Choosing a Gambling Jurisdiction
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What has sparked this sudden interest? The last two years have been a period of significant change for major international licences, such as those in Curacao and Malta. For this reason, forward-thinking operators looking to kick off or expand their presence are gradually considering alternatives. Among these, Kahnawake and the Isle of Man, the international licences, have been popular choices. Now, Anjouan is also seen as a viable option due to its broad geographical coverage, cost-effectiveness, and application process.
Disclaimer: while SOFTSWISS products are not licensed under the Anjouan gaming licence, we have crafted this content to raise awareness and address some common inquiries.
A Brief Overview and History
It is helpful to examine the surrounding context to grasp the intricacies of licences and how they function today.
For iGaming operators, exploring the historical and economic backcloth is a must. This analysis can reveal how certain economic pressures, historical conditions, and evolving legal frameworks have shaped the licensing conditions today. Knowing this can help the iGaming teams better assess the stability and viability of a jurisdiction, ensuring that the chosen licence not only fits current needs but also aligns with future market developments.
Anjouan, historically known as Ndzuwani, is a volcanic island in the Indian Ocean. It’s part of the Union of the Comoros Islands and boasts remarkable natural beauty.
In mediaeval times, the island was heavily influenced by Persian and Arab traders, shaping its culture, religion (Islam), language (Comorian, a blend of Arabic and Swahili), architecture, and economy. Anjouan thrived as a provisioning stop for ships trading between Africa, Asia, India, and Arabic countries before the construction of the Suez Canal.
Colonised by France in 1886, Anjouan remained under French influence until the Comorian archipelago declared independence in 1975. However, its history is marked by political unrest, including aspirations for secession from the archipelago.
Despite its potential as a tourist destination, ongoing political instability has hindered Anjouan's development. Additionally, the Comorian presidency rotates among the three islands every five years since 2001, aiming to balance economic and political forces within the union.
Anjouan's economy relies primarily on agriculture, particularly as a supplier for the perfume and culinary industries, offering products like ylang-ylang, vanilla, and cinnamon. However, the unpredictable nature of agriculture fails to provide long-term financial stability to the region.
When it comes to gambling regulation in Anjouan, two key regulatory bodies play prominent roles:
- Anjouan Offshore Finance Authority (AOFA)
This body primarily oversees the broader financial services sector in Anjouan, including gaming. It ensures compliance with anti-money laundering (AML) best practices. - Anjouan Licensing Services Inc. (ALSI)
As of May 2023, the ALSI team took over the administration of gaming licences. They mainly focus their forces on improving the efficiency of the licensing process, enhancing legal compliance, and supporting the operational needs of gaming businesses.
The region marked a pivotal moment in its history of gambling regulation in 2005 with the enactment of the Computer Gaming Licensing Act 007, officially launching the licensing era.
State in 2024
After nearly 20 years on the market, the Anjouan gaming licence is now capturing significant interest as it repositions itself as a 'Curacao licence alternative'. It is important, however, to objectively assess the current state, benefits, and risks associated with this licence on its own terms.
Recently, the administration of the Anjouan licence shifted to Anjouan Licensing Services Inc. This agency specialises in processing licence applications, conducting compliance checks, and providing educational resources on licensing procedures.
The Anjouan licence is issued on an annual basis and requires renewal each year. Unlike some regions that issue sub-licences, Anjouan grants standard individual B2B or B2C licences directly.
In April 2024, the Gaming Control Anjouan website stated that there are 19 licensees. However, it was impossible to verify the current status of these licences because all verification links led to a 404 error. While this issue may be link-related, players should have an alternative method to confirm licence validity directly with their chosen brand.
What Are the Advantages of the Anjouan Gambling Licence in 2024?
In 2024, the Anjouan licence offers a compelling option for operators of various scales, thanks to its numerous advantages. Here's why considering this licensing system can be beneficial:
International Coverage
The licence offers broad international reach, with only a limited list of excluded territories like Australia, Austria, Comoros Islands, France, Germany, Netherlands, Spain, United Kingdom, USA, all FATF Blacklisted countries, and any other jurisdictions banned by Anjouan Offshore Financial Authority.
Costs
While the iGaming sector is rarely associated with low costs, the Anjouan licence is notably affordable. At approximately EUR 17,000, its fees are significantly lower than those for licences in Curacao or Malta.
Tax Advantages
Anjouan does not levy a tax on Gross Gaming Revenue (GGR), offering substantial savings to operators.
Issuance Speed
Typically, obtaining an Anjouan gambling licence can take as little as 2-4 weeks, contingent on thorough preliminary document preparation and rigorous KYC. This is much faster than in many other jurisdictions, thanks to fewer bureaucratic hurdles.
High Standards
Despite its smaller size and emerging popularity, Anjouan does not compromise on quality. It upholds requirements for AML compliance, anti-fraud measures, and player protection, aligning with industry trends towards stricter regulations.
Cryptocurrency Friendliness
Anjouan stands out by permitting legal and licensed crypto operations, broadening potential market reach.
