UK Advertising Ban - Good News for Gibraltar?
Earlier this year the UK government decided to stand by its decision to ban advertising by gambling organisations based in countries that had not met the UK's new regulatory guidelines. The ban affected around 1,000 gambling websites and covered all forms of gambling advertising, including newspapers, TV, and radio, as well as outdoor advertising like posters and billboards, and transport advertising such as those on buses and taxis. Organisations that fall afoul of these new rules may face fines and even imprisonment for their executives. Whilst the ban may have been bad news for all of those jurisdictions that did not make the UK government's "white list," it has had the opposite effect on Gibraltar's gaming industry, which may have much to gain from the ban.
Whilst Gibraltar was enjoying a mini heatwave at the beginning of August this year, the UK Parliament was busy utilising its new powers contained within the Gambling Act 2005. Under new regulations that came into place on Sept. 1 when the Act came into force, gambling ads were banned from companies based outside the European Economic Area (EEA). The EEA comprises all EU states, together with Norway, Iceland, and Liechtenstein, but crucially also, Gibraltar.
Other non-EEA jurisdictions were given the opportunity to apply for a place on the so-called white list. Prospective candidates had their regulatory standards stringently assessed, with factors such as their tax structure under meticulous scrutiny. This is in addition to having in place a scrupulous licensing regime that endeavours to keep games fair and protect children and vulnerable people.
James Purnell, the secretary of state for Culture, Media and Sport, has made no apologies for rejecting applications from jurisdictions such as the Netherlands Antilles, which is home to British household names like William Hill, Littlewoodscasino.com, and Betfred Casino and Poker. Stated Purnell: "Protection is my number one priority … white listing has actually helped drive up regulatory standards in some countries." He refers specifically to the Isle of Man, whose regulatory regime has undergone significant improvements in recent months in order to attain the standards required to establish a place on the white list. Licensees in prospective jurisdictions will be required to adhere to the requirements imposed on UK operators, including an obligation to contribute to the education and treatment of problem gamblers.
Gibraltar is exempt from the ban by reason of its EEA status; however, it also prides itself on having a framework in place that encourages the highest standards of good governance amongst its remote gaming licensees. Indeed, the appointment of Phil Brear as the new head of gambling regulation for the Gibraltar Regulatory Authority is a clear statement of intent that only the best will do. Brear, the ex-director of operations for the British Gambling Commission, was heavily involved in the development of the UK's gambling legislation and will play a key role in shaping Gibraltar's own regulatory framework, which will mirror that of the UK's.
When you consider all of this together with its advanced telecommunications infrastructure and an educated, English-speaking workforce, it is no surprise that Gibraltar has emerged as the obvious destination for those seeking to relocate as a result of the advertising ban. At the time of going to press, Betfred already had applied for a remote gaming license in Gibraltar, and William Hill, whilst remaining tight-lipped on the subject, is understood to have done the same.
At present, remote gaming licenses are difficult to obtain, given that the government of Gibraltar issues them only to companies of reputable standing with a proven track record in gaming. Provided that these firms meet the high standards required by Gibraltar, they would be added to the exclusive list of 15 licensees operating out of Gibraltar at this time. The arrival of new gaming firms to the Rock not only strengthens Gibraltar's position in the international online gaming industry, but also would be a welcome boost for Gibraltar's economy in terms of the additional tax revenue it will receive and the many jobs that will be created.
Poker Cruise Chooses Gibraltar as One of Its Destinations
Gibraltarian poker players were over the moon when Titan Poker recently announced that its Mediterranean poker cruise would be docking in Gibraltar at the beginning of next year. The cruise, which sets off from Malaga in nearby Spain on Jan. 27, boasts a host of top professional poker players, led by "The Flying Dutchman" Marcel Luske. The cruise lasts three days and, according to inside sources, few of the players on board the MS Jules Verne are expected to make much use of their cabins throughout its duration!
Tristan Cano lives and writes about the gaming industry in Gibraltar.
