Inside Asian Gaming

INSIDE ASIAN GAMING | September 2012 56 Feature I n 2007 the UK Gambling Commission added the Isle of Man to their “white list” of e-Gaming jurisdictions, meaning that operators based there can advertise in the UK and take on UK-based players without needing a separate UK license. It also means Isle of Man-based companies can sponsor UK sports events and teams. This can be a very interesting proposition for Asian operators, given the popularity of English Premier League football in the region. The Isle’s success was recognized earlier this year in eGaming Review ’s “Business to Business Awards” when local companies were nominated in 18 categories and picked up five prizes. Winners included Continent 8, Playtech and Microgaming. “To havewon five awards is an exemplary achievement and goes to demonstrate the quality of the Isle of Man’s e-Gaming sector and its continued status as a world-leading center of excellence for the industry,” said Alex Downie of the island’s Department of Economic Development. But success didn’t come overnight. The Isle’s efforts in the sector go back to 2001, when it became one of the first jurisdictions to introduce specific legislation aimed at both regulating and facilitating online gaming. Isle of Man—the Choice for e-Gaming The Isle of Man is a global center for the regulation of online and remote gaming. Julia Connolly of Sovereign Trust (Hong Kong) Limited explains why the island, which is expected to issue its 50th license soon, is the preferred jurisdiction for many e-Gaming operators, especially those based in Asia In the Isle of Man one license covers all gaming activity. To be granted a license, the business must be carried out by a locally incorporated company, the servers must be hosted on the island, and the banking of both operational and player funds must be conducted there. The Gambling Supervision Commission, which regulates the gaming industry, dates back to 1962, when it was established as the Gambling Control Commission, making it one of the longest-established gambling regulatory bodies anywhere. New legislation was introduced in 2006 under which the GSC was made responsible for the granting of licenses and undertaking online gaming supervision, ensuring the fair and proper conduct of gaming by Isle of Man operators and enabling them to compete effectively worldwide by facilitating competition and allowing for the provision of modern products and services. In 2010, the GSC became a separate statutory board, providing it with the independence expected internationally of regulatory bodies. The commission operates according to three key principles: 1) ensuring that gaming is conducted in a fair and open way; 2) protecting children and other vulnerable persons from being harmed or exploited by gaming; and 3) preventing it from being a source of crime or disorder, or being used to support crime. These principles are protected through a combination of rigorous checks on operators at the application stage coupled with a thorough, ongoing inspection regime for licensees and a robust complaints and queries procedure. In the Isle of Man one license covers all gaming activity. To be granted a license, the business must be carried out by a locally incorporated company, the servers must be hosted on the island, and the banking of both operational and player funds must be conducted there. At least two of the operating company’s directors must live on the island.