Vanuatu’s iGaming industry, a small nation’s big ambition
Vanuatu’s gaming industry is on the rise, with a regulatory environment that attracts diverse operators. Macyn White, CEO of the Vanuatu Gaming Authority, anticipates a surge in interest due to the country’s focus on customer protection, fair play, and operational flexibility. In a conversation with him, SiGMA News explored the future of the gaming industry in Vanuatu.
The Pacific island nation has revamped its licensing framework, attracting international iGaming companies, startups, and established operators seeking a cost-effective licensing environment. This aligns with Vanuatu’s Interactive Gaming Act, passed in 2000, which has been updated to keep pace with the evolving gaming landscape.
White said, “We anticipate a wide range of operators will be attracted to obtain a licence in Vanuatu, including international iGaming companies looking to expand into pre-regulated markets, innovative startups, and established operators seeking a cost-effective and efficient licensing environment.”
White foresees a sharp initial surge in interest from operators due to reduced costs and the efficiency of their online application process. The new licensing framework, launched in July 2024, allows for a fully online application process, enhancing efficiency and attracting global operators.
Under White’s leadership, Vanuatu is aiming to become a global leader in the gaming industry. The country offers a straightforward online application process, a competitive tax rate of 1 percent on Wagering Activity, and reduced application and annual fees.
White’s vision is to establish Vanuatu as a leading and respected gaming jurisdiction globally, balancing rigorous regulatory standards with the freedoms and incentives that attract top-tier operators. This is an ambitious goal and obviously it is not going to be an easy feat. The new licensing framework introduces an entirely online application system, reduced application and annual licence fees, and a 1 percent Wagering Activity tax. The Vanuatu Interactive Gaming Licence (VIGL) covers all common gaming verticals and is valid for 15 years from the date of issuance. “Additionally, our competitive tax rate of 1 percent on Wagering Activity and the dramatically reduced application and annual fees make Vanuatu an extremely attractive jurisdiction.” he explains.
White explained how the new application process aims to cut down processing times while ensuring sufficiently strict background checks on all applicants. “The purely online system allows for quicker data processing and review while maintaining rigorous background checks through advanced digital verification methods,” he said. “Additionally, our regulator, the Director of Customs and Inland Revenue, works closely with the Financial Intelligence Unit, ensuring compliance with international AML/CTF standards. This collaboration ensures that all applicants are vetted properly without compromising on the speed of the application process.”
White shared, “The Vanuatu Department of Customs and Inland Revenue plays a crucial role in the new framework by overseeing the financial aspects of the licensing process. This includes the collection of fees and taxes and ensuring compliance with Vanuatu’s financial regulations. Their involvement ensures that the economic benefits of the iGaming industry are accurately accounted for and contribute positively to the national economy. Additionally, they work alongside the Financial Intelligence Unit and the VGA to ensure that no bad actors are licensed out of Vanuatu, maintaining international standards of AML/CTF compliance.”
Interactive gaming licence for B2C operators
We moved on to explore how the new Vanuatu Interactive Gaming License caters to B2C operators and the balance between compliance requirements and the freedoms of the licensees.
When asked about how the new B2C licence, White explained, “The VIGL is specifically designed to cater to B2C operators by providing a regulatory environment that supports direct interaction with consumers. This includes ensuring that the operators adhere to high standards of customer protection, responsible gaming practices, and fair play. The license framework is flexible enough to accommodate various types of B2C operations, from online casinos to sports betting platforms, making it an attractive option for operators in this sector.”
On the topic of compliance requirements and how the new framework balances these with the freedoms of the licencees, White explained that the “iGaming industry operates under strict compliance requirements that ensure the integrity and fairness of games, the protection of player data, and the prevention of fraud and money laundering. Our new framework maintains these high standards while also offering greater flexibility and reduced costs for operators. By implementing advanced digital compliance monitoring tools, we can enforce regulations effectively without imposing undue burdens on licensees.”
These insights highlight the delicate balance that Vanuatu has struck between maintaining high regulatory standards and offering flexibility to operators. By leveraging advanced digital tools, the country may find it less arduous to enforce regulations effectively while reducing costs and burdens for operators.
Certainly, this approach signifies a forward-thinking strategy that utilises technology to develop the iGaming sector in Vanuatu, a small island nation that might not yet be on everyone’s radar. Yet, its size does not need to limit its potential. For example, the success of Malta, despite being only a quarter of Vanuatu’s size, in establishing itself as a notable iGaming jurisdiction, shows that size does not dictate success in this industry.
SiGMA News spoke with Macyn White, CEO of Vanuatu Gaming Authority. Before taking on his current role at the Gaming Authority, White was Chief Operating Officer of Aleria Media Pty and Cio and Head of Innovation for Latrotech Limited.
Macyn White on the left
SiGMA East Europe Summit powered by Soft2Bet, will take place in Budapest from 2-4 September 2024
