Gambling in Nauru is regulated by the Gaming Ordinance, which governs all forms of gaming activities.
All gambling operators must obtain a government-issued license before offering services in Nauru.
The Gaming Ordinance sets strict requirements and penalties for non-compliance, including fines and imprisonment.
Nauru’s regulatory framework includes measures to prevent money laundering and criminal involvement in gaming.
There is a focus on ensuring operators comply with anti-money laundering and responsible gambling obligations.
Taxation of gambling businesses is enforced under broader business profit and personal income tax laws since 2014.
Electronic transactions and online gambling are areas of growing regulatory attention in Nauru’s national strategy.
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Legislation
Primary Legislation
The principal legal framework governing gambling in Nauru is the Gaming Ordinance. This legislation regulates all forms of gambling activities within the country. The Gaming Ordinance establishes the legal definitions, requirements, and compliance obligations for gaming operators. It also outlines the penalties for non-compliance and provides the statutory basis for the regulation and oversight of gambling activities. The law is designed to ensure that all gambling operations are conducted in accordance with national standards and legal requirements.
Regulatory Authority
Oversight and enforcement of gambling laws in Nauru are the responsibility of designated government authorities as specified in the Gaming Ordinance. The regulatory authority is tasked with ensuring compliance with the legislation, granting permissions, and monitoring the conduct of gambling operators. The key legal responsibilities of the regulatory authority include:
Implementing and enforcing the provisions of the Gaming Ordinance
Supervising all gambling activities to ensure legal compliance
Imposing penalties and taking corrective action against violations of the law
Maintaining oversight of the integrity and fairness of gambling operations
License Types
Types of Gambling Licenses in Nauru
Nauru issues gambling licenses under its Gaming Ordinance, which covers all forms of gambling activities offered within the country.
The primary license is a general gaming operator license, required for any entity wishing to provide gambling services, including land-based and potentially online gambling.
Specific sub-categories or separate licenses for different gambling activities (such as casinos, betting, or lotteries) are not explicitly outlined in publicly available information; all operators must obtain a government-issued license to operate legally.
Application Process for Gambling Licenses
Operators must formally apply to the government of Nauru for a gaming license, as specified in the Gaming Ordinance.
The application typically requires submission of detailed information about the applicant, the business structure, and the intended gambling operations.
Applicants may be required to undergo background checks to ensure suitability and compliance with anti-money laundering and other regulatory standards.
The government reviews applications and may request additional documentation or clarification before making a decision.
Duration, Renewal, and Eligibility
Licenses are issued for a fixed period, typically one year, after which they must be renewed to continue operations.
Renewal requires the operator to demonstrate ongoing compliance with all regulatory requirements and may involve a review of business operations and financial status.
Eligibility is restricted to applicants who can demonstrate financial stability, integrity, and the ability to comply with regulatory standards.
Operators and key personnel must not have criminal backgrounds or associations with criminal organizations.
Licensing Costs and Financial Requirements
The Gaming Ordinance stipulates the payment of licensing fees as part of the application process. The exact fee amounts are determined by the government and may be subject to periodic updates.
Operators may be required to provide evidence of sufficient capital or financial guarantees to ensure the viability of their operations and the protection of player funds.
Failure to pay licensing fees or maintain required financial standards can result in suspension or revocation of the license.
Key Requirements for Obtaining and Maintaining a License
Strict compliance with all provisions of the Gaming Ordinance and related regulations.
Implementation of robust anti-money laundering measures and cooperation with regulatory authorities in monitoring and reporting suspicious activities.
Maintenance of accurate records and submission of regular reports to the government as required by the license conditions.
Adherence to responsible gambling practices and player protection standards.
Immediate notification to authorities of any significant changes in ownership, management, or business operations.
Summary Table: Gambling Licensing System in Nauru
Aspect
Details
Types of Licenses
General gaming operator license (covers all gambling activities)
Application Process
Formal application to government, background checks, business details required
Duration
Typically 1 year, renewable
Renewal
Ongoing compliance review, payment of renewal fees
Eligibility
Financial stability, integrity, no criminal background
Costs/Fees
Set by government; payment required on application and renewal
Key Requirements
Compliance, AML measures, reporting, responsible gambling, notification of changes
Gambling Tax
Tax Rates for Gambling Operators in Nauru
As of the latest available information, Nauru does not have a dedicated, publicly specified taxation regime exclusively for gambling operators. There is no official documentation outlining specific tax rates for different types of gambling operations such as casinos, sports betting, or online gambling. The general business profits tax regime, introduced in 2014, applies broadly to businesses operating in Nauru, including gambling operators.
Type of Gambling Operation
Tax Rate
Basis for Taxation
All Gambling Operators
No specific gambling tax rate; subject to general business profits tax
Business profits (net income)
Basis for Taxation
Gambling operators are taxed on their business profits, not on gross gaming revenue (GGR) or turnover.
The taxable base is the net income derived from all business activities, including gambling operations.
Tax Reporting and Payment Requirements
Gambling operators must file annual business tax returns in accordance with Nauru’s general corporate tax rules.
Tax payments are due as specified in the general tax legislation, with no separate procedures for gambling businesses.
Operators are expected to maintain accurate records of all income and expenses for tax reporting purposes.
