On 17 March 2011, Jersey’s gambling legislation was modernised to allow e-gaming businesses to operate in the Island on a permanent basis.

Jersey’s gambling legislation, previously only permitted licensing for e-gaming (business continuity) operations in Jersey.  The amendments introduce a regulatory and licensing regime which caters for general e-gaming operators.  As part of the new e-gaming regime in Jersey, two types of e-gaming licences are now available:

• firstly, a new full e-gaming licence which allows e-gaming operators to  establish their businesses on a permanent basis (either physically or in a  remote/virtual sense) in Jersey; and
• secondly, for disaster recovery/business continuity e-gaming operations to be  run out of Jersey.

Of particular interest to e-gaming operators will be that Jersey does not propose to levy direct taxes (such as gross profits tax or "GPT") on e-gaming businesses operating in the island. Instead, the basic 0/10 principles will apply, under which non-finance companies, including e-gaming companies, do not pay Jersey tax. Jersey's revenue from e-gaming will therefore be derived principally from license fees, which are based on a net profit tariff regime.

For more information on e-gaming in Jersey please contact Paul Burton or Sara Johns.