Jersey eGaming Brochure.PDF

THE PREMIER JURISDICTION FOR eGAMING | JERSEY eGAMING

JERSEY eGAMINGTHE PREMIER JURISDICTION FOR eGAMING

A GUIDE TO JERSEY FOR eGAMING COMPANIES

JERSEY eGAMING | THE PREMIER JURISDICTION FOR eGAMING

Jersey offers a unique base for remote gambling that includes a robust legal framework, competitive licence costs, attractive tax benefits and excellent IT infrastructure which together make Jersey a compelling location for establishing a new eGaming business, or moving an existing operation from another jurisdiction.

JERSEY

THE REGULATORY ENVIRONMENT The Jersey Gambling Commission (Jersey) Law was passed in 2010, leading to the creation of the Jersey Gambling Commission (”JGC”). The JGC participated in the creation of the Gambling (Jersey) Law 2012 which became effective from the 1st January 2013.

This legislation was specifically created to provide flexibility for the JGC to regulate what is a rapidly changing and challenging industry thereby providing an advantage over older, less flexible, legislation in competitor jurisdictions. The JGC is approachable, flexible and supportive, has a working relationship with the Jersey Financial Services Commission and, perhaps most importantly, is keen to co-operate with prospective operators and other regulatory bodies to ensure the eGaming industry in Jersey has the opportunity to flourish.

MULTI-JURISDICTIONAL OPERATIONSJersey recognises the degree to which local licensing regimes are being introduced throughout the world and that new and existing operators will often consider a new multi-jurisdictional approach to their operations. The JGC has subsequently adapted its costs to more appropriately reflect the costs of licensing for remote gambling activity in this new multi-jurisdictional era.

SINGLE LICENCE The licensing regime is straightforward and easy to understand. Jersey has a single B2C licence and/or a single B2B permit designed to capture all commercial gambling activity and ancillary business. A Jersey Remote Gambling Licence is valid for 5 years and is subject to an annual fee.

REQUIREMENT FOR A JERSEY LTD COMPANY Jersey Companies are subject to a compliance regime under the supervision of the Jersey Financial Services Commission, which requires high standards of corporate governance and high standards on anti-money laundering. The JGC provides further protection of the integrity and reputation of the Island to ensure Jersey presents a top class jurisdiction for eGaming. Jersey does not have a requirement for staff or specific services to be located in Jersey with the exception of the data centre, an MLRO and a local company to hold the licence. However, it is possible to relocate and base whole or part operations to the Island and assistance is available should this be the case.

INDEPENDENT TESTING This is required but not if already recently undertaken by an approved independent testing house.


ASIA PACIFIC

USA MIDDLE EAST

EUROPE

AFR

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LONDON

JERSE Y

AIR CONNECTIONS


The Jersey Gambling Commission (JGC) offers Licences, Permits and Approvals in different categories:

REMOTE GAMBLING OPERATOR’S LICENCEA Remote Operators Licence is required if you are offering B2C (Business to Customer) gambling from Jersey.

Application Fee £5,000

Remote Gambling Operators Licence Fee

£15,000

A further fee of £5000 may be requested if the cost of the application fee exceeds the first tranche.

IMPORTANT NOTE: Remote Gambling Operators (B2C) applications that include any Casino style games must also register with the Jersey Financial Services Commission (JFSC) under the Proceeds of Crime (Supervisory Bodies) (Jersey) Law 2008.

PLATFORM PROVIDERS PERMITA Platform Providers Permit is required if you are offering B2B (Business to Business) services (hardware or software) from Jersey.

Application Fee £5,000

Platform Provider’s Permit Fee

£15,000

A further fee of £5000 may be requested if the cost of the application fee exceeds the first tranche.

SOFTWARE DESIGNERS PERMITSoftware Designers Permit is required if you are designing gambling software in Jersey. A permit is required even if the games that are created are not released within Jersey for the public to play, but sold or licenced externally.

