Regulatory AuthorityInspectorate General of Gaming (IGJ)
License CostVaries
Regulation by Activity Type
Casinos
Prohibited
Online Casinos
Partially Regulated
Betting
Partially Regulated
Online Betting
Partially Regulated
Lotteries
Partially Regulated
Poker
Partially Regulated
Highlights
Timor-Leste legalized offshore online gambling in April 2025, issuing its first license to Golden River Universe.
The Inspectorate General of Gaming (IGJ) is the main regulatory authority overseeing gambling operations.
Licenses are export-oriented: operators must block Timor-Leste residents and only target international players.
The licensing framework enables multi-product operations, covering casino, sports betting, lottery, and skill games.
Operators must be locally incorporated, with physical presence and investment commitments in Timor-Leste.
The regulatory model is designed to attract foreign investment and diversify the national economy.
Taxation and compliance standards are modeled on leading international jurisdictions, offering competitive conditions.
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Legislation
Primary Legislation
The principal legal framework governing gambling in Timor-Leste is established by Decree-Law No. 6/2016, which sets out the legal regime for the operation and regulation of gambling and entertainment activities. This statute provides the foundational structure for the authorization, supervision, and control of gambling activities, including lotteries, games of chance, and other forms of gaming. The regulation covers both land-based and online gambling, with recent legislative developments enabling the licensing of offshore online gambling operators. The law is designed to ensure that all gambling activities are conducted within a regulated and controlled environment, with clear definitions of permitted activities and the scope of legal gambling operations.
Regulatory Authority
Oversight and enforcement of gambling legislation in Timor-Leste are the responsibility of designated government authorities. These bodies are charged with ensuring compliance with the legal regime, monitoring gambling operations, and safeguarding the integrity of the sector. Their core responsibilities include:
Supervising and regulating all authorized gambling activities within Timor-Leste
Granting, suspending, or revoking gambling licenses in accordance with the law
Ensuring that gambling operations comply with established legal and technical standards
Implementing measures to prevent illegal gambling and protect the public interest
License Types
Types of Gambling Licenses Available
Offshore Gaming License: Timor-Leste offers a comprehensive offshore gaming license that covers a wide range of online gambling activities. This includes casino gaming (slots, table games, live dealer), sports betting (fixed-odds and exchange), online lottery, bingo, keno, poker, and skill games. The license is designed for multi-product operations, allowing operators to run a full iGaming portfolio under a single umbrella license, with specific activity endorsements listed on the license certificate as needed.
Application Process
Regulatory Authority: The Inspectorate General of Gaming (IGJ) is the primary body responsible for issuing and overseeing gambling licenses in Timor-Leste.
Initial Steps: Applicants must submit a detailed application to the IGJ, including business plans, technical documentation, and proof of compliance with regulatory requirements.
Local Incorporation: Operators are required to establish a local company in Timor-Leste. This ensures a legal presence and facilitates regulatory oversight.
Due Diligence: The application process includes thorough background checks on company directors, shareholders, and key personnel to ensure suitability and integrity.
Approval Timeline: The process typically takes several months, depending on the completeness of the application and the results of due diligence checks.
License Duration, Renewal, and Eligibility
License Duration: Offshore gaming licenses are generally issued for a multi-year period, commonly 5 to 10 years, with the possibility of renewal upon meeting all regulatory requirements.
Renewal Conditions: Licensees must demonstrate ongoing compliance with operational, technical, and financial standards. Renewal applications should be submitted before the current license expires, accompanied by updated documentation and compliance reports.
Eligibility: Only companies incorporated in Timor-Leste and meeting the IGJ’s suitability criteria (fit and proper checks, financial stability, technical capability) are eligible to apply.
Licensing Costs, Fees, and Financial Requirements
Application Fee: A non-refundable application fee is required upon submission. The amount is relatively low compared to other jurisdictions, reflecting Timor-Leste’s strategy to attract international operators.
Annual License Fee: Licensed operators must pay an annual fee to maintain their license. This fee is set at a competitive rate to encourage investment and is typically structured to scale with the size or scope of operations.
Financial Commitments: Operators may be required to demonstrate a minimum level of capital investment and maintain sufficient financial reserves to ensure player protection and operational stability.
