Vanuatu legalized and regulates both land-based and online gambling, with a focus on iGaming since 2024 reforms.
Licenses are issued by the Vanuatu Gaming Authority and are valid for 15 years, covering multiple gambling verticals.
Operators must incorporate a local company, appoint a local director, and maintain a local office in Vanuatu.
A 1% Wagering Activity Tax on Gross Gaming Revenue applies to licensed operators under the current regime.
The licensing package typically includes two domains as standard, supporting international online operations.
Strict AML and CTF compliance is required, including registration with the Financial Intelligence Unit and VIPA.
System audits, technical security, and mechanisms to protect minors are mandatory for all licensed operators.
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Legislation
Primary Legislation
Vanuatu’s gambling sector is governed by a framework of modernized legislation designed to regulate both land-based and online gambling activities. The primary legal instruments include:
Vanuatu Interactive Gaming Act: This is the core statute regulating online gambling operations within Vanuatu, establishing the legal foundation for interactive gaming and setting out the requirements and standards for operators.
Consolidated Anti-Money Laundering and Counter-Terrorist Financing Act No. 13 of 2014: This law imposes obligations on gambling operators to implement robust anti-money laundering (AML) and counter-terrorist financing (CTF) measures, ensuring financial security and integrity within the gaming sector.
Other Relevant Local Laws: Additional statutes and regulations may apply to ensure the protection of minors, technical and financial security, and overall accountability in the gambling industry.
Recent updates to the legislative framework have focused on enhancing regulatory oversight, streamlining processes, and aligning Vanuatu’s gambling laws with international best practices, particularly in the area of online gambling.
Regulatory Authority
Oversight and enforcement of gambling legislation in Vanuatu are carried out by dedicated regulatory bodies:
Vanuatu Gaming Authority (VGA): The VGA is responsible for processing gambling license applications, monitoring compliance, and ensuring that operators adhere to the legal requirements set out in the primary legislation.
Vanuatu Department of Customs and Inland Revenue: This department serves as the principal regulator for the gambling sector, overseeing all gambling activities, ensuring compliance with laws, and maintaining strict oversight of the industry.
These authorities work together to maintain a transparent, accountable, and secure gambling environment in Vanuatu, with clear mandates for regulatory supervision and enforcement.
License Types
Types of Gambling Licenses in Vanuatu
Interactive Gaming License (VIGL): The primary license currently available is the Vanuatu Interactive Gaming License, designed for business-to-consumer (B2C) operators. It covers a broad range of online gambling activities, including online casinos, sports betting, poker, and other gaming verticals.
Business-to-Business (B2B) License: While not yet available, Vanuatu has announced plans to introduce a B2B license to serve platform providers and software suppliers in the near future.
Application Process
Online Portal: All license applications are submitted online through a dedicated portal managed by the Vanuatu Gaming Authority (VGA), streamlining the process and reducing processing times.
Regulatory Oversight: The Vanuatu Gaming Authority (VGA) processes applications, while the Department of Customs and Inland Revenue acts as the sector regulator.
Documentation: Applicants must provide comprehensive documentation, including company incorporation papers, details of beneficial owners, business plans, technical system descriptions, and anti-money laundering (AML) policies.
Background Checks: All applicants and key personnel undergo strict background and fit-and-proper checks.
Processing Time: The streamlined online process has significantly reduced the time required for application review and approval.
License Duration and Renewal
Validity Period: The Interactive Gaming License is valid for 15 years from the date of issuance, providing long-term operational certainty for licensees.
Renewal: Annual renewal is required, subject to payment of the annual fee and continued compliance with regulatory requirements.
Eligibility and Key Requirements
Corporate Structure: The applicant must be a registered company in Vanuatu. Foreign ownership is permitted, but the company must maintain a local registered office and appoint a local representative.
Financial Stability: Applicants must demonstrate sufficient financial resources to operate and maintain the gambling platform.
Technical Systems: Operators must implement secure gaming systems, undergo system audits, and ensure technical measures to protect player data and prevent underage gambling.