Application Fee £500

Platform Provider’s Permit Fee

£1,250

HOSTING SERVICE PROVIDERS A Hosting Service Providers Permit is required if you are providing facilities to host equipment or services utilised in online gambling in Jersey.

Application Fee £500

Remote Gambling Operators Licence Fee

£1,000

APPLYING FOR THE CORRECT LICENCEWhilst in most cases, it can be relatively easy to understanding which is the correct licence for your operations; before submitting a licence application (together with the application fee) we strongly recommend that you obtain suitable and appropriate advice regarding the type(s) of licence or permit required. Please refer to our ‘Contact Information’ page later in this guide.

Gaming Duty 0%

VAT 0%

Corporation Tax 0%

OUR FEES


WHY JERSEY?

KEY FACTS• Population > 100,000• Businesses > 7,000• Financial Services > 40% of GDP• Employment > 57,000 (25% of which in financial services)• Currency = £GBP• Time Zone = GMT

LOCATIONWith major financial centres only a short flight away, Jersey puts you at the hub of a world-wide travel network.

Less than an hour’s flight to London, daily flights to international hub airports and easy access to the UK and Europe’s transport networks, Jersey’s strategic location makes travel easy and enjoyable whether you’re taking your family skiing, spending the weekend in the city or visiting business contacts.

Jersey’s airport and private airfield is easy to access, so you can be home within minutes, ready to enjoy the Island’s relaxed pace of life.

Jersey’s close proximity to France - just twenty kilometres away - adds a distinctly European feel to the Island’s ambiance. It’s the perfect setting for the good life, whether you’re hosting clients or just appreciating the Island’s wealth of natural resources.

REPUTATION With a highly respected international reputation and recognised by both the IMF and OECD, Jersey regularly ranks as one of the top offshore finance centres in the world.Jersey’s well-regulated business infrastructure ensures that you will have peace of mind when you move your business to the Island.

Jersey’s long established world-class reputation as an offshore jurisdiction coupled with the flexibility of Jersey law makes us highly attractive to companies and investors seeking the place of incorporation for a holding company.

We are also Bitcoin pioneers; people are using it, businesses are accepting it and the world’s first regulated expert fund is here, all of which means even more options for your business.

Jersey is the leading international finance centre for listing vehicles, proudly being home to:• Over 110 companies listed on worldwide stock exchanges from London to New York with a combined market capitalisation of over £268bn • The greatest number of FTSE 100 companies registered outside the UK• The greatest number of companies registered outside the UK in the IM markets • One third of all Chinese companies in the AIM markets

BUSINESS AND TAXTHE BUSINESS ENVIRONMENTJersey offers a low tax environment, providing tax certainty and allowing for fiscally efficient cross-border investment, with no tax leakage: • No Capital Transfer Tax • No Capital Gains Tax • No Value Added Tax (“VAT”) • No Withholding Taxes • No Stamp Duty on trading company share transfers• No Wealth Taxes

Jersey’s position on UK VAT is a key advantage for Jersey over other jurisdictions. No VAT is chargeable on exports to Jersey and such exports can include the provision of professional advice and services to a Jersey entity including the costs of the production of marketing/advertising material in respect of promotions.

Jersey has a visible financial industry in its capital, St. Helier, which employs a quarter of the local workforce. In over five decades, Jersey has developed a breadth and depth to its range of products and services that competing jurisdictions find difficult to match. The wealth of experience and expertise offered by Jersey’s highly skilled financial service providers, combined with a world-class infrastructure, gives an unparalleled welcome to businesses and investors alike.


INFRASTRUCTURE Jersey has a highly-developed communications network including Island-wide gigabit and 4G connectivity, excellent access to world-renowned professional service providers and a progressive attitude to the establishment of corporate offices. This connectivity is set to place Jersey at the forefront of the global digital ecosystem, generating significant opportunities for eGaming and ecommerce Business.

