Alderney reserves benefit to the tune of £2m from gambling industry
The Alderney Gambling Control Commission contributed close to £2m in profit to the island in the last financial year.
Guernsey.- The island of Alderney, part of the British Crown dependency, the Bailiwick of Guernsey, boosted its reserves by almost £2m in 2021 thanks to the gambling sector. The contribution from the Alderney Gambling Control Commission surpassed the £1.74m contributed in 2020-21 and coming close to the figure for 2019-20.
The money will fund capital projects, economic development initiatives and further development of the island’s online gambling industry, authorities said. The gambling sector currently funds most of the States of Alderney’s capital programme. The AGCC received £3.53m in licence fees in 2021-22, up from £3.43m in the previous year.
Lord Faulkner, chairman of the Alderney Gambling Control Commission (AGCC), said: “The Commission continues to make a valuable contribution to both the island of Alderney and the wider Bailiwick. It is noteworthy that a number of the world’s major operators have been attracted to the Bailiwick
“This brings many benefits to the Bailiwick and continues to place Alderney at the heart of the global e-gambling community.”
The Covid-19 pandemic interrupted the regulator’s normal reporting process, but Lord Faulkner recently met Alderney’s Policy and Finance Committee in person for the first time in three years along with commissioners Dr Isabel Picornell and Jeremy Thompson, and AGCC executive director Jorn Starck.
Starck said: “We are very pleased with the support for e-gambling in Alderney and in the wider Bailiwick. We are confident that, despite challenging market conditions globally, the Alderney success story will continue as before.”
“A world leader in the global gambling arena”
Ian Carter, deputy chairman of the Policy and Finance Committee, said the AGCC was largely responsible for the island’s financial resilience.
He said: “The Commission have proved themselves to be a world leader in the global gambling arena. There are obviously challenges ahead in the shape of possible changes to the tax regime in the Bailiwick and the impact of proposed goods and services taxes currently on the table.
“However, the Commission is well placed for renewed growth in future years and has posted improved results following the slight decline in 2020.”
Regulatory changes
In 2021, changes were made to the regulatory framework governing eGambling in Alderney. In
November, the States of Alderney approved the Gambling (Alderney)(Amendment) Law 2021 and the
Alderney eGambling (Amendment) Ordinance 2021. The Commission made the Alderney eGambling
(Amendment) Regulations 2021. The changes increased the custodial penalties that could be imposed by the Court for a number of criminal offences.
The Alderney eGambling (Amendment) Ordinance 2021 increased the financial penalties that could be imposed for regulatory breaches from £25,000 to £250,000 or ten per cent of turnover (whichever is the greater). The custodial penalty that can be imposed for money laundering offences was increased to five years imprisonment.
During 2021, 43 complaints were received, up from 16 in 2020. As a result of the European Union’s Directive on Consumer Alternative Dispute Resolution, the commission no longer processes complaints for players based within the United Kingdom. All complaints were dealt with without a hearing.
Alderney gambling licensees
In 2021, the Commission revised the way it categorises operators based on their function. A B2C (Business to Customer) operator is either a Category 1 eGambling Licensee or Category 1 Associate Certificate holder, which organises and prepares the customer to gamble. A B2B (Business to Business) operator is either a Category 2 eGambling Licence holder or a Category 2 Associate Certificate holder.
As of December 31, there were 9 registered B2C only licence/certificate holders and 22 B2B only
licence/certificate holders. In addition, there were 11 registered B2C and B2B combined licence/certificate holders and 12 CSAC holders.
The number of active licences dropped from the previous year after seven operators allowed their licences or certificates to lapse. Just one Core Services Associate Certificate was granted in 2021, going to Power Leisure Bookmakers Limited.
The States of Alderney said: “The provision of e-gambling platforms and services from an Alderney base complements domestic licensing regimes in a number of jurisdictions. This brings many benefits to the Bailiwick and continues to place Alderney at the heart of the global e-gambling community.
“The Commission works closely with Guernsey’s Financial Intelligence Unit and the Financial Services Commission to maintain robust e-gambling supervision to mitigate the risks of money laundering or terrorist financing and maintain the highest ethical standards.
“Meanwhile, the States of Alderney have recently approved changes to gambling laws, increasing the penalties for criminal offences and regulatory breaches.”
Last week, the Jersey Gaming Commission blacklisted the founder of the collapsed football player trading platform Football Index. Adam Cole will not be allowed to hold any position at any business licensed by the regulator following an investigation into his “fitness and propriety”.
The Commission has backdated its decision to April 6. Cole can still apply to the regulator to request it withdraw or amend its decision. The regulator suspended Football Index’s licence in March 2021 and initiated an investigation following its collapse. It permanently revoked the operator’s licence in October after taking the decision that it was no longer fit and proper to hold it.
