Dominica Licensing Data

13 November 1998

In IGN's ongoing effort to collect licensing information on the various jurisdictions hospitable to internet gaming licensing around the world, we offer the following documents from the Caribbean nation of Dominica.

Under the leadership of the Honorable Julius Timothy, Dominica is a rising star when it comes to aggressive recruitment of internet gaming operations. This country is beginning to rival Antigua in it's hospitality of these types of businesses.


COMMONWEALTH OF DOMINICA INTERNET GAMING & WAGERING BUSINESS

All Internet gaming & wagering business in Dominica operate under the terms of an agreement drawn up between the gaming company and the Government of Dominica. The gaming & wagering business is STRICTLY OFFSHORE and any agreement will be specifically strong on this issue. All gaming companies must register under the International Business Company Act of Dominica. The International Business Unit of the Ministry of Finance, Industry and PIanning is the governmental administrative body responsible for the development and the overseeing of this sub-sector.

Any company licensed to operate Internet gaming & wagering business in Dominica automatically avails itself to many advantages. The Tele-communications system here, is one of the world s most advanced system; allowing for immediate and easy communication with the rest of the world. Telecommunications of Dominica Ltd., the sole Telecommunications Company operating in Dominica, provides such service through fibre-optic and satellite facilities on the most modem switches and carriers.

Also available in Dominica is a large, young and trainable work force. Where companies must import technical and managerial personnel, work permits for those persons would be available, through the normal procedure.

Off-shore businesses domiciled in Dominica; do enjoy generous fiscal incentives and certain tax exemptions. Customs duty concessions are given for imports needed to carry on Internet gaming & wagering business. Immunity is granted to Internet gaming & wagering companies from income tax, with holding tax, sales tax and other taxes. Offshore companies, such as Internet gaming & wagering companies are not subject to foreign exchange control.

SETTLNG-UP OF AN INTERNET GAMING & WAGERING BUSINESS

  1. Make initial contact with:
    The Manager OR The Assistant Manager
    International Business Unit
    Ministry of Finance Industry and Planning
    TEL NO. 1-809-448-2401 Ext. 3158/3159
    FAX/TEL NO. 1-809-448-0406

    through an agent, representative or one of the principals of the company At the time of inquire an application package will be made available. All applications should be returned complete with required documents and information, for processing.

  2. On notice from the International Business Unit, register said company as prescribed by the International Business Company Act of the Commonwealth of Dominica, and submit a copy of the certificate of incorporation to the International Business Unit.

  3. Pay registration fee to the Accountant General at the Dominica Treasury and submit the receipt confirming payment to the International Business Unit.

  4. Arrange, with the International Business Unit, for the drawing-up of the agreement between the registered company and the Government of Dominica. When the agreement has been finalized the company will be presented with a license to operate in Dominica.

  5. Provide the International Business Unit with the address and telephone numbers of the business on commencement of operations.

APPLICATION FORM FOR INTERNET GAMING & WAGERING BUSINESS

1. NAME OF COMPANY









2. INTENDED LOCAL ADDRESS OF ESTABLISHMENT









3. NAME AND ADDRESS OF Local CONTACT PERSON(S)









4. NAME AND ADDRESS OF SHAREHOLDER(S)









5. LIST THE MANAGERIAL AND/OR TECHNICAL POSTTIONS TO BE FILLED BY NON-NATIONALS WITHIN YOUR ORGANIZATION.









6 ATTACH A BUSINESS PLAN FOR FIVE YEARS FOLLOWING THE Establishment OF BUSINESS IN THE COMMONWEALTH OF DOMINICA.





7 ATTACH EVIDENCE OF ANY OF THE COMPANY'S SHAREHOLDER EXPERIENCE IN LOTTERY, GAMING & WAGERING BUSINESS ( INTERNET OR OTHERWISE).





8. ATTACH DESCRIPTION OF ANY OTHER LOTTERY, GAMING AND WAGERING BUSINESS IN WHICH ANY SHAREHOLDER HAS FINANCIAL INTEREST, (IN DOMINICA OR OTHERWISE) INCLUDE LOCATION AND NAME OF BUSINESS.





