An Alderney gambling license is one of the best in the iGaming industry. This licensing authority is recognized for its high standards, relatively low costs, and straightforward licensing structure. It is highly respected around the world and the solid reputation associated with this license could help you to find long-term success with your online gambling business.
The Alderney Gambling Control Commission (AGCC) is the regulatory body behind this license. It was established in 2000 and has continuously maintained regulations, ensuring that the AGCC license is always in line with the ever-changing global gambling industry.
Alderney is one of the inhabited Channel Islands a part of the Bailiwick of Guernsey, which is a British Crown dependency. The small island, and third largest of the Channel Islands, is located in the English Channel, south of England and not far from the north-west coast of France.
Alderney has its own political and legislative system. It benefits from the same modern telecommunication networks and hosting facilities as Guernsey, and Bailiwick of Guernsey is responsible for the Channel Island’s tax and financial framework. Although Alderney is part of the British Crown, the Alderney Gambling Control Commission is fully independent from the UK Gambling Commission, which regulates iGaming licenses in Great Britain.
There is more than one Alderney license and each has its own rules and fees. That being said, its gaming licenses cover all betting activities, including casino, poker sportsbook and lottery games. Another notable feature about this jurisdiction is that it provides iGaming operators with the option of creating a mirrored site. What this means is that you can set up a mirrored site from within Alderney, without having to have an office on the island, while continuing to run the main site elsewhere.
Other reasons operators tend to favour an Alderney gaming license is its reasonable fees, extensive regulations, no corporate taxes, no gaming duties, and no value-added tax (VAT). It is a pro online gambling environment that is highly friendly, secure, and welcoming to iGaming businesses. In our Alderney gambling license review, we’ll give you insight into how to obtain an AGCC license, costs, and other valuable info.
Alderney License Fast Facts
- First gambling license issued – 2000
- Regulator – Alderney Gambling Control Commission
- License provider – Alderney Gambling Control Commission
- Number of license types – 2
- Approximate license costs – £17,500 – £35,000+
- Average time to obtain license – 1 – 12+ months
- License validity period – 1 year
Types of Licenses – What Licenses Does Alderney Offer?
There are two main categories of iGaming licenses in Alderney offered by the Alderney Gambling Control Commission. The activity of your business determines the type of license you need.
- Category 1 License (B2C) – This license is for companies operating within Alderney and “authorizes the organization and preparation of online gambling operations”. It covers every part of player management, including the registration and verification of players, the contractual relationship with players, and managing player funds. In essence, it allows an operation to directly communicate and enter into contracts with customers.
Category 1 Associate Certificate – This certificate is similar to the Category 1 license. It allows foreign-based businesses (those based outside of the Bailiwick of Guernsey) to operate an online gambling business, covering every part of player management. However, there is no requirement for the business to apply through an Alderney company or host their gambling equipment in the jurisdiction. - Category 2 License (B2B) – This license is for gaming platforms operating within Alderney. It covers every part of “effecting the gambling transaction”. This includes operational management of a gambling platform that has been established in an approved hosting centre. This license makes it possible for an operator to provide games and betting activities on their site. However, if an operation holds only a Category 2 license, they will not be able to contact players directly.
Category 2 Associate Certificate – Like the Category 1 Associate Certificate, this certificate allows foreign-based businesses to operate a gambling platform that is located outside of the Bailiwick of Guernsey.
Essentially, the AGCC licenses separate the two distinct functions of iGaming:
- Category 1 license: Managing, communicating and entering contracts with players
- Category 2 license: Providing games and betting activities
After players have completed registration at a category 1 AGCC licensed gambling business, that business can then offer these players activities from either a Category 2 licensed platform (their own or a platform in Alderney or a foreign-based platform) or any other platform that has been licensed by a respected authority. As an operator, you are free to build up your own portfolio of gambling games and activities. Therefore, depending on your proposed operation, you may choose to apply for one or both types of Alderney licenses.
In addition to the above two license categories, Alderney also offers a Temporary eGambling License. This license allows the holder the benefits of both Category 1 and Category 2 licensees, but only for a limited time period of either a consecutive 29-day period or an aggregate of 59 days total. This temporary license is valid only for six months and must be used within this period. Moreover, the AGCC requires the temporary licence holder to apply for a full eGambling license within 42 days from the day after completing the 29-day consecutive period or the day after the 59-day aggregated period.
The AGCC license covers all forms of gambling activity, including:
- Casino games (slots, table games, etc.)
- Sports betting
- Poker
- Bingo
- Lotto
With the exception of the temporary license, an Alderney gaming license is valid of one year.
