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Nauru is one of those tiny island nations in the Pacific, and its regulation of gambling is somewhat singular. With approximately 13,000 residents as of January 2024, its law on gambling has been nuanced, evolving over time. While Nauru may be a small country, gambling regulations encompass everything from sports betting to bingo. Let’s take a closer look at the legal framework that governs how bets work in Nauru.
This article was written on October 2, 2024, and is based on information available on that date. Because regulations by nature are subject to change, one should consult with local experts for the most current information available pertaining to gambling laws in Nauru.
A brief history of Nauru’s gambling law
Nauru gambling law has evolved over time, with development through the following significant pieces of legislation:
- Sporting Pools Act 1968: It provided sports pools betting to be conducted legally in the country.
- Street Betting Act 1970: It laid down the rules and regulations regarding street betting to let the generally informal betting practices be monitored.
- Bingo Licensing Act 2008: Legislation concerning licensing of bingo games—a very common form of gambling in Nauru.
- Gambling Act 2011: The comprehensive law so far on all forms of gambling in Nauru.
Regulatory framework
The gambling activities in Nauru are primarily dealt with under the Gambling Act 2011. The act facilitates a legal platform for both land-based and online gambling. The act also created provisions for punishment if there is any illegal gambling going on. It also provides an easy procedure for applying for a license regarding gambling. There are also various restrictions on advertisements with the intention of trying to avoid the advertisement of unlicensed gambling activities.
Some key provisions include:
Offences: Operating illegal gambling results in a fine or sentence to imprisonment.
Licensing: The law outlines the procedures for applying for various licensing related to gambling, including those like bingo, sport betting, and lottery.
Advertising: The law controls advertisements on gambling games to curb illegal gaming.
Types of gambling license
The Gambling Act 2011 allows for the issuance of various categories of licenses for gambling activities. It is befitting that operators in Nauru apply through an appointed regulatory body upon payment of recommended fees. The categories of licenses are as below:
- Bingo License: This license will cover the operating of bingo games that have equally gained momentum even in local pubs and bars.
- Sports Betting License: In addition to the provision under the Sporting Pools Act, this license will permit placing of bets on sporting events.
- Lottery License: Allows permission to operate lotteries.
- Public Gaming Machine License: Required to operate gaming machines, but these are heavily restricted in Nauru.
- Public Table Games License: Required for poker or blackjack-type games, but these are very rare.
Also provided for are the exemptions for charitable activities—raffles, for example—and these types of games can be offered without a license, providing that the proceeds are for charity.
Taxes on gambling
The operators in Nauru are required to pay taxes according to the law stated in the gambling act. Taxes are put in place such that gaming contributes to the nation’s revenue while ensuring a proper check on them. The on-premise gaming tax is paid on all the various forms of betting activities licensed under the law; hence, the industry contributes to the public purse.
Bets prohibited and allowed
Most of the gambling is allowed in the country of Naura, but some bets are not allowed to be played. The following are the ones allowed and not:
Allowed Bets
- Bingo: Bingo games take place under the Bingo Licensing Act 2008.
- Sports Betting: Sports betting takes place under the Sporting Pools Act of 1968.
- Lottery: Legal but under certain permits.
- Table Games: Legal under the Gambling Act, but at present, there aren’t any land-based casinos offering such games.
Forbidden Bets:
- Unlicensed Casino Games: Operating casino games without proper licensing is considered illegal.
- Online Casino: Online casino gaming is banned, though online sports betting is allowed.
Online gambling Nauru
Regarding online gambling, however, the laws are vaguer. Currently, there are no licensed online casinos in Nauru. That said, residents can freely gamble on offshore online casinos. Even then, since it is not illegal to gamble online, one may be forced to pay a fine for illegal casino gambling.
Land-based casinos in Nauru
To your surprise, Nauru doesn’t have land-based casinos. The following are the reasons why the country has no casinos. First of all, small population: only 13,000 residents means a small demand for a casino. Secondly, lack of investors. It may not be viewed as a lucrative enough market to establish casinos by investors. After that, the big reason is governmental decisions. So far, establishing casinos has not been considered a priority by the local government.
While there are no physical casinos, popular sports betting and bingo ensure that there is at least some legal and controlled gambling for the residents.
Final thoughts
The gambling laws of Nauru are mainly underlined by the Gambling Act 2011 and are therefore regulated. Be that as it may, even though the country does not have land-based casinos within its borders, it permits its residents to engage in legal sports betting, bingo, and lotteries. Of course, Nauruans can also play on international online casino websites. Local authorities, however, also take responsible measures to protect their citizens from the potential negative impact of gaming.
It would be very interesting to see the changes gambling legislation can go through when the regulatory regime in Nauru develops.
If you want to know more, read the full iGaming market research report.
