Inside Asian Gaming

INSIDE ASIAN GAMING | January 2010 40 Regulation and proper person to be licensed and that they can pass a business and technical ability assessment and once licensed must fulfil a compliance audit. The LGA will license any remote game which can be ‘securely managed’ under the regulations. Great Britain has perhaps the most liberal gambling regime in the EU. The operation of online betting has been permitted for some time and from September 2007, Since the Gambling Act 2005 came into force, operators have been able to establish online gaming operations in Great Britain, though not many have relocated there This is due to prohibitive tax levels. The Gambling Commission (GC) is the authority responsible for regulating all forms of gambling in Great Britain. Operators must hold a GC licence in order to run a remote service if the operator’s remote equipment is based in Great Britain. Operators must hold a remote licence that covers each type of gambling activity offered and pay an annual licence fee. Great Britain also allows operators licensed in other states within the European Economic Area (i.e. the EU, and the European Free Trade Association countries Norway, Iceland and Lichtenstein) to advertise their services to British citizens subject to compliance with certain advertising rules. This permission also applies to Gibraltar and the so-called White List jurisdictions (Alderney, Antigua & Barbuda, the Isle of Man and Tasmania). It is worth noting that the Britishgovernment is currently reviewing these rules. Gibraltar is technically a member of the EU (as part of the UK) but has a separate constitution granted to it by the UK parliament.Allgamblinglicences(including those for remote gambling) are effectively granted by the government of Gibraltar. Once licences have been issued, licensees are regulated by the Gibraltar Regulatory Authority (GRA). Remote gambling licensees must pay an annual fee. The licensee must be controlled and managed from Gibraltar. Consequently, licensees are likely to be companies incorporated in Gibraltar. It is worthwhile noting that the GRA’s website currently provides that “The Government of Gibraltar only issues remote gambling licences to companies with a proven track record in gaming, of reputable standing and with a realistic business plan. Licences are generally difficult to obtain.” There are currently only 21 operators licensed in Gibraltar. Operators can also become licensed in the following ‘offshore’ territories that are not technically part of the EU: • The Isle of Man is an independent territory that has a special relationship with the EU. The Isle of Man Gambling Supervision Commission (GSC) issues gambling licences for a period of five years. Licences for online gambling are granted under the Online Gambling RegulationAct 2001. Licenseesmust pay an annual licence fee. The GSC may only grant a licence authorising the conduct of online gambling to a company limited by shares and incorporated in the Isle of Man. • Alderney is a British Channel Island and not part of the UK or the EU.The Alderney Gambling Control Commission (GCC) issues licences in respect of “remote gambling”from a server or servers based in Alderney or Guernsey. After a licence is issued and paid for, the licensee must conclude the games testing and systems documentation processes before it can become fully operational. Gambling servers must be located in a hosting centre approved by the GCC. In July this year the GCC announced a new dual online gambling licensing framework that will apply from the beginning of 2010. In order to offer gambling services to consumers, operators will require an Alderney Category 1 licence. This licence authorises the registration and verification of players, the contractual relationship with them, and the management of player funds. In order to provide gambling platforms (an authorised hosting centre for other operators) operators will require an Alderney Category 2 licence. The GCC has also revised its licensing fees. 2. Countries that permit a limited number of operators to apply for a local licence Over the past decade Italy has been slowly liberalising its regulatory system to allow operators to provide an increased range of gambling services to Italian citizens. L’Amministrazione Autonoma dei Monopoli di Stato (AAMS) is primarily responsible for administering the gambling sector. Italy operates a system where operators established in certain European countries can apply for a specific number of licences via tender at times decided by the Italian authorities. Generally these licences are for a fixed term period. A key difference between this approach and the British approach is that there is no mutual recognition given to operators already licensed in other EU Member States. Over the past four years AAMS has undertaken several rounds of licensing tenders and has accordingly awarded different types of licences, including: ‘telematic’ licences that allow betting shops to be operated as a hub for internet terminals in cafes and kiosks; sports betting licences to operate brick and mortar shops and corners and online sports betting, instant lotteries; licences to offer certain skill games online; and licences for slot machines. Providing online casino games to Italian citizens is currently prohibited. However, in July 2009 legislation was enacted that will allow operators already holding online gambling services licences to offer cash game poker, bingo and other casino games (once the operators have paid a one-off fee). Up to 200 remote licences will also be granted by AAMS (for a nine year term) for theprovisionof onlinebetting, games of skill, betting exchanges, bingo, national number games and lotteries. In order to be eligible for these licences operators must be based within the EEA (i.e. the EU, Norway, Iceland and Lichtenstein), pay a one-off fee to obtain a licence and comply with various technical standards. AAMS must enact secondary legislation before these additional remote licences can be granted. Latvia allows operators with companies registered in Latvia and with servers located in Latvia to become licensed to offer certain online gambling activities including betting, roulette and card games. Remote gambling operators without a Latvian licence are Casino San Remo in Italy