Jersey

Overview

Jersey, which was included on the OECD white list in 2009, presents a compelling case as an online gaming jurisdiction.

The island attracts online gambling companies seeking new licences and offers a safe harbour for their servers in a tax neutral location. There’s also the quality of lifestyle that it offers - the island claims to be the warmest place in the British Isles.

Technically Jersey is part of the British Isles, yet mainland Britain lies nearly 100 miles to the north while the coast of France can be seen just 12 miles away. You can also see the other Channel Islands to the north. Jersey is the largest of the group, with 94,000 residents and a land area of 45 square miles with its capital, St. Helier, home to more than half the population.

Comparatively new to i-gaming it might be, but Jersey has a considerable global reputation. It is indisputably the leading offshore financial services centre in the world, meaning that some of the most reputable legal and financial companies have a base there and that countless wealthy individuals and corporations take advantage of its competitive tax regime.

For online gambling companies wishing to locate or even re-locate there, Jersey ticks many boxes. No corporate taxes, no gambling taxes and personal tax for any management relocated to the island of just 20 per cent.

Although there are restrictions on staff coming to the island, they are lifted for essential expertise connected with companies investing in Jersey. Disaster recovery services are in place and data storage capacity has been increased in anticipation of an influx of business.

The gambling commission offers careful but fair scrutiny, telecommunications are superb and there are direct flights from its airport to more than 30 European locations. The island authorities are full of enthusiastic welcome for inward investment from i-gaming companies; and the island offers a lifestyle considerably more comfortable than many of its rivals.

A very aggressive but totally professional approach gave Jersey an early coup or two - the Gaming Regulators’ European Forum went to Jersey for its annual conference in June 2011, which is a considerable endorsement of the island; and a team of 28 lawmakers, gambling commissioners and leading businesses from the island went to Israel to meet some of the world’s major online gambling moguls and present the island’s case.

The island’s business community appears to consider itself late into the market, but in reality the global market in online gambling has a long way to go to reach maturity. It might therefore be prudent to replace ‘late’ with ‘later’ and by being later the island can offer the newest set of regulations. And that means everything everyone else has offered, plus some elements of its own.

Licences

B2C:
A Remote Gambling Operators Licence is required for B2C gambling from Jersey. For a licence to be granted the applicant must have a company on the Island, in addition to which, data covering player transaction and game outcomes must be held in Jersey. Applicants have the opportunity to use corporate services providers, including some which are also holders of Personal Gambling Licences, and therefore may sit as directors who make decisions affecting the company. If an operator is using game content from a provider that is not licensed by the Jersey Gambling Commission a licence condition will be placed on the applicant to ensure that the content meets the Commission’s guiding principles.

An application fee of £5000 covers the cost of assessing an application for a licence.

A licence lasts for five years with a £15000 annual licence fee. There is a £250 charge for amendments to a licence.

B2B:
A Platform Providers Permit is required to offer B2B services, either hardware or software, from Jersey. For a permit to be granted the applicant must have a company on the Island, with the Commission agreeing the services provided from within Jersey on a case-by-case basis.

An application fee of £5000 covers the cost of assessing an application for a permit.

A permit lasts for five years with a £10000 annual fee. There is a £250 charge for amendments to a permit.

Other services:

Operators licenced in a jurisdiction that has a Memorandum of Understanding with the Jersey Gambling Commission – the Isle of Man, Malta or Denmark – may place disaster recovery systems in Jersey. A licence is required but there is no fee – licences last for up to five years. The operator will have to demonstrate to the Commission that the DR systems are held in a facility that holds a Jersey Hosting Services Providers Permit, and that data comes in but is not transmitted onwards. The Commission will have to be notified within 24 hours if the system is activated, and it may only remain activated for 14 days of continuous use.

Mirroring and Load-Balancing Services Operators licenced in a jurisdiction that has a Memorandum of Understanding with the Jersey Gambling Commission – the Isle of Man, Malta or Denmark – may place Mirroring and Load Balancing Services in Jersey. A licence is required. The application fee is £500, and the annual fee is £5,000. Licences last for up to five years. The operator will have to demonstrate to the Commission that the Mirroring and Load-Balancing Services are held in a facility that holds a Jersey Hosting Services Providers Permit, and in the event of a disaster that prevents the home hosting services from operating, the Jersey servers can operate alone for a period of 14 days. While operating normally the home regulator remains responsible for the gambling operation but will share relevant data with the Commission in accordance with the licence.

Services

Companies involved in Jersey’s e-commerce industry point out that i-gaming is simply a facet of the same thing, with the same disciplines and same processes.

They can offer an incoming remote gambling business a full package of support from licence application to guidance through every stage of the processes of setting up a company, appointing directors, finding and staffing offices, equipping it and managing its accounts.

A turnkey operation can be ready even before the licence application can be approved. And the commission – headed by individuals with a wealth of experience in the gaming industry – minimises due diligence requirements for those who have successfully applied for and held licences in other jurisdictions.

Tax

0 per cent VAT.

0 per cent eGaming duty.

0 per cent corporation tax.

Contact

Jersey Gambling Commission
2nd Floor Salisbury House,
1 - 9 Union Street,
St. Helier, Jersey,
Channel Islands
JE2 3RF

T: +44 (0)1534 828 540
E: [email protected]

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