C.3. Board Substance

The presence of actual activity by the board of directors as well as the effective role that the board member play within the broader context of the Operation.







The IP-Operator is obliged to operate as a resident of which at least half of its statutory board members are required to be residents as well. A resident board member is required to have the necessary professional knowledge to properly perform its duties as Non-Executive Director (the: "Non-Executive"), whose duties shall include accounting, taxation, any local requirements and review of third party (B2B) Agreements. The Non-Executive is also required to file quarterly reporting on Money Laundering, Data Protection and Responsible Gaming. We would recommend that a professional corporate service provider shall be retained to serve as Non-Executive at all times and furthermore have a representative from within the circle of the client as committed to the board of the IP-Operator as well in the capacity of Executive Director (the: "Executive") This person shall be responsible for preparing the factual quarterly reporting for the purposes of review and approval by the Non-Executive.

In the event that non Non-Executive or Executive has been installed at this time, we would recommend to IP-Operators do organize this at the earliest convenience. Please note that all members of the board of directors shall have to be equally responsible. Nevertheless we recommend to limit the mandate of the Executive to a minimum (four eyes only, the Non-Executive has to co-sign at all times), these restrictions need to be publicly accessible.

We recommend for this purpose tailored articles of incorporation, for more information, please contact us.

Featured Article: Evolution of Corporate Substance within the iGaming Industry

Through time, substance tests have been used to determine and allocate the location of factual management of companies, allowing countries to divide regulatory control (licensing, taxation) over those companies. However, as technology advances in a rapid pace, facilitating new ways of doing business, these tests are becoming infinitely complicated, to the point of becoming inoperable. Bas Jongmans, gaming and tax attorney and Xavier Rico, LegalTech Consultant with Gaming Legal Group, discuss how the evolution of substance is impacting iGaming companies in particular.


QR - GLG Litigation Business WhatsApp sm
evolution of substance

Return to main


Need Assistance?

Step one

Find the presentation of the Ai specialist on this page. Also check out the "downloads" section, which holds useful information on this topic.

Step two

If you still need more information, you are recommended to contact your local corporate service professional. A sufficiently educated professional should be able to further explain the legal basis of the MLRO to you.

Step three

If you still need more information, a legal professional @ GLG Litigation is available to provide you with complimentary (limited) additional assistance. Click on the question mark to book time with a legal professional. This will direct you to a contact form in which you are allowed to explain the assistance that you need.

Scan the QR-Code to open a complimentary Whatsapp live-chat with an attorney @ Gaming Legal Group.

Frequently Asked Questions

This section is not yet available.