Faced with increased competition from individual national regulators, the Alderney Gambling Control Commission has announced a 50% reduction in its first year fees for category 1 and 2 online gambling licenses.
The annual fee drops from £35,000 to £17,500 for the first year of licensing for both Category 1 (C1) and Category 2 (C2) licenses. A C1 license is needed by operators of online casinos or other gambling sites that conduct business directly with consumers, while a C2 licence is usually held by a software or network provider that only deals in B2B transactions.
Robin Le Prevost, Alderney’s director of e-commerce development, stated:
"We recognised that our unique fee-based system, rather than a ‘tax and duty’ system, provides real benefit for established operators but could be improved for new operators moving to Alderney."
"This move adds to improvements we introduced last year. Our Games Developers Certificate can be upgraded to a Category 2 licence, which allows for the operation of a B2B platform, without the loss of any residual value."
"This means that developers wishing to become platform providers, with all the benefits that brings in terms of swifter and cheaper integration costs, can now do so at a substantially lower cost. This, in conjunction with the recently approved Cloud technology, provides developers and start-ups with a highly attractive environment from where to base their business."
A useful comparison of the fee structures adopted by several European iGaming regulators is published by the AGCC here: http://www.alderneygambling.com/media/6319/egamingjuristictionstable.pdf