The License Process – How Do I Get an Alderney Gambling License?
There are several stages to the Alderney license process. The following are the different steps for applying for a Category 1 or Category 2 license from the AGCC. The details in these steps have been provided to help you understand what information is needed and the process involved so you will be better prepared should you decide that obtaining this license is the right choice for your iGaming operation*.
Requirements for obtaining a license
Step 1 – Register a company in Alderney
If you are applying for a Category 1 or 2 License, you will need to register a company in Alderney and publish a notice of application in the Alderney Gazette.
Step 2 – Submit an application
Once you have a company registered in Alderney, you then submit an application to the Alderney Gambling Control Commission. This application should include the following:
- A signed copy of the application form
- Any relevant supporting documentation**
- Payment to the AGCC for the initial investigation deposit (£10,000)
Step 3 – Meeting with the Director, Regulatory Operations
After the application has been received, the next step will be to meet with the Director, Regulatory Operations, who will arrange this meeting to gain a better understanding of your operation, including:
- Your business plan
- Your proposed iGaming operations
- All potential business and executive associates. This includes third party software providers
- All corporate entities involved in the license application
- All persons who may be required to submit an application for key individual certificates
The application will then be assessed against the information provided and the regulator will make their determination to grant a license.
Step 4 – Obtain the license
If the application is successful, your business will receive a license once you’ve paid the relevant Category 1or Category 2 license fee. This application can be approved and issued in as little as four weeks, but could also take far longer (6 – 12+ months). The speed at which you receive it is highly dependent on ensuring you have provided all relevant documentation and how quickly you respond to due diligence information requests during the investigation process.
Step 5 – Internal control system approval
Even if you have been granted a license, this license is not considered “live” (operational) until other areas of operation are confirmed and approved by the AGCC, starting with the approval of internal control systems (ICS). To receive ICS approval, you must:
- Read the relevant rules that apply
- Write the ICS document following the appropriate guidelines provided by the AGCC
- Fill in the “approval of an internal control system” application form and send the form to the AGCC with the required deposit (£10,000)
- Submit the ICS document for the AGCC to review for approval
Approval is given once the AGCC is satisfied that your system delivers satisfactory operation control that is both effective and comprehensive.
Step 6 – Gambling equipment approval
This applies to all equipment that runs or supports the games you offer. All gambling equipment that is used is required to be independently tested. To receive gambling equipment approval, you must:
- Read the relevant rules that apply
- Fill out the “approval of gambling equipment” application form and send it to the AGCC with the required deposit (£5,000)
The regulator will then review any testing that is required and inform you how to satisfy testing requirement. The AGCC may also need to approve any providers or core services (e.g. gaming software or games).
Step 7 – Status of capitalization
The AGCC will need documentation that provides evidence of the initial capital you used to start your business. As a licensee, your company must always be sufficiently financed to satisfy the following:
- Company cash must exceed player balances
- Current assets are required to be higher than current liabilities
- Total assets are required to always be greater than total liabilities by a minimum of 25%
Step 8 – Commencing of operations
A letter of approval from the Alderney Gambling Control Commission with be issued to you so that you can legally begin commercial operations.
Keep in mind, completing each step of the licensing process as required is vital if you want to avoid mistakes that could lead to your application being rejected or that could prevent your operation from going “live”. Rejections result in loss of money, delays, and the frustration of having to go through the process again.
*Note: The above information is related to Category 1 and Category 2 licenses for iGaming companies operating within Alderney. It is meant to provide a general understanding of the complexity of the overall AGCC licensing process. Those applying for a temporary license or associate certificates undergo a different application process.
License Costs – How Much Does an Alderney License Cost?
As is the case with all fees associated with online gambling licenses from any of the world’s regulatory bodies, Alderney gaming license cost is determined by different factors.
The following table shows a general breakdown of fees associated with an Alderney license***:
To sum up overall fees, the initial Alderney Category 1 License varies from £17,500 – £35,000, and its renewal can cost anywhere from £35,000 – £400,000 annually. The initial Alderney Category 2 License varies from £17,500 – £35,000, and its renewal can cost anywhere from £35,000 – £50,000.
***Note: Please be advised that all fees listed are for informational purposes only to give you an idea of overall cost. It does not include all fees for ever possible licensing scenario. Prices and fees can vary and are subject to change.
Licensee Regulations – What Rules Am I required to Follow?
