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It has been several years of development that have shaped gambling in Andorra. Once upon a time, the principality banned any kind of gambling activity by laws dating back to 1929, which introduced a general ban. For many decades, this prohibition did not change, but recent developments indeed show a new era of the approach towards gambling regulation, at least with the advent of online gambling.
This article was written on September 10, 2024, and reflects the information available as of that date. Since regulations are subject to change, it is advisable to consult with local experts for the most current information regarding gambling laws in Andorra.
Historical context and evolution
A long time ago, all kinds of gambling had been fully prohibited in the state of Andorra. In 1929, this decree by the “Veguers” set the conceptual framework that prohibited all those activities linked to gambling, luck, and chance. However, under the influence of the nearest neighbours, especially from Spain, another kind of gambling named Bingo was introduced to Andorra. This kind of game received the name “Traditional Quintos” and received such popularity that its regulation became necessary.
The turning point was marked by the Bingo Game Law of 1996, hence starting to regulate gambling. This law provided the foundation upon which the gradual development of the current legislation would stand. Consolidation toward a more regulated regime started with Law 37/2014, and further with the implementation of Law 4/2021, a comprehensive structure was set up in Andorra for the regulation of betting.
Current regulatory framework
The actual gambling legislation that is enforced in Andorra is Law 4/2021, dated March 22, 2021. This law takes into consideration all gambling games—both land-based and online. It establishes an articulate framework concerning the practice and exploitation of games of chance, providing for differentiation between different categories of games and operators.
Objectives and scope
The main objective of Law 4/2021 is to regulate the gambling activities within Andorra to make it responsible and to carry out the same equitably. It aims to eradicate excessive gambling, guarantee the operation reliably and with integrity, and receive sustainable development from the gambling activities. The law provided that all types of gambling—the operators and participants—are covered under the gambles, except for simple private games and certain promotional activities.
Types of games and licenses
In general, Law 4/2021 categorises the games of chance into four types, as follows:
- Pure game of chance: Success in such a type of game depends on the element of luck only.
- Mixed game of chance and ability: Success in such a game depends on skill and chance.
- Contests involving chance: Games organised in public or through media, where the participants win their prizes depending on their chances.
- Raffles and lotteries: This will include traditional raffles and promotional lotteries.
Operators shall be licensed based on their activities. The law indeed lays down various types of licenses, related to different categories of operators or distributors. Licenses are required for online gambling activities and are issued by the Andorran Gaming Regulatory Council.
The role of the Andorran gambling regulatory council
The Andorran Gambling Regulatory Council is the main body to regulate the gambling activities. The functions of this council include:
- Regulating and controlling the gambling activities
- Preventing addiction to gambling and their criminal use.
- Controlling technical standards and revising equipment.
- Maintains coordination with other agencies of the administration to keep up the integrity of the lottery and gambling industry.
Taxes and financial aspects
Also, all gambling operators in Andorra are required to pay administrative fees and taxes. There is an administrative fee related to the license that the operator should pay and also pay the tax related to the gambling activity. According to the law, part of the taxes collected must be used for public projects, such as education and health.
Andorra is offering a very attractive tax environment regarding online gambling and, more specifically, poker. When most countries levy high tax rates on poker income, Andorra charges a maximum 10% tax on capital gains derived from poker. The first €3,000 of the derived profit is exempt from taxation, hence making it an attractive destination for professional poker players.
The future of gambling in Andorra
The fact that the UNNIC casino opened its doors in Andorra la Vella is considered a great push for the Andorra gambling market. Given that this new casino will be able to hold around 1,500 people inside its doors, it is likely to further shape how gambling in Andorra is regulated and develops. In any case, this venture would probably turn out to be the yardstick against which the success of the current legal framework was measured.
Final Thoughts
Andorra moved from a position where gambling was banned to one where such activities were regulated. In turn, that allowed a variety of opportunities for business operators and players. The legal framework set by Law 4/2021 creates a friendly environment for further development of both land-based and online gambling. As long as the number of tourists visiting Andorra continues to rise and its gambling sector expands properly, it will be interesting to see how its regulatory environment shapes up toward new challenges and opportunities.
