Implementation of a simplified licensing process for online gambling in Vanuatu

The isle realm of Vanuatu, situated in the South Pacific with its breathtaking shores and singular culture, has proclaimed the initiation of a novel licensing schema for virtual gaming. The aim of the innovation is to ease the process of bestowing licenses upon ventures desiring to function in the domain of virtual casinos. As per the Vanuatu Financial Services Commission (VFSC), the emergent regulatory framework aspires to cultivate a transparent and vibrant milieu that will assist in attracting new investors while safeguarding the interests of all stakeholders in the market. The transformation is anticipated to fortify Vanuatu's stature as one of the vanguards in the digital amusement sector and contribute to the nation’s economic resurgence.

Review of the new online gambling licensing system in Vanuatu

Vanuatu has embarked on resolute measures to revamp its virtual gaming sector by instituting a refreshed licensing schema. The aims of this novelty are to streamline procedures and augment the efficacy of oversight of operations in this domain. A pivotal role in the execution and scrutiny of the novel system is undertaken by the Vanuatu Financial Services Commission (VFSC), which is tasked not merely with conferring licenses, but also with upholding adherence to all stipulations and norms, in addition to addressing grievances and adjudicating conflicts, thereby fostering equity and lucidity in the gaming praxis.

The principal attributes of the novel licensing system encompass the ensuing novelties:

• Digitization of the petition procedure. The novel mechanism permits you to present petitions and requisite documents via a bespoke digital gateway. This feature substantially streamlines engagement with the overseer, particularly for non-native firms, obviating numerous bureaucratic impediments and curtailing the duration for processing petitions.
• Cost and duration of license. Introducing a standard license fee of €5,000 and a 15-year validity period provides operators with long-term planning and financial stability. This differs significantly from conditions in other jurisdictions, where licensing periods are often limited to 1-5 years.
• Regular licensing fees and taxes. Operators are required to pay a fee of €10,000 annually, as well as a tax of 1% of gross gaming revenue (GGR). This relatively low tax rate makes Vanuatu one of the most attractive jurisdictions for gambling on the international stage.

These changes aim to create a more transparent and effective regulatory environment, making Vanuatu an attractive place for international gaming companies to do business. A simplified and accessible licensing process, coupled with long license terms and a competitive tax rate, is expected to stimulate the country's economic growth by attracting new investment, creating jobs and increasing government revenue through fees and taxes.

Introduction of a new online gambling licensing system in Vanuatu serves as a shining example of how government can adapt to changes in the global economic environment by providing innovative and effective solutions to regulate fast-growing industries. This not only strengthens Vanuatu's reputation as a jurisdiction open to international business, but also contributes to the sustainable development of its national economy.

Reasons for introducing a new online gambling licensing system in Vanuatu

Resolution Vanuatu regarding the metamorphosis to an elucidated licensure schema for virtual wagering addresses an array of contemporary economic and technological conundrums. This statutory revision is propelled by the necessity to acclimate to the swiftly evolving digital milieu and the mondialization of the betting industry, which necessitates a progressive and malleable regulatory structure. As of 2024, the magnitude of the global virtual wagering sector is approximated at US$102.97 billion, with anticipated expansion to US$127.3 billion by 2027, rendering the inception of an overhauled licensure mechanism particularly pertinent.

Revised licensing regime in Vanuatu, distinguished by lucidity and straightforwardness, is crafted to streamline the procedure of engagement with global enterprises and fortify the juridical infrastructure that guarantees equitable conduct and safeguarding of participant entitlements. In 2023, the nation enticed approximately 17 novel operators in the domain of digital wagering, which constituted an augmentation of 28% relative to the antecedent year.

The secondary principal inducement is the aspiration to captivate exogenous capital. Vanuatu perceives the revised apparatus as an efficacious instrument to allure capital in the burgeoning virtual gaming sector, which by 2024 has burgeoned by 15%, metamorphosing into a consequential revenue stream, comprising 2.5% of the nation’s GDP. It is envisaged that this datum will augment to 4% in the ensuing quintet of years.

In addition, the country strives to comply with increasingly stringent international regulations aimed at minimizing the social risks of gambling. The adoption of clear and fair licensing rules will enable Vanuatu to effectively integrate into the global regulatory system and enhance its reputation as a responsible gaming jurisdiction. In 2023, Vanuatu took 7th place among the top gaming jurisdictions in Oceania, and the new regulation should help further improve the ranking.

It is also planned to develop the internal digital and communication infrastructure, which will stimulate the growth of related industries and create new jobs, increasing the number of jobs in the IT sector by 12% in 2023, with a forecast for further growth to 20% by 2025. This also helps to increase the technological literacy of the population, which by 2024 is 38% of the total number.

The introduction of a simplified licensing system will strengthen Vanuatu's position on the world stage, allowing it to compete with leading gaming jurisdictions and attracting international companies to do business on the islands.

Comparative overview of the online gambling licensing system in Vanuatu and other jurisdictions

A comparative disquisition of the Vanuatu, Curacao, and Malta licensing schemas elucidates marked divergences and congruencies of paramount significance for enterprises engaged in the online wagering sector. Vanuatu proffers one of the most economical alternatives with a €5,000 licensing fee and €10,000 annual charge, rendering the jurisdiction alluring to a diverse array of operators. This stands in stark contrast to Curacao’s framework, wherein a singular license encompasses all gambling modalities at an annual expenditure of approximately €25,000, and Malta’s scheme, which comprises four categories of licenses with disparate costs and specializations, potentially ascending to €35,000 annually.

In terms of license duration, Vanuatu also stands out from its peers by offering 15-year licenses, significantly longer than the standard 1 to 5 year terms offered by Curacao and Malta. This provides operators with greater stability and long-term planning.

Vanuatu's tax policy also benefits from a low rate of 1% of gross gaming income, while Curacao taxes at 2% of net income and Malta up to 5%, depending on the license type. These conditions make Vanuatu particularly attractive to operators seeking to minimize tax deductions.

The regulatory frameworks of all three domains endeavor to guarantee equitable and pellucid gaming encounters, albeit Malta and Curaçao are distinguished for their notably rigorous directives and elevated benchmarks of data safeguarding and participant security.

Offering competitive cost and taxation terms and long-term licenses, Vanuatu therefore represents an attractive alternative to more traditional gaming jurisdictions such as Curacao and Malta. This makes Vanuatu an attractive choice for operators looking to maximize their profits and ensure the long-term sustainability of their business on the international stage.

Summing up

Implementation of a new online gambling licensing system in Vanuatu opens up significant prospects for the country's economic growth. This initiative will not only increase government revenue through licensing fees and taxes, but also help fund social programs and infrastructure development. In addition, attracting foreign investment in the gambling industry is expected to stimulate the creation of new jobs, especially in the areas of information technology and customer service, which will help reduce unemployment and improve the overall standard of living.

Vanuatu's positioning as a leading online gambling jurisdiction, alongside Malta and Curacao, strengthens the country's image as an attractive destination for international operators seeking a stable and long-term regulatory environment. This, in turn, contributes to an increase in the number of registered gaming companies, which strengthens Vanuatu's reputation as a reliable and innovative gaming hub.

Consulting company YB CASE plays a key role in facilitating the licensing process for foreign investors by providing a wide range of services, from filing documents to obtaining a license. This not only makes it easier for new players to enter the market, but also helps maintain high standards of transparency and fairness in the Vanuatu gaming industry. YB CASE ensures that all processes comply with national legislation, providing reliable support at every stage.