Information concerning the initial application, licence conditions, modifications to or surrender of a licence, suspension, revocation and other sanctions relevant to eGambling licences is provided for in Part I of the eGambling Regulations, 2009 and can be found at:
OBJECT OF LICENCE
There are two categories of eGambling licence:
A category 1 licence authorises the organisation and preparation of gambling operations, namely the registration and verification of players, the contractual relationship with them, and the management of player funds.
A category 2 licence authorises the effecting of the gambling transaction including operational management of a gambling platform located within an approved hosting centre
Depending on their proposed operations, an organisation may apply for one or both types of licence.
LICENCE APPLICATION AND LAUNCHING PROCESSES
PHASE 1: LICENCE APPLICATION
Step 1: An applicant for a licence is required to form an Alderney registered company and publish a notice of application in the Alderney Gazette. The required form for this notice is set out in Schedule 1 of the regulations.
Step 2: The Alderney registered company submits an application to the AGCC. The application should consist of:
- A signed copy of the application form and any relevant supporting documentation
- Payment to the AGCC of the initial investigation deposit of £10,000,
Step 3: Following receipt of the application, the chief inspector will arrange a meeting with the applicant to facilitate a better understanding of:
- The business plan and proposed egambling operations;
- Potential business and executive associates, including third party software providers;
- The corporate entities involved in the application; and
- Persons who may need to submit applications for key individual certificates.
The Commission will then assess the application against the criteria provided for in Regulations 21 and 22 and will make their determination.
Where an application is successful, a licence will be issued on payment of the relevant licence fee.
PHASE 2: PREPARATION FOR LAUNCHING OPERATION
Before a licensee can go fully “live” or operational, there are several areas of operations which will need to be confirmed and approved. Essentially, the AGCC will need to approve:
- an internal control system
- gambling equipment
- the licensee’s capitalisation status
Step 1: Approval of Internal Control System (ICS)
An internal control system is the document which outlines all relevant internal procedures. In order to have this approved a licensee should:
- Read the relevant regulations 175-187
- Write the ICS document, following the ICS guidelines – these are on the AGCC website here. It is important that an ICS addresses each point in the guidelines.
- Fill in the “approval of an internal control system” application form here and send it to the AGCC with the required £10,000 deposit
- Submit the ICS document to the AGCC, via email, as a Word attachment. We will then review this and will advise where the ICS needs revisions or amendments.
The AGCC has prepared a pro-forma ICS template which licensees may find useful in preparing their ICS.
Approval of an ICS will be given once we are satisfied a system provides satisfactory, effective and comprehensive operational control.
Step 2: Approval of gambling equipment
This will apply to all the equipment which runs or supports games. All gambling equipment will need to be independently tested, although previous testing may be taken into consideration. In order to gain approval of gambling equipment a licensee should:
- Read the relevant regulations 200-215
- Fill in the “approval of gambling equipment” application form here and send it to the AGCC with the required £5,000 deposit
We will then review the scope of any testing required and will discuss with the licensee how this will be achieved.
We may also need to approve, via the granting of an associate certificate, any providers of core services such as games or gaming software.
Step 3. Capitalisation status
We will require documentary evidence of how the Alderney licensee company has been initially capitalised. Regulation 243 stipulates that the Alderney company must be adequately financed at all times to satisfy the following three ratios:
- Cash must always exceed player balances
- Current assets must always exceed current liabilities
- Total assets must always exceed total liabilities by at least 25%
Step 4: The Commission issues a letter of approval to the licensee to commence commercial operations.
All application forms can be downloaded from the forms section of this website.