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.

Thanks to digital technology and growing interest in fintech,

• Tuvalu is increasingly discussing the possibility of legalizing online gambling

as a new form of digital service export.

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.

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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

on the creation of offshore zones for licensing online business,

• but due to a shortage of specialists and the small scale of the economy

the project was not implemented.

In recent years, the government of Tuvalu has increasingly considered

• eGaming and crypto gambling as a promising area
• as part of the Digital Nation Tuvalu 2030,

which relies on digital technologies and international licenses.

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Legislation and regulation

The country lacks a specific law governing gambling.

There is no 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.

Control over financial flows and Internet services

• by Ministry of Finance and Economic Development
• и Telecommunications Department,

however, their powers do not extend to the field of gambling.

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Online gambling

Despite the lack of local operators,

• Tuvalu residents actively use international online casinos,

where you can play slots, roulette, poker and bet on sports.

With the growing 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).

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.

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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 possibility of developing 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."

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Social and cultural context

Tuvalu is a Christian country with traditional foundations.

Society as a whole is wary of gambling,

especially to the idea of ​ ​ the emergence of physical casinos.

Churches and local communities advocate control and restriction,

• but not for a total ban, provided,

that the activity will be focused on foreign markets.

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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 discussed 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.

These moves could transform Tuvalu

• into a new generation digital offshore,

where online gambling licenses will generate revenue without harming society.

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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.

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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 eGaming's new digital licensing center in Oceania.