Information concerning the initial application, licence conditions, modifications to and surrender of licence, suspension, revocation and other sanctions relevant to a temporary egambling licence is set out in Chapter 4 of Part I of the eGambling Regulations, 2009 and can be found here.
OBJECT OF LICENCE
A temporary egambling licence is considered to have the same obligations and privileges as a full egambling licence, except as specified by law or regulation, and as specifically exempted by the Commission.
A temporary egambling licence permits the holder thereof to conduct a gambling transaction (a transaction involving any form of betting, gaming and wagering, and participation in any lottery) under the following limited circumstances:
- It must notify the commission of activation of the licence no later than one hour after commencing operations thereunder;
- It must notify the commission of the termination of its use of the licence no later than one hour after terminating its operations thereunder;
- It may use the licence no greater than
• 29 days continuously, or
• for an aggregate of 59 total days of use within any six month period.
- Upon the 30th day of continuous use, or upon the 60th day of aggregated use within any six month period, the Commission will require the licensee to apply for a full egambling licence within 42 days.
- It must pay a licence fee of £10,000 per calendar year.
LICENCE APPLICATION AND LAUNCHING PROCESSES
PHASE 1: LICENCE APPLICATION
Step 1: The applicant should file an application consisting of the following:
- A completed and signed copy of the application form here
- An initial investigation deposit of £5,000.
Step 2: Following receipt of the application, the chief inspector will arrange a meeting with the applicant company to facilitate a better understanding of:
- The business plan, with discussion about the potential use of the temporary licence;
- Potential business and executive associates, including third party software providers;
- The corporate entities involved in the application;
Step 3: Assessment of the application against the criteria provided for in Regulations 20 to 24.
Step 4: Determination of the application by the Commission.
Step 5: Assuming that the application is successful, issuance of the temporary egambling licence upon payment of the required 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 251-265
- 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.
- Licensees and applicants should note that a template pro forma ICS is available from the Commission.
Approval of an ICS will be given once we are satisfied a system provides satisfactory, effective and comprehensive operational control.
Step 2: Approval of gaming 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.