E-bet aiming to meet UK threat

CHANGES to Alderney's online gaming legislation will need to be made for the industry to remain competitive. Although it made '767,794 in 2004 compared with '535,502 the previous year, the Alderney Gambling Control Commission is considering ways to improve its product in order to stave off competition from other jurisdictions and prepare itself for the eventual deregulation of the UK market.

The commission is reviewing its legal framework, which could mean licensees would no longer need to have a paid representative in the island.

'The industry is currently paying the price for something that is not making commercial sense. Investors have asked us why they need to employ people in the island who cannot physically and otherwise contribute to the business,' said AGCC chief executive officer Andre Wilsenach.

'The concept of nominees was included in the betting legislation and got transferred to the e-gaming legislation. It probably made sense in the betting legislation because of the number of staff the industry would have needed in the island, but it doesn't for e-gaming because the industry is remote-controlled.'

Mr Wilsenach added that the e-gaming infrastructure would be revised to create a more attractive business environment. This could mean working with Guernsey to give licence holders the opportunity to host their gaming servers there as well as in Alderney ' a move which would allow them to exploit the wider range of service providers.

'We need to try and develop both the regulatory and investment environments as much as possible if we wish to remain competitive with other offshore jurisdictions. It would mean having another area of substantial revenue and would open up opportunities to use other suppliers, which would allow us to give investors the best service at the best price.

'From discussions we have had so far, it is evident that Guernsey realises the benefits of the industry in Alderney and is willing to assist the island to make it a success. Although Cable & Wireless provides an outstanding and very resilient telecommunication service in Alderney, potential investors are generally concerned that Alderney has only one telecommunications mast, which presents a risk in the case of a major disaster. Alderney is also linked to Guernsey via microwave links, whereas the rest of the world is accustomed to using optic fibre, which is available in Guernsey.'

The UK Gambling Bill has been approved by the House of Lords, but the industry's new infrastructure is not expected to be in place before 2007-8. Mr Wilsenach is confident Alderney could survive any competition from the UK, should the playing field be level.

'I think Alderney has been successful in establishing a very good reputation for itself. We are a highly regarded e-gaming jurisdiction.

'There are still a number of uncertainties surrounding the UK legislation. The UK is now in a situation where it has to employ knowledgeable staff.

'They also have to introduce secondary legislation and nobody knows what the gaming taxes are going to be like and whether the UK will be able to compete with Alderney and other offshore jurisdictions.'

In December 2004, there were 14 online gambling companies licensed in Alderney including Ritz Interactive, SkyBet, Blue Square Gaming, Virgin Games and Cantor Casino. It is expected that more companies will apply during the course of this year.