1. Purpose
The purpose of this policy is to establish clear guidelines for the safeguarding of player funds by operators licensed under DCIR. This ensures that player deposits and winnings are protected and accessible in the event of any operational, financial, or legal difficulties experienced by the operator.
2. Scope
This policy applies to all operators licensed by the Vanuatu Gaming Authority offering interactive gaming services to players. All operators must adhere to these safeguards to ensure player funds are protected and managed in compliance with regulatory requirements.
3. Definitions
- Player Funds: All deposits made by players for gaming purposes, including winnings owed to the players but not yet withdrawn.
- Operator: Any entity holding a license issued by the Vanuatu Gaming Authority to conduct interactive gaming.
- Segregated Accounts: Accounts separate from the operator’s operational accounts where player funds are held.
- Third-Party Trustee: A financial institution or legal entity responsible for holding player funds on behalf of the operator and its players.
4. Key Requirements
4.1 Segregation of Player Funds
Operators must maintain player funds in accounts that are entirely segregated from operational or business funds. The segregated account(s) must be structured to ensure that player funds are protected in case of insolvency, bankruptcy, or any other financial difficulty experienced by the operator.
4.2 Use of Player Funds
Player funds may only be used for the following purposes:
- Satisfying withdrawal requests initiated by the player.
- Settling bets made by the player.
- Managing player winnings and bonuses as outlined in the operator’s terms and conditions.
Under no circumstances should player funds be used for operational expenses or any other business-related activities.
4.3 Financial Stability of Operators
Operators are required to demonstrate their financial stability to the VGA by:
- Submitting annual financial reports that include details on the segregated account balances and a comparison with player liabilities.
- Ensuring that the balance of the segregated account is always sufficient to cover all player liabilities, including active deposits and outstanding winnings.
4.4 Reporting Obligations
Operators must provide the Vanuatu Gaming Authority with periodic reports that detail:
- The balance of player funds held in the segregated account(s).
- Any changes in the managing the account.
- Compliance with local anti-money laundering (AML) and counter-terrorist financing (CTF) regulations.
Failure to submit these reports on time may result in regulatory action, including but not limited to fines, suspension, or revocation of the operator’s license.
4.5 Appointment of Third-Party Trustees (Optional)
Operators may, at their discretion or at the request of the VGA, appoint a third-party trustee to manage the player funds. The third-party trustee will:
- Ensure that player funds are held in accordance with the terms of this policy.
- Provide regular audit reports to both the operator and the Vanuatu Gaming Authority, confirming that player funds are being properly safeguarded.
5. Auditing and Compliance
5.1 Annual Audits
All licensed operators must undergo an annual audit conducted by an independent and certified auditor, who will:
- Verify the total amount of player funds held in the segregated account(s).
- Assess whether these funds are properly segregated and protected as per the requirements of this policy.
A copy of the audit report must be submitted to the VGA for review and verification of compliance.
5.2 Compliance Inspections
The Vanuatu Gaming Authority reserves the right to carry out periodic inspections of operator accounts and records to ensure adherence to this policy. These inspections may be scheduled or unscheduled, and operators must fully cooperate with VGA officials during the inspection process.
6. Consequences of Non-Compliance
Any operator found to be in violation of this policy may face regulatory penalties, including:
- Immediate suspension of their operating license.
- Financial penalties as determined by the Regulator.
- Revocation of the operator’s license in cases of severe or repeated violations.
The VGA will also notify affected players and ensure that appropriate steps are taken to refund any outstanding balances to players in cases where the operator’s license is revoked.
7. Player Communication
Operators must clearly communicate to players the safeguards in place for their funds, including:
- A statement in the operator’s terms and conditions outlining the separation of player funds from operational funds.
- Information on how players can access their funds in the event of an operator’s insolvency or license revocation.
8. Review and Amendments
This policy will be reviewed annually by the Vanuatu Gaming Authority to ensure it remains effective in protecting player funds and in line with international standards. Amendments to this policy may be made at any time, with immediate effect, subject to notification to all licensed operators.
