Maintaining the Integrity of Gibraltar's Gaming Industry
It was announced early this summer that the Gibraltar government had accepted the eCOGRA certificate for online gambling integrity. eCOGRA is the first organisation to be approved by Gibraltar for the purposes of certifying that locally licensed gaming firms comply with the rules contained within the UK's Gambling Act of 2005. Recognition of the eCOGRA guidelines is especially significant in the current climate as Gibraltar strives to cement itself as an important centre for online gaming.
eCOGRA is a nonprofit organisation based in the UK that offers an independent set of standards for the online gaming industry. eCOGRA CEO Andrew Beveridge describes it as "an unrivalled verification programme" for online gaming websites. It deals with issues as diverse as advertising and data storage, but its main purpose is to ensure "fair gaming," with "player protection" given specific priority. The "Play it Safe" crest that appears on many respectable gaming sites already has been awarded to a large proportion of the Gibraltar-based gaming firms, and not only certifies that these sites get the eCOGRA seal of approval, but that they will be regularly monitored to ensure that their standards are maintained.
Gaming is one of Gibraltar's biggest industries, contributing about £10 million a year to the government in one way or another. Despite interest from various suitors, the Ministry of Finance has thus far kept close tabs on the firms that are allowed to operate under its jurisdiction. The license that was recently awarded to French casino operator Partouche made it only the 16th company to hold this elusive prize. Only companies willing to "grasp the highest standards" are good enough, according to Peter Caruana, Gibraltar's chief minister. In accepting the eCOGRA guidelines, the Gibraltar government is adding an objective element to this test.
However, many within the Gibraltar gaming fraternity believe that there are other factors that are outside of eCOGRA's control that also should be considered. These include issues such as those relating to the treatment of gaming-firm employees. It is widely thought that potential gaming licensees should arguably be considered on the basis of how these firms treat their staffs. A spate of redundancies across the gaming industry last year served to highlight the fickle nature of the worldwide gaming business. If Gibraltar-based gaming firms had acted unscrupulously during this time, resultant high unemployment levels could have sent Gibraltar's economy into turmoil.
It also is widely believed that the eCOGRA guidelines do not deal sufficiently with the issue of so-called responsible gaming. Many Gibraltarians are aware that gambling can become an addiction just like drugs or alcohol. It is therefore essential that gaming firms exercise a social duty of care toward their customers. Encouraging players not to gamble will naturally be at odds with their business plans. However, gaming firms that are uncaring or dismissive of the problems that betting can cause are not the type that Gibraltar wishes to have trading from its shores.
In addition, the eCOGRA guidelines do not do justice to the issue of corporate social responsibility. It is widely thought that firms should give something back to the communities in which they operate, donating a small percentage of their profits to local charities and community projects. Many of Gibraltar's gaming firms are extremely active in the community
and give generously to local causes, a practice that many believe should be encouraged across the whole of Gibraltar's gaming community.
Few would disagree that Gibraltar would have a lot to lose were its excellent reputation as a global e-commerce hub to go down the drain. Gibraltar's economy is perhaps already overly reliant on the gaming industry. Impending amendments to the UK's gambling legislation, together with changes to Gibraltar's own corporate tax structure, could be ominous news for this most lucrative of cash cows. It is important in the meantime that Gibraltar selects only the right sort of firms to operate from the Rock. This author believes that the Gibraltar government is right to be meticulous in its selection process, and by strict adherence to the eCOGRA guidelines, it is showing that only the best will do for Gibraltar.
Two-Month Holiday With Full Pay?
One of the larger Gibraltar-based gaming firms was recently left red-faced when, after having dismissed several members of its staff in the wake of the U.S. gaming turmoil, it ended up re-employing many of them in its next recruitment drive. When bosses at this firm became aware that the supposed crisis was not as bad as first thought, they realised that some of their departments were short-staffed. Naturally, ex-employees of the firm who had been dismissed were ideal candidates for the roles being filled, and many of them were rehired. Considering the severance payments these employees had received in the first place, many got their jobs back after enjoying what was essentially a two-month holiday with full pay.
Tristan Cano lives and writes about the gaming industry in Gibraltar.
