Comoros

Gambling License

Looking to start an online gambling business? The Comoros Gambling License, issued by the Anjouan Gaming Commission, offers a cost-effective, tax-free option with a fast application process. Here's a quick summary:

Key Highlights:

• Affordable Licensing: Initial fee of €39,750, with no taxes on Gross Gaming Revenue (GGR).

• Broad Coverage: Includes sports betting, casino games, lotteries, and more.

• Fast Processing: Applications are processed within 1 to 1.5 months.

• Requirements: Minimum capital of €250,000, local representative, and adherence to anti-money laundering (AML) rules.

• License Types: Choose between B2C (for direct consumer services) or B2B (for services to operators).

Pros and Cons:

Renewal:

• Annual renewal fee: €13,300.

• Submit updated compliance documents 2-3 months before expiration.

This license is ideal for international operators seeking a low-cost, business-friendly jurisdiction. However, strict compliance is essential to maintain the license.

About Comoros Gambling License

Main License Features

The Comoros gambling license, governed by the Computer Gambling Act of 1999 and the Betting and Gaming Act 2005, provides a structured framework for online gaming businesses. It is known for its broad coverage and operator-friendly terms.

Here’s a quick overview of its key features:

This license combines flexibility with essential regulatory measures. Operators can add more domains for an annual fee, making it easier to grow their online presence.

Licensing Authority

The Anjouan Offshore Finance Authority (AOFA) is responsible for balancing operational freedom with regulatory oversight. Through the Anjouan Gaming Commission, it monitors all licensed gambling activity.

The commission enforces AML rules, conducts background checks, manages license renewals, and ensures compliance with technical standards. With processing times typically between 1 to 1.5 months, it’s an appealing option for small to medium-sized operators.

License holders are required to maintain a solid compliance program and submit regular financial reports. This approach allows businesses to operate freely while upholding industry standards and safeguarding players.

License Requirements

Company Setup Rules

To start a gambling operation in Comoros, businesses need to register as an International Business Company (IBC) in Mwali. This setup ensures compliance with regulatory standards while taking advantage of the jurisdiction's business-friendly environment.

Required Documents and Funds

To apply for a license, operators need the following key documents:

All documents must be submitted in English. The initial license fee is €39,750, and there are no additional taxes on gross gaming revenue.

Technical Standards

Operators are required to meet strict technical standards, including secure systems, tools for responsible gaming (such as self-exclusion and deposit limits), and compliance with anti-money laundering (AML) regulations. This includes transaction monitoring and customer due diligence. Detailed documentation must be maintained for compliance inspections.

Once these requirements are fulfilled, operators can move forward with the application process to obtain their license.

Pros and Cons

The Comoros gambling license comes with both benefits and challenges that operators need to weigh carefully before deciding. Here's a breakdown of the key points:

The Anjouan Gaming Commission has created a setup that appeals to operators looking for a cost-effective licensing option. A tax-free structure is a major financial perk, and the quick application process allows operators to enter the market faster than in many other regions.

That said, the license comes with operational restrictions. The ban on serving local residents means operators must target international audiences exclusively.

For startups and growing businesses, the financial incentives are appealing. However, operators must meet strict technical standards, including using approved software and adhering to global practices for responsible gaming and anti-money laundering (AML) compliance.

This license is a great fit for operators looking to minimize costs and enter the market quickly. But staying compliant with the requirements is crucial to maintaining the license and reaping its benefits.

How to Apply

The process of obtaining a Comoros gambling license involves specific steps set by the Anjouan Gaming Commission (OFAA) to ensure all applicants meet the necessary criteria.

Pre-Application Steps

Before applying, operators must set up an International Business Company (IBC) and appoint a certified local representative. This representative, who needs approval from the Anjouan Gaming Commission, should have expertise in regulatory compliance.

After completing these initial steps, operators should focus on gathering the required documentation to move forward with the application.

Document Preparation

All documents must be in English, recent (dated within the last 90 days), and notarized if requested.

Once all documents are prepared and verified, the application can be submitted to the OFAA for review.

Application Processing

The review process usually takes 1 to 1.5 months after submission. This efficient timeline reflects the jurisdiction's business-friendly nature, allowing operators to enter the market without unnecessary delays.

During this phase, the OFAA evaluates factors such as financial stability, technical readiness, corporate integrity, and compliance systems. The initial application fee is EUR 17,000, with additional fees like EUR 2,000 for Compliance Officer approval and EUR 500 per extra domain.

