The Ever Changing Faces of Internet Gambling Regulation. Discovery 2011

Transcription

1 Alderney Gambling Control Commission The Ever Changing Faces of Internet Gambling Regulation Discovery 2011 André Wilsenach Executive Director AGCC

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

3 Corporate Structure Commission 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

4 Number of licensees Year No of Licensees (forecast)

5 Licensees

6 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)

7 Current licensing regime 1. Operating licences (Two categories) 2. Temporary egambling licence (Disaster Recovery) 3. Key individual licence 4. Associate certificate (Core Service Providers) 5. Hosting certificate

8 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

9 Licensing and activation process Phase II: To test business processes, equipment & product Approval of operational controls & procedures Approval of egambling equipment ONLY upon successful completion of this phase can licensee commence operations and exercise its licence

10 Ensuring ongoing compliance 1. Ongoing monitoring through review of : Regular reports (monthly & quarterly) Review of websites 2. Annual onsite compliance inspections 3. Customer complaints 4. Mystery shopping exercises 5. Special investigations

11 Disciplinary sanctions available 1. Issue direction to rectify 2. Issue written caution 3. Impose financial penalty 4. Suspend validity of licence or certificate 5. Revoke licence or withdraw certificate

12 How has the industry changed? 1 Segregation of B2B and B2C functions

13 Specialisation resulted in segregation Players Cat 1 egambling License B2C (Acquisition, registration, verification, fund management) Transfer players Cat 2 egambling License B2B Cat 2 egambling License B2B (Poker platform) (Betting platform)

14 How has the industry changed? 2 Paradigm shift away from licensing/ regulation at point of origin to point of consumption

15

16

17

18

19 How has the industry changed? 3 Multi- jurisdictional/ cross border nature of industry

20

21

22 How has the industry changed? 4 Types of Games are community/ player to player orientated Networks/ Player liquidity

23

24

25

26

27

28

29 Lessons learned 1. Independent non-political regulatory body 2. Law enforcement powers 3. Clearly defined regulatory requirements & standards 4. Regulatory adaptability at operational level 5. Licensing function is critical to protecting reputation of jurisdiction 6. Test and certify for system security, auditability and fairness

30 Lessons learned (continue) 7. Monitor transactions and changes to system on ongoing basis 8. Conduct regular onsite inspections 9. Regulatory approach should be commercially realistic 10. Cross-border industry requires international cooperation 11. In interest of player protection don t restrict the offering 12. Risk-based approach

31 Regulating is a bit like this...

32 Thank you