Broad Gambling Coverage
Anjouan licences encompass a wide range of gambling activities, including sports betting and all types of casino games under one umbrella, without the need for additional permissions. This flexibility allows operators to expand freely.
Diverse Business Applications
The licence is applicable to both B2C (operators and bookmakers offering services to players directly) and B2B (software and game content suppliers) sectors, providing comprehensive coverage and business opportunities.
These features make the Anjouan licence particularly attractive in the current climate, contributing to its rising popularity and appeal among gaming operators.
How to Acquire the Licence in Anjouan
Before initiating the process, it is worth verifying that the Anjouan licence aligns with both your short-term and long-term business goals. Choosing an ineligible licence can lead to unnecessary expenses and potential fines.
According to the regulator's requirements, both the servers and the player database must be located and hosted on Anjouan.
Steps to Acquire an Anjouan Gaming Licence
Preparation:
- Paperwork: gather all the necessary documents for KYC and application. Applicants must demonstrate their business's legality and transparency.
- Business Readiness: ensure your business is prepared for the licensing process and compliance checks.
Due Diligence:
- Checks: every key person (owner, director, ultimate beneficial owner) in the company will undergo rigorous Know Your Customer (KYC) and Due Diligence evaluations.
- Eligibility Requirements: licences will not be issued to individuals under 18, those with relevant criminal records within the last three years, or those assumed to be of bad character.
Documents:
- Certified copy of a valid passport.
- Recent utility bill.
- Police clearance certificate.
- CV/Resume.
- Original banker’s reference (relationship older than 2 years).
- Professional letter of reference from an accountant or lawyer (relationship older than 2 years).
- Detailed gaming content descriptions, including copies of agreements and/or third-party RNG testing certificates.
- Proof of web domain ownership.
- Copies of Terms & Conditions, covering underage and responsible gaming policies and player KYC policies.
Please ensure that all documents are either in English or accompanied by certified English translations and dated within the last 90 days.
Submission and Review:
- Application Submission: send your application through Anjouan Licensing Services Inc. (ALSI), including all required documents and the application fee.
- Review Process: this phase includes a comprehensive review of your business and the backgrounds of key individuals, possibly including interviews to discuss business plans.
Issuance: the review process typically takes 3-4 weeks. If successful, your licence will be issued, and you may begin operations.
Remember, this overview is based on collective research and serves as a guideline for the initial stages of the application process, not a legal directive.
Fees and Taxes
The cost of licence acquisition is often a momentous aspect of the whole process. Inquiring about 'how much is a gambling licence in Anjouan' reveals that this jurisdiction offers a highly attractive fiscal environment for gaming businesses.
With a 0% tax rate on Gross Gaming Revenue (GGR) and no VAT on total revenue or corporate income tax, operators can also enjoy a 0% corporate tax rate. These favourable conditions create an almost dreamlike opportunity for operators and serve as a strategic move by Anjouan authorities to attract more licensees.
The cost of obtaining a licence generally starts at around EUR 17,000. Additionally, there is an annual fee of EUR 2,000 for a Compliance Officer or Key Person Authorisation. The licence covers up to 2 web addresses. Additional addresses will incur an annual fee of EUR 500 each, charged with the licence.
Each year, the certificate must be renewed at a cost of approximately EUR 13,300.
| Cost Category | Licence Cost |
| Licence application | EUR 17,000 |
| Annual Compliance and Due Diligence Fees (Initial) | EUR 1,700 |
| If the structure is complex, additional due diligence fees are applied | EUR 250-500 |
| Annual Key Person Authorisation Fee | EUR 2,000 |
| Additional domain | EUR 500 (each) |
| Licence renewal fee | EUR 13,300 |
Turnkey Solutions
As the industry evolves towards greater operational independence, understanding and tailoring licensing options to specific business needs has become crucial. This shift marks a significant stride towards a healthier gambling environment and a more responsible business approach.
We support these developments by offering operators turnkey solutions to launch their own online casinos and sportsbooks. While SOFTSWISS clients focus on marketing their business, we provide the software infrastructure and platform tailored to their target markets, ensuring compliance with all regulatory requirements.
Licensing Frontier in 2024
In today's reality of stricter gambling oversight and heightened player awareness, obtaining a licence is the essential step zero before launching an iGaming brand online.
Savvy operators can not put all their eggs in one basket and choose just one licence. Forming the licensing strategy is not a game of chance but rather a game of skill, where various factors must converge for success.
When it comes to expanding geographical reach, iGaming businesses have several international licensing options to consider. These, among others, include Malta, Curacao, Kahnawake, and the recent Tobique licence, which SOFTSWISS was the first to acquire. However, acquiring just a single licence from Anjouan can be just as effective, allowing companies to seamlessly operate across multiple markets.
With the changing landscape of international gambling licences, Anjouan may as well become a viable alternative to the Curacao gambling licence or simply join the number of trusted international gambling jurisdictions. SOFTSWISS will keep you posted as the situation unfolds.