E-Gambling Executive Summary
Executive Summary
“The Alderney Gambling Control Commission (AGCC), is an independent and non-political body whose members are nationally recognised experts in gambling regulation and licensing, has already established itself at the forefront of the regulation of Internet gambling worldwide”
In Europe, but outside the EU the British Channel Island of Alderney is geographically and strategically well placed to provide worldwide online gaming and betting operations with a
central European base. The Island’s unique position - just eight miles from France - combined with British traditions, language and culture; make Alderney your ideal off-shore location.
Location, of course, is only one consideration. Alderney has owed allegiance to the English Crown for over 900 years. And, although the island enjoys all the benefits of being part of the European Economic Area, Alderney is not part of the European Union and as such does not have Value Added Tax nor is it subject to EU directives.
Alderney is a self-governing, democratic territory and one of the constitutive islands of the Bailiwick of Guernsey. The United Kingdom looks after Alderney’s foreign affairs and defence. The island has its own independent judiciary, a stable government, and offers all the advantages of a well-established international offshore business, e-commerce and finance centre.
The Channel Islands are renowned for the stability of government and for the highest standards of regulation, accompanied by a sound judicial system.
To facilitate establishing a global e-gaming and e-betting presence, the States of Alderney as passed legislation to further the development of e-commerce on the island and to support the electronic transactions of business - in a straight-forward, non-bureaucratic form.
The island’s government actively embraces the development of online gaming and betting operations and, shortly after introducing its own legislation to allow electronic betting on the island, appointed the Alderney Gambling Control Commission.
The States of Alderney remains committed to working closely with the Alderney Gambling Control Commission and all existing and potential licensees in order to protect and safeguard the best infrastructure within a well-regulated environment.
Ideal infrastructure
Setting up your offshore operations in Alderney means you will benefit from an infrastructure which provides the best possible framework for multinational electronic gaming and betting
Companies: the latest state-of-the-art computer and communications technology, a well-structured “user friendly” company law and a good selection of residential and commercial
properties with few restrictions on ownership of land or property.
First-class telecommunications
Since mid year 2005 Alderney permitted it’s Licensees’ technical infrastructure to be cited on the larger neighbouring Island of Guernsey. This brought about significant benefits to E-Commerce operations as Guernsey offers effectively unlimited connectivity and a significantly cheaper pricing structure together with the advantages of competition as there are three Network providers and a substantial number of independent Data Centre operators. This policy recognised that the ever evolving Interactive Gaming industry required significant and sophisticated services which Alderney was unable to provide on its own. It is fair to say that with Guernsey’s well established and sophisticated facilities mainland quality products and services are available in an offshore low tax environment.
Guernsey and Alderney can now offer tera-bit quantity connectivity over multiple pathed fibre optics with inbuilt DDOS protection.
Significant tax advantages
Both Alderney and Guernsey have a variety of highly attractive tax advantages created by an efficient tax regime. There is no VAT on products and services (Hosting and Connectivity) which mitigates the costs of basing ones equipment within territory. This factor is of even more significance if the operator is entering into a licensing / royalty situation with an EU based Company. Services provided in Alderney / Guernsey by an EU based software house for example do not charge VAT on the value of the goods provided. VAT or Sales is not levied or collected on gambling wagers and profits and therefore cannot be used to mitigate its bottom line erosion.
Corporate Tax is levied on Non-resident Companies at a flat rate of only £600 per annum irrespective of profits. This will be replaced by 2008 by a new system which reduces this figure to zero.
Offshore company benefits
The Alderney Company Law is a modern, user-friendly piece of legislation which is ideally suited to today’s e-commerce operations and ensures that company incorporation is not subject to unnecessary delays. Its main features are:
• Only one shareholder required
• Simplified filing procedures
• Unlimited ‘Objects’ clause
• Inherent flexibility
• Low setting up costs