Gambling and online casinos in Tuvalu

Tuvalu is one of the smallest states in the world, located in Polynesia.

The country's economy largely depends on renting an Internet domain. tv, which became the main source of income for the budget.

It is thanks to digital technologies and growing interest in fintech that Tuvalu is increasingly discussing the possibility of legalizing online gambling as a new form of exporting digital services.

To date, gambling in Tuvalu is not regulated by law.

There are no casinos, bookmakers or lotteries, and participation in international online games is not prohibited.

Thus, the country is actually in the "digital neutral zone," where players use foreign platforms without restrictions.

---

Historical context

After independence from Great Britain in 1978

Tuvalu focused on the development of telecommunications and Internet infrastructure.

Gambling was never part of the cultural or economic life of the islands.

In the early 2000s, the first initiatives appeared to create offshore zones for licensing online business, but due to a lack of specialists and the small scale of the economy, the project was not implemented.

In recent years, the government of Tuvalu has increasingly seen eGaming and crypto gambling as a promising area under the Digital Nation Tuvalu 2030 program, which relies on digital technologies and international licenses.

---

Legislation and regulation

The country lacks a specific law governing gambling.

There is not a single valid casino or lottery license, and the state does not control online gambling.

Key facts:

• gambling is not prohibited, but neither is it officially permitted;
• online casino advertising and promotion is unregulated;
• there is no licensing of the gambling business;
• taxation of operators is not established.

The main normative act indirectly related to this topic is the Criminal Code of Tuvalu (1979), where there is no direct mention of gambling.

Thus, online gambling is outside the legal field, but does not fall under criminal liability.

The Ministry of Finance and Economic Development and Telecommunications Department control financial flows and Internet services, but their powers do not extend to the field of gambling.

---

Online gambling

Despite the lack of local operators, Tuvaluans actively use international online casinos where they can play slots, roulette, poker and bet on sports.

With the increasing availability of mobile Internet and cryptocurrencies, players are increasingly switching to offshore platforms.

Popular destinations:

• online slots and roulette;
• esports and soccer betting;
• live games with dealers;
• crypto-gambling.

Popular international sites:

• Stake. com
• BC. Game
• 1xBet
• 22Bet
• Fairspin. io
• Roobet

Ways to pay:

• international payment gateways (Skrill, Neteller, AstroPay);
• Visa and MasterCard cards via Asian processors;
• cryptocurrencies (Bitcoin, Tether, Tron, Ethereum).

According to Pacific iGaming Insight 2024, about 20% of Tuvalu's Internet users regularly participate in offshore games, and the annual turnover of the unlicensed market is estimated at $5-6 million.

---

Economic context

Tuvalu is a microstate with a population of less than 12,000 and limited opportunities for traditional business.

Budget revenues are mainly formed by:

• domain lease. tv (about $10 million per year);
• fishing licenses;
• aid from Australia and New Zealand.

That is why the government is considering the development of digital licenses -

including in the field of online gambling, by analogy with Vanuatu and the Marshall Islands.

Potential for legalization:

• tax revenues - up to $3 million per year;
• creation of offshore eGaming companies;
• development of digital services and cybersecurity;
• improving the country's international image as a "digital offshore."

---

Social and cultural context

Tuvalu is a Christian country with traditional foundations.

Society as a whole is wary of gambling, especially the idea of ​ ​ the emergence of physical casinos.

Churches and local communities are in favor of control and restriction, but not a complete ban, provided that activities are focused on foreign markets.

---

Digital transformation and crypto gambling

Tuvalu is actively promoting the Digital Nation initiative, which relies on the digital economy and offshore licenses.

One of the key areas is the creation of the "Virtual Tuvalu Licensing Hub," which will allow issuing licenses to online operators, including eGaming companies and crypto projects.

The goals of the initiative:

• creation of adjustable digital space;
• integration of blockchain and smart contracts into licensing;
• development of state e-residency;
• introduction of TuvaluCoin national stablecoin for calculations.

The moves could turn Tuvalu into a next-generation digital offshore where online gambling licences will generate revenue without harming society.

---

Prospects

Tuvalu plans to become the first "fully digital country" in the world by 2030.

Online gambling is seen as part of this concept.

Potential steps:

• the adoption of the Tuvalu eGaming Act;
• Tuvalu Digital Licensing Authority;
• launching an offshore platform for registering eGaming companies;
• tax rate - 3-5% of gross income;
• integration with cryptoeconomics.

Forecast:

• when legalizing online gambling, market turnover can reach $20-25 million per year, mainly due to international operators.

---

Tuvalu is a small but digitally oriented country where gambling is not yet regulated, but online gambling is actively developing on offshore platforms.

The state has all the prerequisites to become the new digital licensing center for eGaming in Oceania.