UK Advertising Ban Spurs Gambling Companies

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From betting groups to jurisdictions, the 'white list' is creating change

The publication of a UK government 'white list' identifying online gambling jurisdictions which are regarded as acceptable homes for companies that wish to advertise in Britain continued to reverberate throughout the industry this week as companies and jurisdictions alike maneuvered for better positioning.

Antigua reacted to the news that it was not on the list but still under consideration by pointing out that it had similar objectives to the British authorities and was confident that it could qualify.

Garth Kimber, who heads up e-gaming licensing on the Isle of Man confirmed that he had already received several enquiries from gambling companies seeking a new (and white listed) jurisdiction in the wake of the government announcement.

Only two jurisdictions have been named as approved, namely the jurisdictions of Alderney and the Isle of Man. Gibraltar and Malta qualify under the umbrella of being in the European Economic Area.

Applications from Antigua and Barbuda and Kahnawake are still receiving consideration, whilst applications from First Alexander (Canadian Reservation), Tasmania (Australia) and Netherlands Antilles have been rejected by the Secretary of State for Culture Media and Sport, James Purnell. Belize and Costa Rica did not apply.

The Betfred group is changing licensing from Curacao to Gibraltar according to press reports, and over the weekend The Independent newspaper claimed that betting giant William Hill is also to switch from Curacao to license there. Gibraltar, an EEA territory, already hosts Ladbroke's online gambling operation, as well as those of 888.com, PartyGaming and other online gambling groups like St Minver.

The British government Department for Culture, Media and Sport has rejected applications from the Dutch Antilles and Tasmania to be included on the white list.

DCMS argues that its tough stance is helping to drive up regulatory standards. "The Isle of Man, for example, has made significant improvements to their regulatory regime in order to secure a place on the white list," said the Secretary of State for Culture, Media and Sport.

The comment that regulatory standards may be given a boost by the publication of the white list could well be on the mark. The Netherlands Antilles jurisdiction, based in Curacao has been quick to react to the news that it is not acceptable. Other online gambling sites operating from the Dutch Antilles include well-known brands such as Interpoker.com and Littlewoods Casino.com, and it is possible that these companies will also switch to a more convenient licensing regime

In a statement, officials of the Netherlands Antilles government said that it has "taken notice of the letter containing the decision of the UK Secretary of State for Culture, Media and Sport, to not accept the recently made application to be “white listed” prior to the UK Gambling Act 2005 coming into effect on September 1st."

The statement went on to reveal that the "....remaining questions about the scope and scale of regulatory presence which were raised by the UK" have since been resolved with the passing and implementation of new legislation, "....of which the UK has seen an advanced draft.

"This new legislation and its accompanying regulations has been accepted by the [Netherlands Antilles] Council of Ministers and is now progressing through parliament in line with the timeline communicated to the UK DCMS, being December 2007.

"In preparing this legislation the Government of the Netherlands Antilles has worked closely with the CIGA, the industry trade association of the Netherlands Antilles and is confident that the approval of both the UK DCMS and CIGA suggests that this is a well balanced piece of legislation that will meet the needs and standards of all stakeholders in what is an important regulatory issue."

The officials revealed that Curacao has been told by the DCMS that it is prepared to reconsider the jurisdiction's application when [December 2007] the new legislation is signed into law.

The advertising ban starts on 1 September and will apply to all forms of gambling advertising including TV, radio, newspapers, magazines, taxis, buses, the tube and some websites. The DCMS said it will affect around 1 000 gambling websites, including some popular gaming sites.