Jersey maintains a competitive IT marketplace with 4 major telecoms providers and the Island offers a comprehensive and robust business, power and communication infrastructure with 3 Data Centres (ISO27001 and PCI compliant).

These Data Centres can offer Disaster Recovery, Cloud services and DDoS protection, alongside redundant power back up systems providing 24/7/365 service to stringent SLAs. Jersey has in total 42 banks and access to a host of Payment Solution Providers (“PSPs”). Jersey has access to all major accountancy firms and 5 first tier legal practices. Jersey is the jurisdiction of choice for corporate entities seeking to list – with the greatest number of FTSE 100 companies registered outside of the UK, being registered in Jersey.

CORPORATE SERVICE PROVIDERSJersey has access to an established network of third-party service providers with an interest in establishing an integrated solution for new eGaming businesses looking to relocate to the Island. Included in this category are highly experienced corporate service providers, games software testers, compliance resources, data hosting services, merchant services, tax advisers and other support.

Experts based in Jersey are well positioned to assist with establishing eGaming businesses by providing company formation, licencing and regulatory advice as well as assisting on full migrations of existing businesses and IPOs.

Dedicated eGaming legal teams, each with a thorough appreciation of the technical, regulatory and operational issues, are available to support your business strategy.

B2C operators based in Jersey can have their media spend, social strategies, affiliate programmes and reporting managed by industry professionals. Businesses selling services to other worldwide companies can discover the excellent B2B sales knowledge here on the Island of Jersey.

A WELL RESPECTED JURISDICTION Jersey’s reputation as a leading financial centre with a well-regulated business infrastructure has been repeatedly endorsed by the IMF and the OECD and the Island regularly ranks as one of the top offshore finance centres in the world. As a jurisdiction to base a business, it has a highly respected international reputation.

The Island has a unique constitutional position, is self-governing, with a stable government and independent fiscal and legal systems.

Although its allegiance is to the British Crown, the Island’s domestic autonomy has been preserved via charter and convention through 800 years of history. The Island has its own democratically elected Parliament, the States of Jersey which has responsibility for domestic affairs including fiscal matters. Jersey also operates its own judicial system with roots in the customary law of Normandy, but which has also been subject to numerous influences over the centuries, principally from English law and the law of France.

Jersey’s robust, modern and sophisticated legal framework is the source and foundation of Jersey’s finance industry. Developments and enhancements are continually being made to ensure flexibility and attractiveness to domestic and international markets.


Jersey has carefully reviewed the legislative environment for eGaming in competing jurisdictions and has incorporated the best elements into its local legislation. The Jersey Gambling Commission has autonomy and scope to adapt its licensing regime quickly providing a dynamic environment and enabling operators to take advantage of emerging opportunities quickly.

Part of Jersey’s international eGaming focus is accentuating the IPO and Listing services already in place on the Island. Jersey is currently home to 110 companies listed on the worldwide stock exchanges from London to New York, the greatest number of FTSE 100 companies registered outside the UK, and the greatest number of companies outside the UK that are listed on AIM, including a third of all Chinese companies listed on AIM. In terms of numbers, Jersey is the leading offshore jurisdiction for Listing. This will give companies seeking to list on global stock markets extra advantages, given Jersey’s international reputation as a transparent, rigorously regulated global finance centre. Shares in Jersey incorporated Holding Companies are free of Stamp Duty and free of withholding tax on dividends, interest and royalties.

LIFESTYLEJersey is a location for those who want to work in a thriving, international centre of excellence, but who also seek a life beyond the office. In Jersey, the work-life balance really is achievable. As well as offering a fantastic business environment, Jersey delivers an exceptional lifestyle and a safe and secure location for families thanks to its high-class education and health systems, a first-class range of restaurants, including three with Michelin Stars, and an abundance of high quality leisure and sporting facilities on the doorstep. In addition, the ability for people to be home, on the beach or in breath-taking countryside within minutes of leaving the office, is a major bonus.

With a pace of life that gives you and your family space to thrive, Jersey is an environment where people and businesses flourish.


