Gaming license in Antigua

The process of establishing Virtual Casino and Sports Book in the Zone is straight forward. In order for the Directorate to ascertain the background and qualifications of all proposed investors, a process has been established by which qualified applicants may be granted a License to operate their investments registered.

With effect from 22nd May of 2001, the Government of Antigua & Barbuda introduced new regulations and policies for the online gaming industry. These regulations are applicable in the Free Trade Zone of the country, and offers simple methods to register a Virtual Casino and Sports Book in the region. The region has congenial business environment with access to commercial facilities and support such as banking, accounting, legal, and facilities management. The availability and cost of telecommunications makes the industry all the more prosperous in the region. The Directorate ascertains the background and qualifications of all proposed investors. For this purpose, an established process screens applicants wherein they are granted a license to operate their registered investments.

Schedule "A" Application for an Interactive Gaming or Interactive Wagering License

Schedule "B" Business Entity Information

Schedule "C" Personal Information

Schedule "D" Renewal Application for Interactive Gaming and Interactive Wagering

License

Schedule "E" Application for a Key Person License.

Application for interactive gaming or interactive wagering licence

The original official application forms must be completed and returned to the Commission with all required documentation and an US bank draft for the sum of US $525.00 (US $25.00 in respect of application processing fee and US $500.00 in respect of due diligence fee).

After the due diligence is completed and if having regards to inter alia the findings, the Commission agrees to approve the application. When the prescribed license fee has been paid, the License shall be issued immediately thereafter. The entire process from application to licensing takes approximately thirty (30) days.

An application for an interactive gaming or interactive wagering license must be submitted to the Authority in the form set out in Schedule "A" to these Regulations.

To be considered by the Authority, an application for interactive gaming or interactive wagering license must contain all of the information requested in the form set out in Schedule "A" and be accompanied by:

• If applicable, a business entity information Form as set out in Schedule "B";
• Personal information forms as set out in Schedule "C" for each director, partner and chief executive officer of the applicant and each shareholder with five percent (5%) or more ownership of or controlling interest in the applicant
• Where the cost of conducting the investigation and due diligence may exceeds, the Authority shall notify the applicant in writing to provide a further non-refundable deposit or deposits in such amounts as the Authority may determine.
• Subject to the foregoing section, the Authority shall promptly consider the application and shall, if possible, within 30 days either:
• Grant the application and issue an interactive gaming or interactive wagering license;
• Deny the application; or
• Return the application to the applicant with request for additional information.

The Authority may grant an application for an interactive gaming or interactive wagering license only if the Authority is satisfied that:

• The applicant is suitable to hold an interactive gaming or interactive wagering license;
• Each director, partner and chief executive officer, and each shareholder with five percent (5%) or more ownership of or controlling interest in the applicant is suitable to be associated with an applicant's operation.
• The Authority in its sole discretion may require that all beneficial owners of shares complete the personal information Form set out in (Schedule "C")
• The Authority, in its sole discretion, may deny an application even if the Authority is satisfied of the matters mentioned in the foregoing section. A decision by the Authority to deny a license is final and conclusive

An applicant shall pay Hundred Thousand United States dollars (US $100,000) for the first year's interactive gaming license or Seventy Five Thousand United States dollars (US$75,000) for the first year's interactive wagering license, which shall be an annual licensing fee.

The Authority shall consider an applicant suitable to hold an interactive gaming or interactive wagering license, if the applicant can satisfy the Authority of the following:

