gross gaming revenue (GGR) is below £1,000,000:
£15,000 per annum.
- Licensees whose annual GGR is above £1,000,000:
£35,000 per annum.
Legal and technical requirements
- Accounting requirements – Required.
Submission of annual financial statements is required.
- Audit –Required.
The company shall appoint one or more qualified and experienced external auditors for its accounts for every financial year. Prior written approval by the JGC will be required before appointing an auditor.
- Registered office/agent –Required.
To operate remote gambling from Jersey it is necessary to incorporate in the Island. Companies established in other jurisdictions wishing to relocate to Jersey or have a Jersey arm to their business must firstly apply to the JGC for the license.
- Company secretary – Required.
A company secretary is required who can be a natural person or body corporate. Can be of any nationality and need not be resident in Jersey.
- Compliance officer – Required.
Compliance officer must have appropriate independence and direct access to the registered person’s Jersey board of directors or equivalent; be based in Jersey and can be outsourced.
- Local server – Required.
Domestic legislation does not require a company to move wholesale to Jersey, but it must genuinely operate gambling from a server based in the Island.
- Age Verification of players – Required.
Licensees are required to report on the number of people asked to provide proof of their age. This means any all persons challenged to provide satisfactory identification documents. The JGC also requires a record of those persons challenged who were unable to produce any matter to verify their age.
- Cryptocurrency – Not prohibited.
There is no prohibition to online gambling licenses operators to use cryptocurrency in their business models, but the term and costs incurred may increase, due to the fact that the JGС will make more efforts to test whether proposed business model is reliable and fair.
Steps to obtain a license
In order to obtain the license, applicant must submit such documents and data to the JGC:
- Business plan.
Before submitting a completed application to the JGC, an operator should first supply the outline of proposed business model. The JGC will then advise the operator whether the proposal suits the form of the license, they were initially considering pursuing.
- Complete application form.
The full application to the JGC should contain the following documentation:
– The corporate application form.
– The corporate waiver.
– Personal waivers for those persons submitting personal declarations.
– The application fee of £6,000 (cheque made out to the JGC).
– Police Vetting Unit. Declarations for all key officials e.g. directors, shareholders, Designated Officials, Operations Managers:
- Personal declaration form for any of the positions listed above.
- Details of all shareholders of the applicant company with holdings above 5% and any shareholders of the ultimate parent company and any companies in between with holdings above 5%.
- Financial information.
The applicant is expected to submit financial information covering:
– Plans for future funding to include the values and source(s) of operating/start up capital.
– Forecast profit and loss for the first 3 years of trading, broken down by month for the first 2 years and an annual figure for the 3rd year.
– Forecast monthly cash flow for the first 3 years of trading.
– Forecast balance sheet for the first 3 years of trading.
– Terms and origin of any investment and loans (including shareholder loans).
– The level of business that needs to be maintained and achieved to break even.
– Information to support all financial assumptions such as traffic volumes, player spend, cost projections, player acquisition and retention costs, return on marketing spend, relocation, etc.
- Inspection of the hardware and software.
A Code of Practice regarding Minimum Standards for remote gambling operators is available on the JGC website, and applicants should undertake a comparative exercise to assess whether the proposed business functions meet these minimum requirements.
- Hearing.
Technical, corporate, individual due diligence culminates in a report to inform the JGC during a licensing hearing. The members of JGC will require the attendance of some key personnel, generally to discuss points of the application and the imposition of any supplementary license conditions.
Eternity Law International will provide you with expert advice on obtaining a gambling license in a suitable jurisdiction. If you have any questions or need advice on obtaining a gambling license, call us at the phones indicated on the site, or write to CRM form, our specialists will answer you online.