A strong, digitally enabled and diversified economy. The Island’s government supports the development of a strong and diversified economy with an emphasis on economic growth, development and job creation in the Island.

The States of Jersey enables and supports appropriate inward investment into the Island through Locate Jersey (www.locatejersey.com), the government organisation responsible for promoting, attracting and retaining inward investment for Jersey. The States of Jersey also created, developed and grant-funds Jersey Finance Limited (www.jerseyfinance.je) and Digital Jersey Limited (www.digital.je) which are public/private organisations, respectively responsible for the promotion and development of those areas of the economy.

Digital Jersey is the body actively promoting the technological development of the Island and securing new business and industries. Support for new businesses looking to relocate to the Island is also available from the inward investment body for the Island, Locate Jersey, and eGaming is

being promoted and supported by an industry-led group called Jersey eGaming. You may contact any of these three for advice, guidance and further information however the first stage of any application should be to contact the Jersey Gambling Commission.

There are app developers and games developers with extensive knowledge of building financial and trading systems.

Jersey is lottery friendly, quietly producing in excess of 160 market leading instants in the past 10 years. Jersey developers have shaped this industry and are at the forefront of mobile and online enablement of lotteries.

Software providers in Jersey have deep experience of working with global leaders in the lottery industry and have led the thinking into exactly how their products should operate. This industry knowledge married with attention to detail and creative flair enables businesses to focus on the fun parts, with the confidence that the products will be well received by players and provide excellent returns for their customers.

LOOKING TO THE FUTURE


IMPORTANT CONTACT INFORMATION

JERSEY eGAMING [email protected]

JERSEY GAMBLING COMMISSIONDr Jason Lane, Chief [email protected]

Matthew Viney, Technical and Compliance Officer [email protected]+44 (0) 1534 828540+44 (0) 7700 716797

www.jgc.je

LEGAL SERVICESCAREY OLSEN Marcus Pallot, Partner [email protected]+44 (0) 1534 888900

Steve Hunt, Marketing Projects [email protected]+44 (0) 1534 888900

www.careyolsen.com/services/corporate-and-commercial/e-gaming-law

CORPORATE & FIDUCIARY SERVICESGARFIELD BENNETT TRUST COMPANY

Ray Davies, Group I-Gaming [email protected]

James Cunningham-Davis, Director and i-Gaming [email protected]+44 (0) 1534 857773

www.garfieldbennett.com

SOFTWARE PLATFORM PROVIDERS TWELVE40 LIMITED

Nigel Renouf, [email protected]+44 (0) 7829 871790

Andrew Jarrett, [email protected]

www.twelve40.com

CONSULTANCY AND INVESTMENT SERVICESTHINK GAMING

Phil Shaw, [email protected]+44 (0) 7797 847001

Tom Eaves, [email protected]+44 (0) 7921 824065

www.thinkgamingglobal.com

HOSTING AND TELECOMSJT GLOBAL

Mark Stuchfield, VP Business Development [email protected] +44 (0) 7797 741079 +44 (0) 1534 882645 www.jtglobal.com/egaming

CLOUD HOSTINGCALLIGO

Carl [email protected]: +44 (0) 330 124 2491

www.calligo.cloud/egaming

LOCATE [email protected] +44 (0) 1534 440604

www.locatejersey.com

DIGITAL [email protected]+44 (0) 1534 789333

www.digital.je


LEADING OFFSHOREJURISDICTIONFOR IPO AND

LISTING SERVICES

LISTING

MOREABOUTJERSEY...

MOREABOUTJERSEY...

