Seychelles

Seychelles review

The first mention of Seychelles dates back to 1505 when it was named "Seven Sisters" by Portuguese navigators. The fate of the country is a sad one. First, the French established settlements on its territories and used them to grow vanilla and cinnamon. Then, in 1794, the islands were seized by Britain. Already in 1814, Seychelles had officially become a colony of the British Empire. Only in 1976 did Seychelles gain independence! Therefore, it can be considered a rather "young" state.

Seychelles consists of 115 islands, of which only 33 are inhabited. The country's main economic drivers are tourism and fishing. At the same time, the state is looking for additional sources to fund its budget. The approval of Seychelles as an offshore zone provided such an opportunity. Currently, more than 40,000 companies are registered on the country's territory.

The islands have also adopted a law regulating and authorizing gambling. That is, any foreign company can acquire a license in this jurisdiction. It should be noted that the legislation in this part is quite strict. Unlike similar jurisdictions in the immediate vicinity, Seychelles is the most respected.

The Seychelles Financial Services Authority regulates and licenses gambling.

The organization has an official website where you can download application forms to apply for a gambling license. There is also information for players.

The jurisdiction offers three types of licenses:

• The casino license is for land-based casinos.
• The slot machine license is for slot machine halls.
• The interactive license is for gambling on the Internet (online casino).

The license cost is reasonable: 55,000 US Dollars. If the company wants to open a hall with slot machines, the cost will depend on the number of slots installed in the room.

Despite attempts to more thoroughly prescribe the rules of gambling on the Internet. Namely, the adoption of a law in 2003. Many experts recognized it as insufficient and exhaustive. It is also worth noting that residents are prohibited from playing in foreign online casinos. At the same time, the state does not block the sites of such establishments.

Gambling history in this country

In 1993, the state adopted a new constitution that authorized offshoring within the state. It is worth noting that this document was adopted only for the second time. In 1994, the islands adopted the "Gambling Law," designed to regulate gambling in the country and attract third-party companies in both terrestrial and digital spheres. In 2003, a draft was passed to regulate internet gambling in more detail. In 2014, a new gambling law was passed.

The land-based gambling industry has evolved in a rather peculiar way. Despite the current legislation, some casinos opened and closed in a year, while others still operate today. The main reason is the opening of casinos by foreign investors. Besides, the regulation of the sphere was far from transparent. That's why, in 2013, the Financial Services Authority was approved in the area of responsibility, which was transferred to the gambling industry.

Now, six official land-based casinos are in the state's territory, located on different islands.

Licensing authority

The Seychelles Financial Services Authority (FSA) is an autonomous regulatory organization. It is responsible for financial operations in the state relating to the non-banking sector. The organization was formed in 2013 following the enactment of the Financial Services Authority Act.

The responsibilities of the Authority include:

• Opening of licenses,
• Supervision,
• Control of licensee's compliance,
• Asset management companies,
• Investment activities,
• Insurance,
• Gambling.
  

The above areas were previously regulated under the "International Business in Seychelles Act" passed in 1994. But with the passage of time and the development of the industry, as well as considering global practices and the desire to be more "transparent" for investors, the law was revised. In 2013, the new "Financial Services Act" was approved.

FSA is empowered to:

1.  Exercise a supervisory function, regulate, and monitor a Seychelles-licensed company operating in or outside the State.
2. To make changes in the law and indicate them in the register.
3. To develop mechanisms for effective compliance with the law.
4. To take action where necessary against companies operating illegally.
5. To inform and advise the public on matters relating to the direct activities of the Authority.

The mission of The Seychelles Financial Services Authority:

To create an enabling environment for the growth and development of the Seychelles financial services industry in line with the national economic development strategy and in strict compliance with local and international regulations and best practices.
The regulator's website has a special section where players can complain about a company with a license from the Authority. It will be enough to go to the appropriate section and fill out the form. At the same time, anonymous complaints will not be considered.

Currently (April 2020), there are no famous gambling websites with a Seychelles gambling license on the Internet.

Requirements for licensees

The list of requirements for those wishing to obtain a gambling license in Seychelles is quite simple.

• The company must provide articles of association, a document confirming registration as a taxpayer, and an extract from the company register.
• The institution's approved rules will be applied to a land-based or online casino.
• Certificates of software suppliers. And authorization documents for these suppliers for the production of such software.
• Documents indicating the authorized capital. Certificate from the bank about the availability of funds in the company's accounts.
• Confirm the address and location of the company's office. Suitable extract from the state institution.
• The company's physical address must be indicated on the site of the online casino.
• Documents confirming the absence of arrears in utility payments.
• Draft agreement, based on which the relationship between the institution and players will be carried out.
• Information about the payment services used. The amount of winnings and their frequency.
• The mirror server must be located in the state.
  

Pay a commission fee for reviewing applications. Understand that to run a gambling business, one must obtain special certificates of competency, which are also issued by the Seychelles Financial Services Authority.

Conclusion

Gambling licensing in the Seychelles jurisdiction is done at the state level. However, according to Casinoz, the level of professionalism in this jurisdiction is insufficient. Of course, there is a regulator in the person of The Seychelles Financial Services Authority and even adopted the "Gambling Act." But it's not enough.

First and foremost, the Authority's oversight of several different lines of business—for example, insurance and gambling—is a major weakness. Accordingly, there can be no question of a thorough approach to each area. The advantages of licensing for companies are also described rather vaguely. Yes, there is an offshore zone, and ... that's it.

There are now other jurisdictions, such as Malta or Gibraltar, where gambling licensing costs are almost identical. However, these jurisdictions have better prospects for companies and wider market coverage, as online casino players are much more likely to choose an establishment with a license from a more reliable regulator. At the same time, we hope that the jurisdiction of Seychelles will develop and become a benchmark in the future.