Are you considering an Anjouan Gambling Licence? Read this first.
The Dutch-Caribbean island of Curacao has been talked about a lot in the eGaming industry in recent times, mainly due to the upcoming changes to its online gambling licensing regime. Imminent increases in regulatory requirements have unsettled many operators currently holding a sub-licence in the country and countless firms have started the search for “the next Curacao” as a result. On this quest, a fair few seem to have comes across another small island, called Anjouan. Before you now get your cheque book out and prepare to update your company address, it’s probably worth having a closer look at this little-known jurisdiction and its alternatives.
One of the three major islands that make up the Union of the Comoros , few people had heard of Anjouan before the small island nation decided to try and cash in on Curacao’s troubles. Currently advertising itself as being the latest no frills licensing solution, the temptation to move there must be strong for some, but the apparent low pricing and one-fee-covers-all model comes with some serious caveats. For starters, political stability is anything but guaranteed on an archipelago that has seen more than twenty coups or attempted coups since independence from France in the 1970s. Human rights issues such as restrictions on freedom of movement, press, and religion should also worry anyone thinking of doing business there, as should the fact that Comoros ranked 167th among the 180 countries on Transparency International's 2022 Corruption Perceptions Index.
Anyone willing to ignore all these aspects in the search of a quick and cheap licence should keep in mind that the document on your office wall is just one piece of a huge and ever stricter regulatory puzzle. The hard truth is that it doesn’t matter what places like Curacao, Anjouan, or Kahnawake see and sell themselves as if the wider business world doesn’t agree with them. Ultimately, these jurisdictions of convenience are subject to the same underlying rules and restrictions that anyone who handles any money these days must adhere to. Many of these rules aren’t even eGaming related but come from the world of AML, CFT, and general compliance. If your suppliers including PSPs, banks and game providers weren’t fully comfortable with Curacao, the chances they will warm up to Anjouan any time soon are virtually zero.
Which is where so-called Tier 1 jurisdictions come into play. These highly trusted business centres can provide a stable foundation for any online gambling business. Higher costs for the initial setup and licensing process are quickly offset by lower long-term expenditure thanks to better access to things like banking and more favourable terms with everyone from payment service providers to games suppliers. And that’s before we even look at the reputational side of things. The hard truth is that our industry is inevitably moving towards more and more regulation. Sooner or later, you may find yourself wanting to apply for one of the growing number of national gambling licences. Being able to show a willingness to comply with Tier 1 operating rules and having a track record of operating to a high regulatory standard might just make all the difference when it comes to demonstrating to a government that your company is the right partner.
领英推荐
It will come as no surprise to you that the jurisdiction of choice for me is the Isle of Man, and has been for many years. I first arrived here 23 years ago this month, and I've spent almost as long as that in the online gambling industry. I have yet to see another country that can match the Isle of Man in political stability, business friendliness, and forward-thinking gambling regulations. With just one licence to cover all verticals and currencies (including crypto), doing the right thing and placing your online casino or sportsbook here is not only the logical thing to do but also easier and cheaper than you may think. How easy and cheap? Contact me to find out and lay the foundation for sustainable business success.
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The problem with Curacao is that you do not get stable banking or payment solutions. It is impossible to bank a Curacao company and if you do find a banking/psp partner you pay through your nose. The pressure comes from EU based banking regulators who essentially want to protect EU business and they are not going to change their minds because Curacao has voted on new regulations and upped their fees. So by increasing the costs 10 fold, and putting more pressure on local CSPs through legislation, small to medium sized operators are going to feel the squeeze. The problem Curacao faces is that it exists by virtue of startups built on a wing and a prayer. Often a sole operator wearing multiple caps with a unique gaming concept. The extra 55K EUR they now need to pay each year is earmarked for CSPs, infrastructure, and a pittance. My understanding is that the plan is to push out the smaller operators and this is working. Many have left or are leaving or will leave. There are choices and Anjuan is definitely one of them and it will appeal to the startup. But there are other options just around the corner which will break the likes of Malta and Curacao in the very near future.
Advogado e Mestre em Direito.
9 个月Concise and straight to the point. Thanks for sharing.
Finance Assistant at MannBenham Advocates Limited
1 年Thanks for sharing
Group Commercial Director | Supporting eGaming B2Bs & B2Cs in the Isle of Man
1 年A really useful insight Frank Schuengel, raising some extremely valid points, thanks!