FOR MORE INFORMATION PLEASE VISIT WWW.JERSEYEGAMING.COM JERSEYeGAMING@ #JERSEYeGAMING

A WELL RESPECTEDFINANCIAL JURISDICTIONA WELL RESPECTEDFINANCIAL JURISDICTION

ENDORSED BYIMF, OECDENDORSED BYIMF, OECD

UNIQUE CONSTITUTIONALPOSITION; SELF GOVERNINGUNIQUE CONSTITUTIONALPOSITION; SELF GOVERNING

EXCELLENT ITINFRASTRUCTUREEXCELLENT ITINFRASTRUCTURE

FINANCIALADVANTAGES

NO VATNO GAMING DUTY

NO CORPORATE TAXNO CAPITAL GAINS TAX

NO CAPITAL TRANSFER TAXNO WITHOLDING TAXESNO SHARE STAMP DUTY

NO WEALTH TAXES

EIRE

UK

ISLE OF MAN

GUERNSEY

FRANCE

JERSEY

To other UKand international

destinationsincluding USA

Onward tointernationaldestinations

including EMEA

TECHNICALADVANTAGES

www.jerseyegaming.com

5 DATACENTRESISO 27001PCI COMPLIANCETELCOS 4OFF ISLAND CONNECTIVITY

THEPREMIER

JURISDICTION FOR eGAMING

LICENSINGCOSTS

DISASTER RECOVERYLICENCE £0K

MIRRORING LICENCE £5KPLATFORM PROVIDER’S

PERMIT (B2B) £10KOPERATOR’S LICENCE

(B2C) £15K

USEFULLINKS

JERSEY FINANCEWWW.JERSEYFINANCE.COM

DIGITAL JERSEYWWW.DIGITAL.JE

THE JERSEY GAMBLING COMMISSIONWWW.JGC.JE

LOCATE JERSEYWWW.LOCATEJERSEY.COM

LOTTERYFRIENDLY


JERSEY eGAMING SERVICES [email protected]

REGULATORJERSEY GAMBLING COMMISSIONThe Jersey Gambling Commission is the independent regulator for gambling in Jersey, and was established in 2010. The legislation that established the Commission also enshrined three guiding principles:• Gambling should always be conducted responsibly and with safeguards necessary to protect children and vulnerable people• Gambling should be verifiably fair to consumers of those services• Gambling should be regulated in accordance with accepted international standards to prevent fraud and money laundering, and should not be permitted to be a source of crime

A Remote Gambling Operators Licence is required to offer Business-to-Customer (B2C) gambling from Jersey. For a licence to be granted, the applicant must have a company in the Island, in addition to which, data covering player transactions and game outcomes must be held in Jersey. Applicants have the opportunity of using a corporate services provider, of which there are many, including some which are also holders of Personal Gambling Licences, and therefore may sit as directors making decisions affecting the company. The Commission is funded not by government or by the taxpayer, but by licence and permit holders.

Although the Commission is independent of the Island’s government, it works with the department of the Economic Development Minister, whose political remit covers gambling legislation.

Jersey’s gambling legislation is modern and flexible, and enables the Commission to define and create new licence categories without the need to amend primary legislation.The Commission has set a competitive schedule of fees based on the cost of regulation, which is laid out in more detail under the various licence categories on our website at www.jgc.je. The JGC does not collect fees for government or seek to make excessive surpluses.

LEGAL SERVICESCAREY OLSENCarey Olsen is a market leading offshore law firm. We employ 360 people including over 200 fee earners.

Our dedicated eGaming legal team has a thorough appreciation of the technical, regulatory and operational issues affecting this flourishing sector. We have been advising clients since the inception of the eGaming industry and we are at the forefront of offshore eGaming law. We are fully conversant with the various licensing and gambling laws and our experts can provide company formation, licensing and regulatory advice as well as assisting on

full migrations of existing businesses. We can also provide on-going support in the future development of client business including general corporate work (where listing work is a speciality), restructuring and representation when encountering litigation.

Email Marcus Pallot, Partner [email protected], or Steven Hunt, Marketing Projects Director, [email protected]

+44 (0) 1534 888900

www.careyolsen.com/services/corporate-and-commercial/e-gaming-law

CORPORATE AND FIDUCIARY SERVICESGARFIELD BENNETT TRUST COMPANYGarfield Bennett Trust Company is an independent, niche international service provider regulated and licensed by the Jersey Financial Services Commission.

