At just 93 square kilometers, the island of Nevis is not a particularly imposing jurisdiction, but it has caught the attention of the iGaming world, after launching its new Online Gaming Bill in April of this year. Interest is peaking, but what are its advantages?
For one, what were once seen as industry go-tos have taken a hit recently. Curacao introduced a new Responsible Gaming Policy and operators have to undergo a new approval for their licenses under the new LOK regime.
The Isle of Man has taken a reputational beating and has seen multiple companies choose to switch to new jurisdictions.
Malta, while still highly attractive, is expensive.
And other jurisdictions – such as Vanuatu, Anjouan and Timor-Leste – are not able to provide the same Tier-1 offering that Nevis is promoting, with a special highlight on the fact that it is not on the Financial Action Task Force (FATF) grey list.
What is attractive?
For Gilad Oren, CEO of GBO International Financial Services, certain elements come to the forefront.
“Nevis stands out because it has no gross gaming revenue (GGR) tax”. Operators pay an annual license fee of EU28,000 ($33,000), “with no extra gaming or corporate taxes for offshore operators. In comparison, Malta charges up to 5 percent on GGR, the Isle of Man applies a sliding GGR tax from 0.1 percent to 1.5 percent, and the new Curacao system includes GGR-based taxes as well”.
Oren indicates that this “makes Nevis a much more cost-effective and predictable option”.
Predictable is good, especially when it comes to timelines for setup.
“Nevis is doing much better than Vanuatu. Licenses are being processed within the expected eight to 12 weeks, and the system is running smoothly […] To maintain its position as a Tier 1, golden-standard jurisdiction, Nevis is making sure every step is done right, without cutting corners”.
While Oren opines that Nevis could “become a top gaming hub in the next 1-2 years if it keeps working well and builds trust,” there is still always a period of growing pains. However, “Nevis was well-prepared before the law went live. The licensing process, support systems, and internal structure are all in place and functioning well”. And he assures that “the authority is handling applications and inquiries professionally”.
Interest from Asia
“Asian gaming companies, both B2B providers and operators, are often early adopters of new developments in the industry, including new licensing jurisdictions. This is exactly what we saw with Curacao about 10 years ago and more recently with Anjouan. The same trend is now happening with Nevis,” notes Oren.
This has resulted in “high demand from Asian clients” who want to get in early on a “well-structured and trusted jurisdiction”.
Oren indicates that his recent forays in Asia have shown interest from the company’s established client base in South Korea, Japan, India, and China. But he’s “also seen growing interest from Indonesia and Malaysia.” However, he notes that he has seen “a certain decrease in activity from the Philippines,” even as “interest across the region remains very strong”.
What do companies get?
Nevis is offering licenses for both B2B and B2C companies, with a one-year duration for the overall license. This license is extendable.
For B2C this covers operators, casinos, sportsbooks, and betting sites. For B2B this encompasses platforms, white-label providers, game studios, software suppliers, and other critical gaming service providers.
Oren indicates that “both B2C and B2B companies are showing a lot of interest”.
“As Nevis gains more recognition in the industry, we’re seeing parallel growth – both types of licenses are being adopted at the same time, each for their specific needs. This balanced interest shows that the jurisdiction is building a solid foundation for all sides of the gaming ecosystem,” indicates the executive.
Interested operators still need to have a locally registered company, have due diligence checks on shareholders, have each of the two initial URLs under the license be owned by the license holder, and submit documentation such as compliance, business plans, responsible gaming policies etc.
The jurisdiction also aims to keep its clean FATF status by excluding operators from providing their product in certain markets, including those blacklisted by the FATF.
Given how recently the legislation was passed, it will be some time to see how quickly iGaming companies gravitate to the new jurisdiction, and if any problems come up that could shunt its growth. However, for now, its outcome appears promising.