9. COMPLETE THE PRESCRIBED PERSONAL DATA FORM.





10. ATTACH A QUANTIFIED MASTER LIST OF ALL ITEMS TO BE IMPORTED BY THE COMPANY.





11. CERTIFIED STATEMENT OF NETWORTH OF SHAREHOLDERS/APPLICANTS FROM AN INDEPENDENT AUDITOR.





PERSONAL DATA

1. FULL NAME




2. FORMER NAME (if different from name in1).




3. DATE OF BIRTH (attach copy of birth certificate)




4. PLACE OF BIRTH




5. NATIONALITY (if naturalized attach a copy of the naturalization certificate)




6. NATIONALITY AT BIRTH (if different from 5)




7. PASSPORT NUMBER AND DRIVERS LICENSE PARTICULARS
(enclose copy of drivers license and pages 1-4 of passport)




8. DATE AND PLACE OF ISSUE OF PASSPORT AND DRIVERS LICENSE




9. ADDRESS OVER THE LAST 10 YEARS (starting with present)




10. EDUCATIONAL BACKGROUND




11. EMPLOYMENT HISTORY
(give flail details of your occupation over the last ten years)




12. CRIMINAL CONVICTION



SAMPLE AGREEMENT

COMMONWEALTH OF DOMINICA

CONTRACT OF CONCESSION FOR CONDUCT OF AN OFF-SHORE INTERNET TELEMARKETING GAMING BUSINESS

THE COMMONWEALTH OF DOMINICA (hereinafter referred to as THE LICENSOR ) And.......(hereinafter referred to as THE LICENSEE ) have concluded the present contract of concession for the conduct of an off-shore Internet telemarketing gaming business to be based in Dominica.

CONCESSION - The "LICENSOR" grants this concession on terms specified below-

  1. The LICENSOR, having determined and hereby representing to the LICENSEE that granting this Concession satisfies all applicable legal requirements, hereby grants the Licensee a Concession to establish and operate a computer-based gaming business operating exclusively as an off-shore business, over telecommunications lines.

  2. This Concession shall be for an initial period of ..... years during which the Licensor shall be authorised to license others, provided, however, that the terms and conditions shall be no more favourable than terms of this Concession.

  3. The LICENSOR guarantees to the Licensee the following during the terms of the Concession:-

      (a) access on the most favourable terms available to international telecommunications services on the most modern switches and carriers (including fiber-optic and/or satellite);

      (b) the right to import into Dominica on a duty free basis all equipment necessary to conduct an international telemarketing gaming business, including computers and communications equipment;

      (c) availability of work permits for such technical and managerial personnel as is necessary to operate an Internet telemarketing gaming business (it being understood that the Licensee has represented its intent to train and employ local staff to the extent available);

      (d) exemption from taxes on income, withholding tax, sales tax and other taxes for:-

        (i) compensation paid to persons not permanent residents of Dominica;
        (ii) winnings paid to non-Dominican customers of the Licensee, and
        (iii) revenues and earnings of the Licensee.

  4. (a)
      (i) The LICENSEE shall pay to the LICENSOR ____percent of gross revenue derived from the Concession (in case of gaming revenues, the difference between the amounts wagered and the amounts won by patrons) or US$25,O00 whichever of the two is greater. The LICENSEE'S books of account shall be open to inspection at any time by the Licensor upon not less than two (2) business days prior notice of inspection. The Licence fee, shall be paid semi-annually based on historical earnings for the prior six months which shall be subject to adjustment at the time of an annual audit to be performed by a major international accounting firm with offices in the West Indies mutually agreeable to the LICENSEE and the LICENSOR.

      (ii) The LICENSEE shall pay to the Government, a non-refundable registration fee of US$15,000, before the licence is issued.

      (iii) The LICENSEE shall contribute to an environmental, health or education project approved of by the Government.

    4(b) LICENSEE will conduct its business based on the highest level of integrity of its games and customer accounts. The Licensee shall establish reliable controls which shall be verified from time to time by independent auditors.

  5. In order to maintain this Concession the Licensee shall be required to commence commercial operations within____months, and in the absence of force majeure, continue such operations without significant interruption throughout its term.

  6. The LICENSEE will cooperate with the LICENSOR in publicizing Dominica tourism in the course of the LICENSEE conducting its business; through a constant Internet link from the LICENSEE'S Home Page or, such other means.

  7. Any third party advertising sponsorship that is placed on the Internet by the Licensee shall be subject to the approval of the appropriate Dominica Government Authority.

  8. Any third party advertising sponsorship that is placed on the Internet by the Licensee shall be subject to the approval of the appropriate Dominica Government Authority.

      (i) The Licensee hereby agrees to pay all charges, costs, levies or otherwise in respect of the use of and access to the Internet.

      (ii) The charges, costs, levies or otherwise include any new charge, cost, levy or otherwise which may apply in respect of the use of and access of the Internet at any time from the execution of this Contract of Concession.

  9. It is understood that the Licensee will hire at least____persons locally on commencement of business and thereafter in accordance with the employment projection in the business plan presented to the Licensor.

    The Licensee shall develop training and instruction programs for its personnel in computer usage and accompanying administrative skills.

  10. If one of the parties breaches its obligations under this contract, it shall have sixty days from receipt of written notice of breach from the other party to rectify such breach. If such breach is nor so rectified the non-breaking party shall be entitled to terminate this contract and/or recover all direct and foreseeable consequential damages arising therefrom (including recovery of the non-breaching party's anticipated future from the Concession).

  11. All disputes and differences which may arise between the parties out of the present Concession shall be determined by a single Arbitrator in accordance with the Arbitration Act Chapter 4:50 of the Revised Laws of the Commonwealth of Dominica of 1990.

  12. This Agreement shall be governed by the laws of the Commonwealth of Dominica.


Dated the_____day of________, 19__

Signed by _________________, 19__








SIGNATURE







Signed by the Minister for
Finance, Industry and Planning _________________________