Alderney is one of the smallest of the British Channel Islands and is located in close proximity to Jersey and Guernsey. In recent years, the islands have seen considerable financial activity because of the considerable tax breaks and advantaged that can be leveraged. With the explosion of the internet, Alderney has now become a haven for online gambling operators.
Online Gambling on the Island is overseen by the Alderney Gambling Control Commission (AGCC). The commission operates a system whereby it grants licenses to offshore operators who need to find a location for their servers. Operators that receive AGCC licenses subsequently make arrangements to have their servers to be setup and housed in a safe and secure location on Alderney.
The AGCC has two primary types of licenses that can be granted to operators seeking to locate their servers on the island:
- Category 1 B2C Licence (business to consumer) – Suitable for online gambling sites seeking to receive player registrations and manage deposited funds for playing games.
- Category 2 B2B Licence (business to business) – Suitable for gambling operators that provide gaming, transactional or operational software to online gambling sites.
In addition to those formal licences, there is a third avenue for parties in need of temporary licences. These would be best suited for third-party operators only seeking to engage in contractual periods for specified periods of time.
Operators licenced in Alderney can benefit from tax emption as well as not having to pay VAT. In addition, there are no forms of sales taxation or any other duties to incur.
Finally, the AGCC has impressive international relationships with some power entities. The Nevada Gaming Control Board made a 2011 agreement with the AGCC in which intellectual resources were pledged to be shared between both parties.