Investment Requirements: For major projects, such as the development of gaming hubs or integrated resorts, the government may negotiate additional investment commitments as part of the licensing agreement.
Key Requirements for Obtaining and Maintaining a License
Technical Standards: Licensed operators must implement robust technical systems, including certified random number generators (RNGs), secure payment processing, and effective player protection measures.
Compliance and Reporting: Regular reporting to the IGJ is mandatory, covering financial performance, player activity, anti-money laundering measures, and technical audits.
Geographical Restrictions: Offshore licensees are prohibited from accepting players residing in Timor-Leste. The license is strictly export-oriented, targeting international markets only.
Responsible Gambling: Operators must have policies and tools in place to prevent problem gambling and protect vulnerable players, in accordance with IGJ guidelines.
Ongoing Suitability: Companies must maintain their suitability status, including the integrity of key personnel and continued compliance with all regulatory obligations.
Timor-Leste’s gambling taxation system is designed primarily for offshore operators targeting international markets. The system is newly established, with the first offshore gaming license issued in April 2025. The following table summarizes the available tax rates for different types of gambling operations:
Type of Gambling Operation
Tax Rate
Tax Base
Online Casino
2%–5%
Gross Gaming Revenue (GGR)
Sports Betting
2%–5%
Gross Gaming Revenue (GGR)
Lottery & Bingo
2%–5%
Gross Gaming Revenue (GGR)
Poker & Skill Games
2%–5%
Gross Gaming Revenue (GGR)
The exact rate within the 2%–5% range depends on the specific agreement reached with the Inspectorate General of Gaming (IGJ) and the details of the operator’s license. All taxes are calculated on gross gaming revenue, which is defined as the total amount wagered minus the winnings paid out to players.
Basis for Taxation
Gambling taxes in Timor-Leste are levied on Gross Gaming Revenue (GGR).
No turnover-based or other alternative tax bases are currently specified for offshore operators.
Tax Reporting and Payment Procedures
Operators are required to submit monthly tax returns detailing their GGR and the corresponding tax due.
Tax payments must be made to the designated government account by the 15th day of the month following the reporting period.
All records, including player activity and financial transactions, must be maintained and made available for inspection by the Inspectorate General of Gaming (IGJ).
Failure to report or pay taxes on time may result in penalties, suspension, or revocation of the gambling license.
Tax Incentives, Exemptions, and Special Provisions
There are no explicit tax exemptions for offshore gambling operators; all licensed operators are subject to the standard GGR-based tax.
Timor-Leste’s government may offer negotiated incentives for large-scale investments, such as reduced rates or initial tax holidays, as part of broader economic development agreements. These are determined on a case-by-case basis and must be formalized in the operator’s concession contract.
No local player activity is permitted under the offshore license, so all tax is generated from international operations only.
Timor-Leste’s gambling taxation regime is structured to be competitive and attractive to international operators, with low rates and straightforward GGR-based calculations. The system is new and may evolve as the market develops, but currently prioritizes transparency and ease of compliance for offshore licensees.
Prohibited Individuals
Age Restrictions and Identification Requirements
For offshore gambling operations licensed in Timor-Leste, local residents are strictly prohibited from participating. As such, age verification and identification requirements are focused on ensuring only eligible foreign players can access these platforms.
Operators must implement robust identification and geolocation systems to verify that players are not residents of Timor-Leste and are of legal gambling age according to the laws of their respective jurisdictions.
Standard international practices require operators to verify the age and identity of all players, typically through government-issued identification and electronic verification tools, to prevent underage gambling and ensure compliance with target market regulations.
Prohibited Activities and Game Restrictions
Timor-Leste’s offshore gambling licenses are strictly export-oriented. All forms of online gambling offered under these licenses—including casino games, sports betting, lottery, bingo, and poker—are prohibited for Timor-Leste residents.
Operators must block access from Timor-Leste IP addresses and are not permitted to market or provide gambling services to citizens or residents of Timor-Leste.
Other prohibited activities may include offering gambling services in jurisdictions where such activities are illegal, as operators must comply with the laws of each target market.
Advertising and Marketing Limitations
Advertising and marketing of offshore gambling services are not allowed within Timor-Leste, either online or offline.
Operators are required to ensure that their marketing materials and campaigns do not target Timor-Leste residents or appear in local media channels.