Operators must also meet the following key conditions:

• Set up an internal audit department

• Fulfill minimum paid-up capital requirements

• Secure indemnity insurance or a fidelity bond approved by the OFAA

Keep in mind, the license restricts serving local Anjouan residents, focusing instead on international markets.

License Types: B2C and B2B

After getting a handle on the application process, the next step is figuring out which license fits your business model.

B2C vs B2B Licenses

The Anjouan Gaming Commission (OFAA) provides two license options tailored to different business needs in the online gambling space.

Choosing the Right License

The choice between a B2C and B2B license boils down to how your business operates - whether you’re engaging directly with players or supporting other operators.

B2C License Highlights:

• Best for businesses that deal directly with players, requiring solid consumer protection and responsible gaming measures.

• Focuses on user-facing activities like marketing and customer engagement.

B2B License Highlights:

• Geared toward companies offering services to other operators, emphasizing technical reliability and operational consistency.

• Prioritizes backend support and partnerships with licensed entities.

If your business model spans both areas, you can apply for both licenses, as long as you meet the respective requirements. Processing times are the same for both types, taking about 1 to 1.5 months from application to approval.

Knowing the difference between these licenses helps operators align their licensing approach with their business goals, ensuring smooth compliance and easier renewals.

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License Renewal

Renewing a gambling license in Comoros is a streamlined process designed to ensure both regulatory compliance and smooth operations for license holders.

Renewal Requirements

Operators looking to renew their license must provide several key documents, including updated corporate paperwork, annual financial statements, compliance reports, proof of financial stability, and criminal activity certificates for key personnel. Additionally, evidence of adherence to regulatory standards is required. To avoid any disruptions, applications should be submitted 2-3 months before the license expires, as the process typically takes 1 to 1.5 months.

Renewal Costs

The annual renewal fee is EUR 13,300, which covers compliance reviews and updates to the registration. This fixed fee makes it easier for operators to plan for ongoing licensing expenses.

Failing to meet the renewal requirements could lead to serious consequences, such as license suspension, operational downtime, financial penalties, or damage to the operator's reputation. The renewal process places strong emphasis on compliance with AML (anti-money laundering), KYC (know your customer), and financial stability standards, which are critical for maintaining the license.

Compared to other jurisdictions, the Comoros renewal process is more straightforward, making it an appealing choice for operators who value efficiency without sacrificing compliance. This approach reflects Comoros' focus on balancing regulatory oversight with business-friendly practices.

Renewing your license ensures uninterrupted operations and demonstrates ongoing commitment to meeting Comoros' gambling regulations.

Gambling Laws in Comoros

Knowing the rules and regulations is key for operators looking to stay compliant and get the most out of a Comoros gambling license.

The Betting and Gaming Act, managed by the Comoros Finance Commission, lays out the legal framework for gambling activities in the country. This includes online casino games, sports betting, lotteries, and bingo ^[6].

Legal Requirements

Comoros' gambling regulations set clear expectations while offering favorable conditions for operators. Here are some of the main obligations:

• Financial Standards: Operators must meet specific financial ratios set by the Gambling Board.

• Operational Compliance: Businesses need a certified local representative and must register with the Anjouan Business Registry as part of the licensing process.

The Comoros Finance Commission monitors compliance through audits, financial reviews, and checks on operational changes. Penalties for breaking the rules can range from fines to license suspension or even revocation, depending on the severity of the issue.

Money Laundering Prevention

Comoros has strict Anti-Money Laundering (AML) and Know Your Customer (KYC) measures in place. Licensed operators are required to:

• Verify customer identities before allowing account creation.

• Monitor transactions for unusual activity and report any issues to the authorities.

• Enforce age restrictions and promote responsible gaming practices.

The Gambling Board ensures these standards are met through regular audits and operational reviews. Combined with Comoros' tax-friendly policies, these measures make it an appealing option for licensing.

Fees and Processing Time

This section breaks down the financial requirements and time needed to secure a Comoros gambling license, helping operators assess its practicality.

License Costs

Getting a gambling license in Comoros is relatively affordable compared to many other regions. Here's a quick look at the main costs:

Notably, Comoros does not impose taxes on gross gaming revenue, nor does it require annual tax audits. Administrative expenses are also lower than in many other licensing regions.

Processing Duration

The typical timeframe to obtain a Comoros gambling license is about 1 to 1.5 months. Several factors can affect this timeline, such as:

• The completeness of your submitted documents

• How quickly you respond to requests for additional information

• The complexity of due diligence checks

• The speed of setting up the required business structure

To ensure a smooth application process:

• Provide all required documents in the correct format

• Address information requests quickly

• Work with certified local representatives

• Maintain open communication with the regulatory body