AML and Player Protection: Strict anti-money laundering and counter-terrorist financing measures must be in place, alongside robust mechanisms for player protection and responsible gaming.
Ongoing Compliance: Licensees must submit regular reports, undergo compliance audits, and promptly address any regulatory concerns raised by the VGA or Department of Customs and Inland Revenue.
Licensing Costs and Financial Requirements
Fee Type
Amount
Frequency
Application Fee
€5,000
One-time, upon application
Annual License Fee
€10,000
Yearly, for each year of the 15-year term
Other Financial Requirements: Operators may be required to maintain a minimum level of paid-up share capital and provide evidence of sufficient operating funds, as determined during the application review.
Online submission via VGA portal; documentation and background checks required
License Duration
15 years
Renewal
Annual, with fee and compliance review
Application Fee
€5,000 (one-time)
Annual License Fee
€10,000
Eligibility
Vanuatu-registered company; foreign ownership allowed; local office and representative required
Key Requirements
Financial stability, technical security, AML compliance, player protection, ongoing audits
Gambling Tax
Tax Rates for Gambling Operators in Vanuatu
Vanuatu applies a straightforward and highly competitive tax regime for gambling operators. The principal tax is a Wagering Activity Tax, calculated as a percentage of Gross Gaming Revenue (GGR). There are no corporate income taxes or value-added taxes (VAT) applied to gambling profits, making Vanuatu an attractive jurisdiction for operators.
Type of Tax
Basis
Rate
Notes
Wagering Activity Tax
Gross Gaming Revenue (GGR)
1%
Applies to all licensed gambling operators
Corporate Income Tax
Profit
0%
Exempt for gambling operators
Value Added Tax (VAT)
Turnover
0%
Exempt for gambling operators
Basis for Taxation
The main tax on gambling operators is levied on Gross Gaming Revenue (GGR), which is defined as the total amount wagered by players minus the total winnings paid out.
Tax Reporting and Payment Requirements
Operators must calculate the 1% Wagering Activity Tax based on their monthly GGR.
Tax payments are typically due on a regular basis, most commonly monthly, in accordance with the reporting schedule set by the Vanuatu Department of Customs and Inland Revenue.
Operators are required to submit detailed reports of their gaming revenues and tax calculations as part of their compliance obligations.
Failure to comply with tax reporting or payment deadlines may result in penalties or regulatory action.
Tax Incentives, Exemptions, and Special Provisions
Gambling operators in Vanuatu benefit from a full exemption from corporate income tax and VAT on gambling activities.
This exemption applies to both domestic and international operators licensed in Vanuatu.
There are currently no additional tax incentives or special deductions beyond the standard exemptions and the low Wagering Activity Tax rate.
Prohibited Individuals
Age Restrictions and Identification Requirements
Vanuatu enforces strict measures to prevent underage gambling. Operators are required to implement robust mechanisms to protect minors, which includes verifying the age and identity of all players before allowing participation in gambling activities. This typically involves requesting official identification documents and conducting electronic checks to ensure compliance with the minimum legal gambling age. The exact minimum age is commonly set at 18 years, and operators must ensure no minors can access their services.
Prohibited Gambling Activities and Game Restrictions
Operators must adhere to a list of approved gambling activities as defined by the regulatory authority. Any gambling products or games not explicitly permitted by the regulator are prohibited.
There are restrictions on offering games that may be considered particularly harmful or that target vulnerable groups, including minors.
Operators are required to comply with technical and financial security standards, which may include the prohibition of unlicensed or uncertified games.
Advertising and Marketing Limitations
Advertising and marketing of gambling services must not target minors or vulnerable individuals.
Promotional materials are required to include clear messages about responsible gambling and the risks associated with gambling.
There are restrictions on the placement and content of advertisements to ensure they are not misleading or encouraging irresponsible gambling behavior.
Operators may be required to submit advertising campaigns for regulatory review to ensure compliance with player protection standards.
Responsible Gambling Requirements and Player Protection Measures
Operators must provide clear and accessible information about responsible gambling, including tools for self-exclusion and setting deposit or loss limits.