Any breach of these restrictions, such as promoting gambling to Timor-Leste citizens, could result in penalties or revocation of the license.
Responsible Gambling Requirements and Player Protection Measures
Operators must implement responsible gambling measures in line with international standards, including self-exclusion tools, deposit limits, and access to responsible gambling resources for players in permitted jurisdictions.
Strict anti-money laundering (AML) and know-your-customer (KYC) procedures are required to protect players and prevent criminal activity.
Operators must provide clear information on the risks of gambling and offer support for problem gambling, but these protections are focused on foreign players, as Timor-Leste residents are excluded from participation.
Geographic and Location Restrictions
Offshore gambling licenses issued by Timor-Leste are valid only for international operations. Gambling services must not be provided to individuals located within Timor-Leste.
Operators are required to use geolocation technology to block access from Timor-Leste and any other restricted jurisdictions.
Physical gambling venues and online platforms licensed under the offshore regime are not permitted to serve the domestic market in any form.
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Timeline
Year/Date
Event
2019
Timor-Leste begins initial discussions and planning to diversify its economy, including exploring regulated gambling as a potential sector.
August 2024
Memorandum of understanding signed between the government of Oecusse Ambeno (Timor-Leste’s Special Administrative Region) and Golden River Universe Lda (GRU) to develop an offshore gambling hub.
February 2025
Timor-Leste government approves the development of its first casino resort, signaling formal support for regulated gambling activities.
April 2025
Timor-Leste launches its first official offshore gaming license, establishing a regulatory framework for international online gambling operators.
April 2025
First offshore gambling license awarded to Golden River Universe Lda (GRU), marking the operational start of the country’s regulated offshore gambling sector.
Requirements
Software Certification and Technical Standards
All gaming software used by licensed operators must undergo independent certification to ensure fairness, randomness, and compliance with international gaming standards.
Games and platforms must be tested and certified by approved third-party testing laboratories recognized by the Inspectorate General of Gaming (IGJ).
Technical standards are modeled after established international frameworks, similar to those used in Malta and other reputable jurisdictions, covering RNG integrity, payout percentages, and system security.
Operators must implement robust systems for real-time monitoring, reporting, and auditing of all gaming activities.
Data Protection, Privacy Measures, and Server Location Requirements
Operators are required to implement strong data protection protocols in line with international best practices for privacy and cybersecurity.
Personal and financial data of players must be encrypted both in transit and at rest, using industry-standard encryption methods.
Access to sensitive player data must be restricted to authorized personnel only, with detailed access logs maintained for audit purposes.
Operators must ensure that gaming servers and backup systems are located in secure environments, with physical and digital safeguards against unauthorized access, tampering, or data loss.
There is flexibility regarding the physical location of servers, but operators must guarantee that all data is accessible to the IGJ for compliance checks and investigations.
Anti-Money Laundering (AML) and Know Your Customer (KYC) Procedures
Operators must implement comprehensive AML programs, including transaction monitoring, suspicious activity reporting, and ongoing risk assessments.
Mandatory KYC procedures require verification of player identity, age, and source of funds before allowing access to gambling services.
Operators must collect, verify, and securely store identification documents and conduct enhanced due diligence for high-risk or high-value transactions.
Ongoing monitoring of player activity is required to detect and report unusual or potentially illicit behavior to the relevant authorities.
Financial Reporting, Auditing Standards, and Record-Keeping Requirements
Operators are obligated to maintain detailed financial records of all transactions, including player deposits, withdrawals, bets, and payouts.
Regular financial reporting to the IGJ is mandatory, with reports prepared in accordance with international accounting standards.
Annual independent audits of financial statements and gaming systems are required to ensure transparency and compliance.
Operators must retain all records related to gaming transactions, player accounts, and compliance activities for a minimum period specified by the regulator, typically at least five years.
Technical Implementation Requirements for Responsible Gambling Tools
Operators must integrate responsible gambling tools into their platforms, including self-exclusion options, deposit and loss limits, and reality checks.
Systems must allow players to set personal limits and opt for temporary or permanent self-exclusion, with immediate enforcement upon request.
Automated monitoring systems must detect signs of problematic gambling behavior and trigger interventions or notifications as required by the IGJ.
Responsible gambling features must be prominently displayed and easily accessible on all gaming interfaces.
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.
