Gambling and online casinos in Nauru
Nauru is one of the smallest states in the world, located in Micronesia.
The country is known for its limited resources and dependence on foreign aid,- therefore, the issue of diversification of the economy, including the field of online entertainment,
is becoming more and more relevant.
Gambling in Nauru is not regulated by law -- there are no land-based casinos or state lotteries in the country,
nor an operator licensing system.
However, the absence of an outright ban allows residents to- freely use foreign online casinos and cryptoservices,
which actually makes the market open, albeit unofficial.
Historical context
Until the 1970s, Nauru's economy thrived on phosphate exports,
but after depleting natural reserves, the country faced an economic downturn.
Since then, the government has repeatedly sought ways to attract foreign investment,
including in the financial sector and offshore services.
In the early 2000s, Nauru considered the possibility of
creating a free business zone for online companies,- including online gambling licensing,
- but the project was not implemented due to pressure from international regulators
due to transparency and financial control issues.
Today, the country is again showing interest in the idea of a digital economy,
and online gambling is seen as a potential service export destination.
Legislation and regulation
Nauru has no specific legislation governing gambling.
The legal framework is limited by the general norms of the Criminal Code,
providing neither a ban nor permission for gambling.
Key facts:- there are no casino, bookmaker or online operator licenses;
- participation of citizens in offshore online games is not punished;
- advertising and promotion of gambling is unregulated;
- there is no tax system for gambling.
- can only intervene in case of fraud or financial crimes,
but do not control online gambling.
Nauru is thus in a legal vacuum -
where gambling is not legalized, but neither is it illegal.
Online gambling and international platforms
Internet gambling has become the only form of gambling,
accessible to Nauru residents.
Despite the small size of the country (population about 12,000),
many users participate in international games,
especially through mobile devices and crypto casinos.
Popular destinations:- slots and live roulette;
- football and esports betting;
- crypto gambling and NFT lotteries.
- Stake. com
- 1xBet
- 22Bet
- BC. Game
- Fairspin. io
- Roobet
- cryptocurrencies (Bitcoin, Tron, Tether, Ethereum);
- e-wallets (Perfect Money, Skrill);
- replenishment through international cards, with the support of partner processors.
- but with the launch of satellite internet (Starlink and Kacific Broadband)
access to online games has become much more stable.
Economic context
There is practically no private business in the country,
and the economy depends on foreign subsidies and fishing.
Against this background, gambling and the fintech sector are considered as
an opportunity to attract offshore investment and create jobs.
Development potential of eGaming:- the creation of an offshore licence similar to the Vanuatu model;
- registration of foreign operators with a minimum tax;
- development of iGaming zones based on digital companies without physical presence.
Pacific Economic Forum 2024,
in case of legalization of online gambling- Nauru can receive up to $5 million a year in tax revenues
and create hundreds of support and licensing jobs.
Social and cultural context
Nauru is a country with a strong Christian tradition and low population density.
Society is conservative, but not fanatically religious,
therefore, the attitude towards gambling is neutral.
Most residents perceive online gambling
as a form of entertainment and a way to make money with limited employment opportunities.
but due to lack of official statistics
the scale of the event is difficult to estimate.
Local churches and community organizations
call for caution but do not call for a total ban.
Prospects
Nauru government has shown interest in recent years- to create a "digital service center,"
including licensing of fintech companies, crypto exchanges and online gambling.
Possible steps until 2030:- the adoption of the Nauru eGaming Act;
- a Nauru Gaming Authority institution;
- issuance of offshore licenses for online gambling;
- participation in the Pacific Digital Economy Network regional initiative.
- with competent legalization, the Nauru gambling market
- can reach $20-25 million turnover per year,
- mainly due to international operators, not local players.
Nauru is one of the few Pacific countries without gambling legislation,
but with a growing interest in digital entertainment and cryptoeconomics.
Lack of bans makes the market potentially attractive
for future investment and licensing of eGaming companies.
a country where online gambling exists outside the law,
but ready to become part of the economy,
if the government decides to take a step towards legalization and regulation of the industry.