Tax Incentives, Exemptions, and Special Provisions
There are no publicly available tax incentives or exemptions specifically for gambling operators in Nauru.
No special provisions or reduced rates apply to gambling activities under the current tax framework.
Prohibited Individuals
Age Restrictions
Nauru imposes a minimum age requirement for participation in gambling activities. Only individuals who have reached the legal age—typically 18 years or older—are permitted to engage in gambling. Operators are required to verify the age of all players through identification checks before allowing participation to ensure compliance with this restriction.
Identification Requirements
Players must present valid identification to confirm their age and identity before being allowed to participate in any gambling activities.
Operators are responsible for implementing procedures to verify the authenticity of identification documents and to prevent underage gambling.
Prohibited Activities and Game Restrictions
Unlicensed gambling operations are strictly prohibited; only licensed operators may offer gambling services.
Specific types of gambling activities may be restricted or prohibited under the Gaming Ordinance, such as certain casino games or betting formats, though detailed lists of banned games are not publicly specified.
Online gambling remains a legal gray area, and operators must adhere to any restrictions outlined by regulatory authorities, especially regarding cross-border or unregulated online platforms.
Advertising and Marketing Limitations
Advertising of gambling services is subject to restrictions to prevent targeting of minors and vulnerable individuals.
Marketing materials must not depict gambling as a means to solve financial problems or promote excessive or irresponsible gambling behavior.
Operators are prohibited from making misleading claims about odds, chances of winning, or potential rewards.
All advertising must include clear information about age restrictions and responsible gambling resources.
Responsible Gambling and Player Protection Measures
Operators are required to provide information and resources on responsible gambling to all players, including signage and access to support services.
Self-exclusion options must be available, allowing players to voluntarily ban themselves from gambling venues or platforms.
Measures must be in place to identify and assist players exhibiting signs of problem gambling, including staff training on intervention and referral procedures.
Operators must ensure the protection of player funds and personal data, with strict protocols to prevent misuse or unauthorized access.
Geographic and Location Restrictions
Gambling venues are only permitted to operate in approved locations as designated by authorities.
There are restrictions on the proximity of gambling venues to schools, religious institutions, and other sensitive locations to minimize exposure to vulnerable populations.
Online gambling services must not be offered to jurisdictions where such activities are prohibited by law.
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Timeline
Year/Date
Event
1998
Gaming Ordinance adopted, establishing the primary legal framework for gambling regulation in Nauru.
2004
Amendments introduced to the Gaming Ordinance, updating licensing requirements and penalties for non-compliance.
2014
Implementation of broader financial regulations, including taxation regimes for personal and business income, impacting oversight of gambling-related financial activities.
2022
Adoption of the National Strategy for Anti-Money Laundering and Combating the Financing of Terrorism 2022-2025, introducing stricter controls relevant to gambling operators and financial transactions.
Requirements
Software Certification and Technical Standards
Gambling operators in Nauru must ensure that all gaming software used in their operations is certified for fairness and randomness by an independent testing laboratory recognized by the relevant authorities.
Gaming systems must comply with technical standards that guarantee the integrity and security of games, including the use of certified Random Number Generators (RNGs) and regular testing for compliance with published standards.
Operators are required to implement robust system security measures to prevent unauthorized access, manipulation, or tampering with gaming software and data.
Data Protection, Privacy Measures, and Server Location Requirements
Operators must implement data protection protocols to safeguard personal and financial information of players, including encryption of sensitive data both in transit and at rest.
Strict privacy policies must be in place to ensure the confidentiality of player information and compliance with applicable data protection laws.
There may be requirements for gaming servers to be located within Nauru or in approved jurisdictions to ensure regulatory oversight and data security, although specific server location mandates should be verified with the latest regulatory guidance.
Anti-Money Laundering (AML) and Know Your Customer (KYC) Procedures
Operators are obligated to implement comprehensive AML policies, including customer due diligence, ongoing monitoring of transactions, and reporting of suspicious activities to the relevant authorities.
KYC procedures must be strictly enforced, requiring verification of player identity, age, and source of funds prior to allowing participation in gambling activities.
Operators must retain records of customer identification and transaction history for a specified period, as required by national AML regulations.
Financial Reporting, Auditing Standards, and Record-Keeping Requirements
Operators must maintain accurate and up-to-date financial records, including detailed logs of all transactions, bets, payouts, and player account balances.
Regular financial reporting to regulatory authorities is required, including the submission of audited financial statements prepared in accordance with recognized international accounting standards.
Operators are required to keep all records related to gaming operations, financial transactions, and customer activity for a minimum period specified by law, to facilitate regulatory review and audits.
Technical Implementation Requirements for Responsible Gambling Tools
Gaming platforms must provide technical tools that enable players to set deposit, loss, and session limits, as well as self-exclusion options.
Operators are required to implement real-time monitoring systems to detect and address problematic gambling behavior, including automated alerts and intervention protocols.
Information and access to responsible gambling resources must be prominently displayed and easily accessible on all gaming platforms.
Gambling regulations are subject to change. The information provided on this page was accurate at the time of publication, but may not reflect the current regulatory landscape. Always consult official sources for the most up-to-date information before making any gambling-related decisions.
