'Don't risk reputation'

MOVES are being made to prevent e-gambling coming to Guernsey. Barry Brehaut will bring a requete to the States in the face of Sportingbet setting up in the island.

He said he was worried about Guernsey's reputation and the housing licence issues.

Deputy Brehaut said it had always been indicated that Guernsey would only house servers for the industry.

Commerce and Employment minister Stuart Falla confirmed that there was nothing to prevent internet gambling coming to the island, something that could undermine the backbone of Alderney's economy.

'If the States wants e-gambling or e-gaming, it has got to be brought back to the House. There's no provision for it in Guernsey,' said Deputy Brehaut.

His views were based on a States debate in May 2005 when the Home Department amended legislation to allow servers to be set up in Guernsey.

The then minister, Deputy Mike Torode, made it clear there was no intention of allowing the business to be in Guernsey, he said.

But faced with Commerce and Employment's stance, Deputy Brehaut wants to get the issue debated by the States.

He said a decision had been made in the Policy Council last Monday after a presentation by HM Procureur Nik van Leuven. He believed it should have been made in the House.

'If you want e-gambling or gaming, it comes back to the States. You do not do it this way, to overturn a States resolution in the Policy Council.'

He added that Sportingbet's move was unlikely to help with unemployment because of the skill levels needed to work for it.

Deputy Brehaut said that would lead to more short-term housing licences being needed.

'We pride ourselves on reputation, that's what we're told by the Guernsey Financial Services Commission. Deputies and members of the public have real concerns about the reputation issue of having e-gambling in Guernsey.'

He supported diversification of the economy, but questioned what it would bring with profits going out of the island.

Deputy Falla said there was nothing to prevent a local businessperson setting up an e-gambling business, as long as it was licensed by Alderney, and there was equally nothing to prevent them coming in from outside the island.

'The UK Government is actually supporting the creation of an e-gambling industry. We must be aware of that potential,' said Deputy Falla.

'Commerce and Employment would support a level of activity, but I think we would want to support it appropriate to Guernsey's size and reputation.'

Guernsey needed to take care, he added.

'Would we as Commerce and Employment place an advert to attract such a business? No, we wouldn't. But would we respond to somebody who legitimately wishes to do so? Yes, we would be supportive. I think there's a big difference in those positions.'

The Home Department is currently consulting on gambling legislation.

Alderney representative Bill Walden said his island had taken the risk and was now reaping the benefits of internet gaming and gambling.

He said it was an industry with a good regulatory framework because of the Alderney Gambling Commission.

'That's there to ensure it doesn't threaten reputations of anyone, particularly the governments involved and the industry itself.'

Alderney did not have the bandwidth to cope, which was why the mutually beneficial agreement was reached with Guernsey, said Alderney representative Richard Willmot.

The island would be extremely upset if Guernsey undermined the industry, he added.

'It's something we have invested our money in, raised money, and invested a lot of time and effort in,' he added.