We strongly believe that service should be based upon respecting traditional values, building personal relationships with our clients and focusing on attention to detail.

This is how we ensure that modern day expectations for outstanding service standards and delivery are always met.


We combine a highly professional and unrivalled quality of service with relevant industry knowledge to provide the complete solution that you need to give you the perfect platform for your business.

No matter what type of game, and regardless of your size, (start-up to multi-jurisdictional operation), our highly experienced and knowledgeable i-Gaming Specialist Team provides support at every stage of the process including structuring your business, business planning, incorporation, applying for the license and establishing your business through to the launch phase and beyond.

Our independence provides our clients with the scope and flexibility of working alongside other professional advisers or specialists in their chosen field. This ensures that the service we provide is always truly bespoke and uncompromised.

Email James Cunningham-Davis, Director [email protected] or Ray Davies, Group i-Business Executive, [email protected]+44 (0) 1534 857773

www.garfieldbennett.com

Garfield-Bennett Trust Company Limited is regulated by the Jersey Financial Services Commission under the Financial Services (Jersey) Law 1998 for the

purpose of carrying out Trust Company business and Fund Services business.

SOFTWARE PLATFORM PROVIDERSTWELVE40 – HI-TECH, LO-COST LOTTERIESTwelve40 is a Lottery and Platform provider that holds a B2B licence in Jersey and a B2C license through a wholly owned subsidiary which provides a local lottery to Jersey residents. The twelve40 platform is an ultra-modern, globally scalable platform featuring high frequency financial and messaging systems which underpin a low-cost and customisable lottery and/or raffle solution together with world class instant win games content. The founders of Twelve40 have over 14 years industry relevant experience, with a specialist team behind them that includes highly skilled developers, marketers and masters qualified data scientists and statisticians. Twelve40 have created specific licensed delivery solutions for instant win game content. These specialist service providers enable platform providers and operators to quickly and seamlessly gain access to content through a simple API integration, saving months of work and eliminating risk. It is also possible to reskin existing games so that they are unrecognisable from the original, providing cost effective access to

bespoke content whether for a specific tournament, event or market segment. These specialist solutions are constantly developing new player mechanics, ensuring that their developers have access to the latest environments for their games and themes. By being focused on the sector, developer innovation is encouraged, with creative inspiration often driven from the changing requirements and demands of the client base, resulting in advanced social and engagement features and flexible payments.

Email [email protected] or call+44 (0) 7829 871790

www.twelve40.com

CONSULTANCY AND INVESTMENT SERVICESTHINK GAMING GLOBAL “Providing independent consultancy and investment to online and mobile gaming companies globally”

THINK CONSULTANCYOffering a range of strategic services to clients across the globe, our team of experts are on hand to deliver independent, cutting-edge solutions throughout the gaming ecosystem.

THINK INVESTMENTWhether you’re looking for additional resources, needing investment or simply want to accelerate your entry to market,


Think Gaming is here to support your business at all stages of its growth cycle.

Our senior consultants have a 20+ years’ experience of building brands and growing profits across various gaming sectors. We are a small team with innovative ideas and we pride ourselves on our no-nonsense approach. If we think we can help, we will put forward a proposal. If we are not the right team for the job, then we will try to connect you with someone who can help. We look forward to hearing from you.

Email [email protected] or [email protected] call +44 (0) 7797 847001 or +44 (0) 7700 824065

www.thinkgamingglobal.com

HOSTING AND TELECOMSJT Based in the Channel Islands, JT is part of the JT Group, a trusted advisor in infrastructure and data centre services to eGaming operators under licensing of the Jersey Gambling Commission (JGC). Our professional services range from server, storage, security and network infrastructure design and implementation, to security, software and hardware fulfilment plus 24/7/365 managed support services.