As an AGCC licensee it is your responsibility to stay up-to-date and compliant with all the latest rules and regulations that apply to the license(s) you hold. Examples of some of these regulations include (but are certainly not limited to):
- Games and software compliance
- Following the laws of the target market’s jurisdiction
- Anti-money laundering protocols
- Prevention of any criminal activity
- Providing players with a secure and responsible gambling environment
Maintaining the high standards set by this authority is a must to prevent penalties (e.g. paying fines, losing your license, etc.), or even closure of your business.
In what regions does this license allow me to operate?
An eGambling license from the AGCC can be used by operator licensees in any country where online gambling is legal. This allows you to accept players from many countries across the globe.
That being said, it is important to note that in certain countries where iGaming is legal, a licensee may also be required to obtain a local license issued by that specific jurisdiction in order to access that market and advertise to players within it. Examples of countries where an additional license may be required include (but is not limited to):
- UK
- Sweden
- Denmark
- Spain
- Romania
It’s always a good idea to check what online gambling regulation laws apply to the markets you intend to target.
License Pros and Cons – Is an Alderney License Right for Me?
Although there are many benefits to having an Alderney eGambling license, there are some less desirable features as well. Knowing the pros and cons associated with this online gambling regulatory body can help you to decide if this jurisdiction is a smart fit for your online casino, sportsbook or other gambling business.
Alderney gaming license advantages
- No taxes – There is no corporate tax, no VAT, no gaming duties, or any other taxes. This makes the license highly cost-effective.
- One license covers all gambling activities – The simple licensing process is easy to understand and no matter if you seek a Category 1 or 2 license, all gambling activities (e.g. casino, sports betting, bingo, lotto, etc.) are covered.
- Straightforward regulation compliance – Your business only needs to comply with the regulations that are relevant to your operation.
- Worldwide respect and recognition – An Alderney license comes with prestige and a good reputation. In addition to players having confidence and trust in your brand, payment providers, software companies, game developers and other potential iGaming partners are more likely to be open to cooperating with you as an AGCC licensee.
Alderney gaming license drawbacks
- High initial licensing costs – Although not the highest costs in the industry, an Alderney license doesn’t come cheap, which can make it a tough sell for startups with limited capital. Moreover, you may need to apply for both category 1 and 2 licenses, which leads to more expense.
- Application processing times vary – While it is possible to obtain a license in as little as four weeks, to ensure this, a company needs to make certain they have provided all requested documentation perfectly, otherwise it can take months to be issued a license. Additionally, once you’ve been issued a license, this doesn’t mean your company has been given the green light to operate. There are still more steps that need to be completed before you are permitted to go live, which takes even more time.
Alderney Gambling License FAQ
The Alderney gambling license cost is £17,500 for the initial Category 1 License and £35,000 – £400,000 each year after (price depends on Net Gaming Yield), and £35,000 for the first year for a Category 1 Associate Certificate and £50,000 – £400,000 each year after (price depends on NGY). It costs £17,500 for the initial Category 2 License and £35,000 for every year after, and £35,000 for a Category 2 Associate Certificate and £50,000 for each year after.
It can take as little as four weeks up to a year or more. It all depends on whether or not you provide the correct necessary documentation as requested and how quickly it takes you to comply with the due diligence process.
The activity of your business determines the kind of licence you need. That said, the two categories of licenses cover two different aspects of gambling. Both parts need to be fulfilled in order to run an operation. This means you may need to apply for both types, or apply for a Category 1 license if you have already fulfilled the licensed platform requirements in another jurisdiction.
There are many advantages to obtaining an Alderney gaming license, such a license that covers all forms of gabling activities, no tax, mirror site option, ability to obtain a temporary license, and holding a license from a respected regulatory body known for compliance testing and responsible advertising.
Although you may not specifically need an Alderney license, it is important to license your iGaming operation. The money you save in the short-term for not obtaining a license won’t be worth the inevitable consequences (e.g. fines, criminal charges, bankruptcy, or even prison time) that will end up costing you far more in the long run than if you were to pay for license fees.
How Can Casinnovate Help Me Get a Alderney License?
We highly recommend that if you are interested in obtaining an Alderney gambling license that you obtain professional assistance from experts who have experience in working with and obtaining licenses from the Alderney Gambling Control Commission.
Casinnovate can put you in touch with reputable professionals who are experts in this field. Many online gambling software solutions providers, such as those we’ve reviewed, are equipped with the knowledge and expertise to help you navigate the licensing process in Alderney. Examples of some of the experts we recommend include:
2WinPower
Have more questions about an Alderney gaming license or want to know more about how we can help you achieve your online casino and/or online sports betting business goals? Get in touch today!