Mechanisms must be in place to detect and prevent problem gambling, such as monitoring player behavior for signs of excessive or harmful gambling.
Operators are required to offer support and resources for players who may be experiencing gambling-related harm, including links to counseling and help services.
Regular system audits and compliance checks are mandated to ensure ongoing adherence to player protection requirements.
Geographic and Location Restrictions
Physical gambling venues are subject to location restrictions, which may include prohibitions on operating near schools, places of worship, or other sensitive areas.
Online gambling operators must ensure their services are not accessible in jurisdictions where gambling is prohibited or where they do not hold the necessary authorization.
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Timeline
## Historical Development of Gambling Regulation in Vanuatu Below is a concise timeline highlighting key events in the evolution of gambling regulations in Vanuatu:
Year/Date
Event
2014
Consolidated Anti-Money Laundering and Counter-Terrorist Financing Act introduced to enhance financial security and compliance in the gambling sector.
2024 (July)
Vanuatu unveiled a new online gambling licensing framework, aiming to streamline the licensing process and enhance regulatory oversight.
2024 (October)
Regulatory adjustments announced, emphasizing the role of the Department of Customs and Inland Revenue in overseeing the gambling sector.
**Additional Notes:** - **Early Regulation**: While specific early dates for gambling regulation in Vanuatu are not widely documented, the country has historically been known for its favorable environment for gambling operators. - **Recent Developments**: The updates in 2024 reflect Vanuatu's efforts to modernize its regulatory framework, ensuring compliance and transparency in the gambling industry.
Requirements
Software Certification and Technical Standards
All gaming software used by operators must be certified for fairness, randomness, and integrity by recognized independent testing laboratories.
Operators are required to implement robust technical security measures to ensure the integrity and reliability of their gaming systems.
System audits must be conducted regularly to verify compliance with technical standards and to detect any unauthorized modifications or vulnerabilities.
Technical mechanisms must be in place to prevent access by minors and unauthorized persons, including age verification and access controls.
Data Protection, Privacy Measures, and Server Location
Operators must ensure the security and confidentiality of customer data through the implementation of advanced encryption protocols and secure data storage solutions.
Strict privacy measures are required to prevent unauthorized access, disclosure, or misuse of player information.
There are requirements for maintaining servers in secure environments, though local server hosting within Vanuatu is not explicitly mandated; however, operators must guarantee that data is accessible to the regulator upon request.
Operators must comply with local regulations on data protection, ensuring that all data processing activities align with Vanuatu's privacy laws and international standards.
Anti-Money Laundering (AML) and Know Your Customer (KYC) Procedures
Operators are required to implement comprehensive AML and Counter-Terrorist Financing procedures in accordance with the Consolidated Anti-Money Laundering and Counter-Terrorist Financing Act No 13 of 2014.
Mandatory KYC checks must be conducted to verify the identity, age, and source of funds of all players before allowing participation in gambling activities.
Continuous monitoring of player transactions is required to detect and report suspicious activities to the Vanuatu Financial Intelligence Unit (FIU).
Operators must maintain detailed records of all KYC and AML processes and ensure staff are trained in these procedures.
Financial Reporting, Auditing Standards, and Record-Keeping
Operators must maintain accurate and up-to-date financial records, including all transactions, player balances, and gaming activity logs.
Regular financial reporting to the Vanuatu Gaming Authority (VGA) is required, with reports submitted in a prescribed format and frequency.
Annual independent audits of both financial and technical operations are mandatory to ensure transparency and compliance with regulatory standards.
All records, including player data and transaction histories, must be retained for a minimum period as specified by the regulator and must be readily accessible for inspection.
Responsible Gambling Tools and Technical Implementation
Operators must integrate technical tools that enable players to set deposit, loss, and session limits directly within the gaming platform.
Self-exclusion mechanisms must be available, allowing players to voluntarily restrict their access to gambling services for specified periods.
Systems must be in place to display responsible gambling messages and provide links to support organizations on all gaming interfaces.
Technical controls are required to detect and intervene in cases of excessive or problematic gambling behavior, including automated alerts and temporary account suspensions where necessary.
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.
