More on Antigua and BarbudaLaws Governing Gaming Are Strictly Enforced |
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As I explained last week, I recently visited Antigua. Besides being overwhelmed by its beauty and tranquility, I was quite surprised to witness the sophistication of such a small nation.
One of the people I met with was Leroy King, the CEO of the Financial Services Regulatory Commission (the "Commission"). He explained to me that Antigua is not in the business of "selling" business licenses; but rather, there are strict requirements and regulations in order to conduct business in Antigua.
As a matter of fact, Antigua has only licensed 38 gaming companies. Of course, within that group, there are probably about 500 skins. (Empire was a "skin" of PartyPoker meaning the Empire website looked slightly different on the outside but the software was shared.)
The companies licensed by Antigua are known as transparent businesses, independently audited to insure and certify "solvency, safety, and soundness, player protection and compliance" with Antiguan rules and regulations. These businesses benefit society by providing jobs and helping the economy. The businesses benefit because there are no taxes levied on them.
As a matter of fact, it is rumored that one very big site is considering moving its site from Costa Rica to Antigua because Antigua has no business tax, nor any plans to tax in the future.
Antigua's international financial services sector began with the enactment of The International Business Corporation Act, CAP 222 (IBC Act) in 1982. After a number of amendments, the IBC Act created the Commission, of which Leroy King is the CEO.
The Division of Gaming is the arm of the Commission responsible for overseeing all aspects of the offshore gaming industry in the jurisdiction of Antigua and Barbuda. Kaye McDonald is the Director of Gaming and she has a dynamite team of hard-working and highly committed workers dedicated to ensuring the integrity of the system.
The International Business Corporations Act is a lengthy document comprised of 374 sections that govern corporations and holds that:
"No association, partnership, society, body or other group may be formed for the purpose of carrying on any international trade or business from within or outside Antigua and Barbuda unless it is a corporation under this Act."
Besides being incorporated, an offshore gaming company must be licensed under the Interactive Gaming and Interactive Wagering Regulations. Among other things, those regulations require transparency and accountability.
For a business to get a license, the regulators are required to look at an applicant's good character, honesty, and integrity; good business reputation; and possession of a sound current financial position; a satisfactory corporate structure; appropriate resources and reserves to insure that players shall have winnings paid; the appropriate technical and business ability to run a site; the commitment to run the site in Antigua and Barbuda. Furthermore, the applicant shall eliminate any pornography; shall take specific measures to discourage compulsive gambling and to prohibit underage gambling; must be untainted by illegality; shall follow policies and take affirmative steps to prevent money laundering and other suspicious transactions; and of course, the applicant must follow all laws, rules and regulations of the Antiguan government.
Even directors, partners, CEOs, and shareholders owning 5 percent or more of a controlling interest are scrupulously investigated to insure they are honest businessmen with integrity and good business reputations with no suspicious past. Key employees must also be licensed. The premises of the site must be secure with controlled access.
Even if a license is issued, it can be revoked for a violation of any requirement. Independent audits are conducted to certify compliance.
The Antiguan regulatory scheme recognizes the potential for the existence of money laundering. Therefore, the government has developed rules and regulations for its prevention by knowing one's customers, having user profiles, having the ability to analyze a transaction in real time, recording deposits and withdrawals and analyzing any suspicious behavior including but not limited to large sums of money changing hands, and analyzing betting behavior on the site to make sure one person is not money laundering by passing off money to another under the guise of a bet.
The Antiguan regulatory system seems to run smoothly and efficiently. All of the people I spoke to in the Antiguan government agreed that morality cannot and should not be legislated. Prohibition didn't work; similarly, banning gaming is just not an option. It exists and conscientious well thought out regulation is the only sensible answer.
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