An innovative, Tier 1 global communications operator with 120 years’ experience, JT is the premier pan-island communications provider with an international presence across Europe, Asia and the United States and have invested heavily in a resilient off-island network, helping to robustly connect the Channel Islands internationally and support their place on the global business stage.

JT’s product range encompasses voice and data, consultancy, co-location, internet, security, cloud backup and mobile, to support services and managed services. Supporting both domestic and business customers, JT is also widely recognised as the largest provider of data services in the Channel Islands.

JT’s Tier 3 Data Centres hold the highest Service Organisation Certification (SOC) ratings in the Channel Islands and are trusted by the world class eGaming and financial services clients. JT is the partner of choice eGaming solutions in Jersey and the Channel Islands.

www.jtglobal.com/egaming

CLOUD HOSTINGCALLIGOCalligo is the only dedicated offshore cloud service provider – trusted globally, locally delivered. Through its global CalligoCloud™ Network, located around the world, it is able to offer a range of cloud services, delivered to consistent operational and contractual standards that are backed by the highest levels of data security. Delivering a highly efficient range of cloud services to organisations of any size empowers its customers, whether offshore or onshore, to take advantage of the benefits cloud computing offers. Calligo has been certified ISO 9001 & 27001 across all cloud services, including 100% data encryption and guaranteed data residency. Calligo is also uniquely able to guarantee performance across all applications and services running within any of its service offerings.

Connect with Calligo by reading our blog: http://www.calligo.cloud/blog/indexOr follow us on Twitter, twitter.com/calligocloudOr visit us on Facebook, www.facebook.com/CalligoCloudOr email Carl Huelin [email protected]+44 (0) 330 124 2491

www.calligo.cloud/eGaming


The 1990s saw the creation of a number of regulatory bodies, but a significant development occurred when the UK passed the Gambling Act 2005, leading to the creation of the UK Gambling Commission in 2007. The UK was the first major Western country to create such a Commission to regulate this industry.

HISTORY OF UK AND EU REGULATION IN RELATION TO eGAMING IN JERSEY

Continental Europe has been slower to respond, but partly as a result of the 2008 global financial crisis, EU states have recognised the opportunity to create their own legislation, increase the transparency of and properly regulate the industry. Using this framework, tax authorities have been able to collect revenues from these activities.

Initially, the UK did not impose a gambling tax for non-resident online gambling businesses that advertise and sell their services to UK residents, but rather saw their role in monitoring the jurisdictions, and the businesses in those jurisdictions providing this service. This was achieved through section 331 of the Gambling Act 2005. This provision prohibited any countries outside of the EEA, the UK and Gibraltar from marketing gambling services in the UK, unless the jurisdiction obtained specific approval, after which the jurisdiction was added to a “White List”, which included the Isle of Man and Alderney.

In 2009, some irregularities arose as to one of the existing White List jurisdictions, and Jersey’s pending application for inclusion was suspended. This coincided with a change in the UK Government, and the White List remained closed pending further assessment. As a result of this, and despite efforts on the part of the Jersey government and industry, Jersey was not included on the White List. Hence, no businesses licensed in Jersey would be able to advertise or sell services into the UK, which at the time was the largest regulated market in the world. As other EU states began to impose gambling taxes, the UK also turned its attention towards how it could realise taxation revenues from the industry. In March 2012, the Offshore Gambling Bill was published proposing a new point of consumption tax of 15% to be effective from 1st December 2014. The Bill received Royal Assent on the 14th May 2014 and became the Gambling (Licensing and Advertising) Act 2014.

The result is that all existing businesses advertising and selling to UK residents must now be registered with the UK Gambling Commission under a Remote Operating Licence and pay a 15% gambling levy. For Jersey, this has levelled the playing field with competitor jurisdictions, removing the historic disadvantage of non-inclusion on the White List. Consequently Jersey’s already inherently attractive regime for eGaming can now be considered a real alternative as a jurisdiction for delivering an eGaming proposition.

Jersey eGaming Brochure.PDF

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