Alderney Gambling Control Commission Regulating eGambling: Lessons learned

Alderney Gambling Control Commission Regulating eGambling: Lessons learned André Wilsenach Executive Director AGCC

Alderney Ireland Guernsey UK Jersey Germany France Switzerland Italy Spain ALDERNEY - British Channel Islands Denmark Netherlands Belgium

Commission Corporate Structure Executive Director Directorate Licensing & Strategy Directorate Compliance Corporate Services • Functions • Suitability investigations • Licensing • Complaints • Special investigations • Policy • Office admin • Strategic planning • Functions • ICS Approval • EGE Approval • Inspections • Change control • Monitoring • Relationship management • Policy • Functions • Legal services • AML Officer • Regulatory sanctions • Financial services • HR services

Regulatory Objectives: • Ensure that funding, management and operations remains free from criminal influence • Ensure that eGambling is conducted honestly and fairly • Protect the interests of public (children and vulnerable)

Current licensing regime • Category 1 & 2 licences • Temporary eGambling licence (Disaster Recovery) • Key individual licence • Associate certificate (Core Services) • Hosting certificate

Why two categories? Players Cat 1eGambling License B2C (Acquisition, registration, verification, fund management) Transfer players Cat 2eGambling License B2B (Poker platform) Cat 2eGambling License B2B (Betting platform)

Licensing and activation process • Phase I: To test the suitability of applicant • Applicant’s character • Business reputation • Financial position • Ownership and corporate structure • Character and reputation of business associates • Sources of funding • NOTE: If found suitable a licence is issued, BUT licensee may not yet commence operations

Licensing and activation process • Phase II: To test business processes, equipment & product • Approval of Internal Control Systems (ICS) • Approval of eGambling equipment (GE) • ONLY upon successful completion of this phase can licensee commence operations and exercise its licence

Ensuring ongoing compliance • Ongoing monitoring through review of : • Regular reports (monthly & quarterly) • Review of websites • Annual onsite compliance inspections • Customer complaints • Mystery shopping exercises • Special investigations

Disciplinary sanctions available • Issue direction to rectify • Issue written caution • Impose financial penalty • Suspend validity of licence or certificate • Revoke licence or withdraw certificate

Number of licensees Year No of Licensees • 2002 4 • 2003 10 • 2004 14 • 2005 16 • 2006 25 • 2007 34 • 2008 42 • 2009 44 • 2010 51 • 2011 55 (forecast)

Licensees

info@AlderneyGambling.com

Lessons learned Independent non-political regulatory body Law enforcement powers Clearly defined regulatory requirements & standards Regulatory adaptability at operational level Licensing function is critical to protecting reputation of jurisdiction

Lessons learned (continue) • Monitor transactions and changes to system on ongoing basis • Conduct regular onsite inspections • Regulatory approach should be commercially realistic • Cross-border industry requires international cooperation • Risk-based approach

Regulating is a bit like this....

Issues for The Netherlands • Open versus restricted approach • Blocking • Blackout periods • Number and types of licenses/ games • Taxation • Regulatory approach • Advertising rights adds value to licence • Funding for research, education, treatment of problem gambling.

Thank you www.gamblingcontrol.org

Alderney Gambling Control Commission Regulating eGambling: Lessons learned