Version: 020301
Editor: Franka Pals
Publisher: Novamedia
Disclaimer: Novamedia disclaims all liability for information provided within the "Novamedia European Gaming and Lottery Files". The information is supplied by independent journalistic sources. No parts of these files may be reproduced in any form by print, photo print, microfilm or otherwise, or re-distributed electronically in any form without written permission from the publisher.
Alderney, the most Nordic isle of the Channel Islands, together with Guernsey, Herm, Sark (and various tiny islets) forms the Bailiwick of Guernsey.The Bailiwick of Guernsey lies just off the coast of France(close to Normandy) in the English Channel. The Channel Islands represent the last remnants of the mediaeval Dukedom of Normandy, which held sway in both France and England. The islands were the only British soil occupied by German troops in World War II.
The Island of Alderney is a self-governing, democratic territory. The island is outside the EU and is also a British off-shore finance centre to the larger islands. The Channel Islands have never been subject to the British Parliament and have always been self-governing units under the direct rule of the Crown acting through the Privy Council. According to constitutional custom, the Crown does not interfere in Island politics, save when some vital constitutional change is necessary, and never in local affairs.
The United Kingdom looks after the Channel Islands in the fields of Foreign Affairs, Defence, and the Islands, association with the European Union (EU). Light tax and death duties make Alderney a popular tax haven. The States of Alderney (the Legislature) consists of a President and ten States Members, all unpaid. Alderney has two seats with voting rights at all meetings of Guernsey's States of Deliberation.
| Population: | 2,200 (2001). |
|---|---|
| Age structure: | - |
| Currency: | Pound (GPD), the States of Alderney also issues a range of its own commemorative coins. |
| GDP: |
|
| Internet: | - |
| Telephones: | - |
In 1997 Alderney led the field with the implementation of legislation to permit electronic betting, using the Internet, e-mail, telephone and fax. The maximum number of licences is fixed at six, two of which are currently giving. The licences are specifically for betting and sports book business and the appropriate legislation is ";The Gambling (Betting) (Alderney) Ordinance 1997" and ";The Gambling (Betting) (Amendment) (Alderney) Ordinance, 1999", copies of which are available from the Alderney Gambling Control Commission.
In July 2001 legislation was enacted to permit Internet or e-gaming. The maximum number of licences is fixed at six and each licence holder will be entitled to employ a maximum of ten staff based on the Island. Licences are issued for a three year period and are subject to an annual fee of £75,000. The licences are specifically for Internet gambling.
The Alderney Gambling Control Commission www.gamblingcontrol.org
In May 2000 the States of Alderney
established an independent, non-political,$
commission, the Alderney Gambling
Control Commission, to take over the
regulation of the licensed businesses from
the Island"s Policy and Finance Committee.
The Commission has built upon and developed
the policy of ensuring its regulatory
and supervisory approach meet the very
highest international standards.
The Commission is also engaged in regular
dialogue with other regulatory bodies at an
international level. It participates in the
Gaming Regulators European Forum
(GREF) and the International Association of
Gaming Regulators (IAGR). The Commission
works closely with other agencies,
particularly in the prevention of financial
crime.
The States of Alderney (Alderney" s Government) has enacted legislation to permit Internet Gaming in Alderney. The legislative and regulatory frameworks being introduced are of the high standards that major jurisdictions such as the United States of America, the United Kingdom and other European countries, and Australia would expect and require, as would major operating companies from such jurisdictions. This document is a guide to those parties interested in seeking to obtain an Internet Gaming Licence under the legislation for Internet gambling.
The applicable legislation is the Gambling (Interactive Gaming) (Alderney) Ordinance, 2001, copies of which may be obtained from the Commission
Interested persons are advised that the technical and operational requirements coming forth from proposed legislation will be detailed and require high levels of integrity and technical management to ensure ongoing compliance. The States of Alderney have resolved that the Australian Regulatory Model is to be considered as a basis for its regulations.However, the concept of risk and demonstrable due diligence are introduced rather than absolute pass or fail status with requirements that may not apply in all cases.
The AGCC Commission will issue licences subject to proposed enabling legislation for Internet gaming. Conditions of Licence will cover various areas of the operation of potential licensees. Many of these matters will be dealt with in relevant sections below. The Licensees must agree to be bound by the Conditions of Licence.
The Commission AGCC seeks to ensure sound regulation of Internet gaming in Alderney. This regulation is to extend to all companies and individuals associated or connected with the monitoring, ownership, administration or management of gaming operations, specifically to those who intend to apply for a licence to conduct such activities on the Internet out of Alderney. Companies and individuals with known criminal records or associations and persons demonstrated to be less than "fit and proper" will be excluded from participation. The application process and the suitability standards that must be met and maintained are clearly indicated in relevant sections of the Ordinance and in documents available from the Commission that detail requirements for technical compliance, for player protection, for the compliance assessment process and for control system outline compliance. Initially three forms will generally be required for completion, namely:
The above mentioned forms are intended to assist with investigations required as part of the proposed legislation and will be available once that legislation is enacted. Key personnel of potential applicants as defined below will be subjected to investigation as appropriate. Investigations into their background will be conducted in association with the relevant police authorities worldwide as required. A determination as to who is to be investigated will be made by the AGCC Commissionat the time the application is lodged. The AGCC does reserve the right however, to investigate other parties beside direct applicants as it sees fit.