• The applicant's good character, honesty and integrity;
• The applicant's good business reputation, sound current financial position and financial background;
• The applicant has arranged, or is arranging, a satisfactory ownership, corporate or other business structure;
• The applicant has, or is able to obtain, appropriate resources and is able to maintain minimum required reserves as established by the Board in order to ensure that players shall have winnings paid and deposits returned;
• The applicant has the appropriate technical ability to conduct interactive gaming or interactive wagering;
• The applicant has the appropriate business ability to conduct interactive games under an interactive gaming or interactive wagering license;
• The applicant is committed to maintaining a physical presence in Antigua and Barbuda;
• The applicant shall take appropriate measures to eliminate any pornography from a licensed site;
• The applicant shall take measures to discourage a compulsive gambler from utilizing a licensed site;
• The applicant is in the Authority's opinion untainted with illegality;
• The applicant shall follow policies and take affirmative steps to prevent money laundering and other suspicious transactions; and
• The applicant shall comply with the policies and directives, which the Authority deems, appropriate. if applicable, a business entity information Form as set out in Schedule "B";
• The Authority shall consider each director, partner and chief executive officer of the applicant and each shareholder with five percent (5%) or more ownership of a controlling interest in the applicant suitable, if the Authority is satisfied of each person's:
• Good character, honesty and integrity;
• Good business reputation, sound current financial position and financial background; and;
• General suitability to be associated with a license holder.
• The Authority, or such person as the Authority may appoint, shall conduct a thorough investigation into the matters referred to in the foregoing regulations to determine the applicant's suitability to hold an interactive gaming license and the suitability of each director, partner and chief executive officer of the applicant, and each shareholder with five percent (5%) or more ownership of or controlling interest in the applicant, to be associated with a license holder. Any reports submitted to the Authority shall become the sole property of the Authority.
• The Authority may consider evidence that an applicant has been licensed to conduct gaming in another jurisdiction toward a finding of the applicant's suitability to conduct interactive gaming and interactive wagering activities. The other licensing jurisdiction must have regulations comparable to those of Antigua and Barbuda to ensure the integrity of the interactive gaming and interactive wagering and the suitability of the operations. The Authority shall also consider applicant's commitment to
• Prevent money laundering;
• Prohibit underage gaming; and
• Restrict and discourage compulsive gaming in interactive gaming and interactive wagering.
  
  Antigua and Barbuda Gambling License

Internet gaming facilities are deemed to be financial institutions under the law. They are regulated by the Financial Services Regulatory Authority (FSRC), which gives the internet gaming operators a high level of comfort in the jurisdiction and in the ability to conduct business on a predictable basis. It is useful to take note of the following points:

• A 3% tax is payable by operators on their "Net win" defined as "the difference between the gross stakes laid and the winnings paid out".
• Operators are entitled to deduct software licensing or software development costs from (a) above, capped at no more than 40% of the Net win for all companies provided claims for the deduction of such costs are accompanied by documentary support evidencing the costs.
• Operators are entitled to deduct charge backs on credit cards for a period up to 18 months after the original charge was made provided claims for the deduction of such charge backs are accompanied by documentary support evidencing the original credit and the charge back.
• The 3% tax on Net Win and the deductibles, as described at (a), (b) and (c) above, are fixed until 2006, after which they will be subject to review by the Government and the representatives of the Industry.
• Operators are entitled to a maximum cap of US$50,000.00 per month on taxes and the Commissioner of Inland Revenue would have no interest in the books of entities that pay the full cap. However, such operators are obliged to continue to maintain financial books and records and to provide access by the Government through its authorized agencies in the event of the need to examine such books and records in accordance with the laws of the State particularly the Money Laundering (Prevention) Act, the International Business Corporations Act and the Proceeds from Crime Act and their amendments.
• The maximum cap of US$50,000.00 per month on taxes and the terms and conditions described in (e) above would remain unchanged until 2004, after which they will be subject to review by the Government and representatives of the Industry.
• Gaming License fees are US$75,000.00 per annum for those Operators who maintain a primary server and operations in Antigua and Barbuda and who pay the tax as described above.
• Wagering License fees are US$50,000.00 per annum for Operators who maintain a primary server and operations in Antigua and Barbuda and who pay the tax as described above.
• The internet gaming industry benefits from high quality telecommunication facilities provided by Cable and Wireless. The costs of such telecommunications are highly competitive and are lower than in the vast majority of jurisdictions which provide a home for internet gaming.
• In order to obtain a Gaming Licence it is necessary to have an offshore company formed and that company will make the application.  A company can apply for an interactive gaming licence or an interactive wagering licence. The application must be made on certain prescribed forms provided by the Government.  Detailed Information must be given about the company, the directors, officers and the shareholders holding more than 5% of the shares of the company.  The applicants will be required to submit certified copies of their passport, passport sized photographs and reference letters in support of the application. The fee for the interactive Gaming Licence is $100,000.00 and the fee for the interactive wagering licence cost $75,000.00.  It is necessary for a “Key Person” to be appointed. That person is the one with whom the Government will communicate about the company. The licence application process can take up to 30 days to be completed and for the licence to be granted.
  

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