General information required from for prospective applicants includes the following:
General information on proposed declaration. Information required from prospective applicants includes the following:
"Key personnel" declarations will be required to be completed by the following persons:
Applicants will be required to pay the costs of all investigations. The Commission will organise its resources to ensure applications are dealt with (so far as is practicable) in the order in which they are received. There are two main categories of investigations.
An initial deposit of GBP 10,000 will be paid to the Commission and drawn down as required. Unused funds will be refunded upon completion of the process; additional funds may be requested as required to ensure that the application process may be taken to its conclusion.
The Commission will require that Internet Gaming Systems undergo compliance testing by an approved testing facility.This may be either GGS-AU Pty Ltd, which is the Commission" s preferred testing agency or a different testing agency chosen by the applicant and approved by the Commission; in which case GGS-AU Pty Ltd will determine the appropriate test programme on behalf of the Commission and monitor its outcome. All costs arising will be met by the applicant.
The licensee may supply, install or operate gaming equipment or conduct Internet gaming only if the licensee"s operating systems, procedures and equipment have been approved by the Commission and continue to meet the technical standards and minimum requirements as issued or as determined by the Commission from time to time. Applicants are advised to familiarise themselves with the contents of the documents that give details of requirements for technical compliance, for player protection and for the compliance assessment process, which are available from the Commission. These documents set out the minimum standards against which an Internet Gaming System (software and hardware) will be evaluated. The documents relate to the following areas:
Including:
Including:
a. risk assessment;
b. development environment;
c. test environment.
Including:
The interests of the player are a major element of the legislation which, includes requirements for:
Compliance audits involve the testing of proposed systems to assess their compliance with the Commission's regulations.This auditing and testing will be undertaken by independent and approved testing facilities as approved or appointed by the Commission. Testing and auditing will not be limited to purely technical requirements and will address where necessary areas such as measures in place to ensure player protection and other social goals. The auditing and testing responsibilities of the Commission and its agents are broadly described below:
Applicants will be required to produce and have approved by the Commission, an Internal Control System that provides a sound basis for prospective operations in accordance with best practice. Applicants are advised to familiarise themselves with the contents of the document giving details of requirements for control system outline compliance that is available from the Commission. A model Control System outline document can be obtained from GGS-AU Pty Ltd, the Commission' s preferred testing agency, to assist in the development of a compliant system.
Guernsey Telecoms (GT) is responsible for telecommunications on Alderney. Prospective applicants are encouraged to confirm their specific requirements. With respect to general technology and facilities available, the following information is provided. An SDH radio network feeds a ring consisting of Alderney Sark Guernsey Alderney at 3 x 155 Mb/s (expandable to 6 x 155 Mb/s). This is envisaged to be sufficient for several licences.
For international network links, Alderney feeds into the GT main network on Guernsey from where there are international links to two sites in the UK. Links to Paris can also be accommodated.
Worldwide Internet backbone connection is via GT' s operation of a 45 Mb/s feed into nodes in the UK. Currently the link is 2 mb to France and will be upgraded to 45 Mb/s shortly.
GT operates as an ISP and also has an Internet backbone service. There is ISDN2 or ISDN30 availability. GT use the most economical method of delivery to access customers, which could mean fibre or copper as appropriate. The telephone system on Alderney is System X. Links out of Alderney are SDH protected.
A non-refundable fee of GBP 150 will be charged for lodging a licence application. Further funds may be required if necessary to complete the enquiry.
It is not proposed to levy any turnover charges on gaming.
A licence fee of GBP 75,000 will be payable upon grant of a licence and on the anniversaries thereof, whether or not the licence is operational.
Six licences will be available each for an initial period of three years. There will be a statutory limitation that no more than 10 people are based on Alderney per licence. The active chief executive of the Alderney Gambling Control Commission, Moran Chapman, told The European Gambling Files: ";At present two electronic betting centre licences are in issue. One to Sportingbet (Alderney) Ltd is fully operative. The other to Bonne Terre Ltd t/as' Surrey Sports International is not being operated at present."
Sportingbet (www.sportingbet.com) Sportingbet is a global on-line and telephone sports betting and casino company with over 450,000 customers in 103 countries as at August 2001. The Group offers a comprehensive range of bets on a variety of international sports and presently accepts bets in 23 currencies.
The Group has operations in Alderney and in Costa Rica. The Directors believe that operating from the respected regulatory environment of the British Isles, gives the Group credibility with international customers and represents an important element of the Group's appeal to customers.
In April 1999, the Company's shares were admitted to the OFEX trading system and £1.2 million of equity funding was raised from new institutional and private investors. The Group raised additional equity funding of £1.5 million in August 1999 and £7.5 million in February 2000. This funding has principally been invested in the development of Sportingbet's IT infrastructure and marketing strategy. The main focus of Sportingbet's global marketing strategy has been to build brand awareness in identified international markets, such as North America, the Far East and Europe – with major marketing partner deals signed in all of these regions.
In May 2000, Sportingbet significantly expanded when it acquired the business and assets of Betmaker (now rebranded as SportingbetUSA.com), an online and telephone-based sports betting business principally serving the North American market from a base in Costa Rica. On 30 January 2001, shares in Sportingbet.com Plc commenced trading on the Alternative Investment Market of The London Stock Exchange. A successful placing of new shares by Dresdner Kleinwort Wasserstein, raised a further £15.4 million, to be invested in the development of Sportingbet's global operations, through appropriate acquisitions, marketing and promotional activities and further product enhancement.