Gaming Law 2022 Comparisons

No sector developments are forecasted.

Higher Fees

The Alderney eGambling (Amendment) Ordinance, 2018 and the Alderney eGambling (Amendment) Regulations, 2018, which came into effect on 10 January 2018, introduced higher certificate fees.

Data Protection Law

The Data Protection (Bailiwick of Guernsey) Law, 2017 came into effect on 25 May 2018, replacing the Data Protection (Bailiwick of Guernsey) Law, 2001, and bringing Alderney’s data protection standards into line with Europe. The legislation imposes further duties on data controllers and processors, and confers additional rights on data subjects.

The Alderney eGambling (Amendment) Ordinance, 2020

The Alderney eGambling (Amendment) Ordinance, 2020 was made by the States of Alderney in September 2020. The Ordinance moves anti-money laundering and counter-terrorist financing requirements from the Regulations to parliamentary legislation.

Higher Penalties

In 2021, three new pieces of legislation were introduced as follows:

• the Gambling (Alderney) (Amendment) Law, 2021, made by the States of Alderney, which came into effect on 19 May 2022;

• the Alderney eGambling (Amendment) Ordinance, 2021, made by the States of Alderney, which came into effect on 17 November 2021; and

• the Alderney eGambling (Amendment) Regulations, 2021, made by the Alderney Gambling Control Commission, which came into effect on 26 November 2021.

The amendments increase the imprisonment penalty for those guilty of an offence under the Gambling (Alderney) Law 1999, increase the financial penalties that could be imposed for regulatory breaches from GBP25,000 to GBP250,000, or 10% of annual turnover (whichever is greater), and increase the imprisonment penalty for money-laundering offences to five years.

The following sectors are permitted.

• Betting – “pool betting” refers to bets made by any of the following methods:

a)       on terms that any winnings must be a share of, or be determined by reference to, the stake money paid or agreed to be paid by the participants (including totalisator bets, filling up and returning coupons, other printed or written forms);

b)       on terms that any winnings must be, or must include, an amount (not determined by reference to the stake money paid or agreed to be paid by the participants) that is divisible in any proportions among the winners; and

c)       on the basis that the winners or their winnings must be at the discretion of the promoter or some other person.

“Winnings” includes winnings of any kind.

• Bingo constitutes “gaming”. See “Casino” below.
• Casino is referred to as “gaming” and defined as playing a game of chance for winnings in money or money’s worth, whether any person playing the game is at risk of losing any money or money’s worth or not. Pool betting is excluded from the definition of gaming.
• Gaming means the playing of a game of chance for winnings in money or money’s worth, whether any person playing the game is at risk of losing any money or money’s worth or not, but does not include the making of bets by way of pool betting.
• Gambling includes all forms of betting, gaming and wagering, and any lottery.
• Poker constitutes “gaming”. See “Casino” above.

In addition, the Alderney Gambling Control Commission’s (AGCC’s) Technical Standards and Guidelines for Internal Control Systems and Internet Gambling Systems indicates that the below specific games are acceptable:

• re-spins/held reels;
• held reel games;
• keno and bingo;
• card games;
• roulette;
• dice games;
• simulated wagering;
• scratch ticket;
• video poker; and
• blackjack.

Except for sportsbooks, all land-based gambling is prohibited (Alderney’s sole land-based bookmaker retired in January 2014). See 3.1 Key Legislation.

The regulation of gambling is authorised by the Gambling (Alderney) Law, 1999 (the “Gambling Law 1999”). The Alderney eGambling Ordinance, 2006 (superseded by the Alderney eGambling Ordinance, 2009) establishes the lawfulness of online gambling.

In addition, the key pieces of Alderney eGambling legislation are:

• the Gambling (Alderney) Law 1999, as amended (most recently in 2021) (the “Gambling Law 1999”);
• the Alderney eGambling (Operations in Guernsey) Ordinance, 2006, as amended (most recently in 2014);
• the Alderney eGambling Ordinance, 2009, as amended (most recently in 2021) (the “eGambling Ordinance 2009”); and
• the Alderney eGambling Regulations, 2009, as amended (most recently in 2021) (the “eGambling Regulations 2009”).

The following pieces of legislation regulate land-based gambling:

• the Gambling (Betting) (Alderney) Ordinance, 1997; and
• the Gambling (Bookmakers) (Alderney) Ordinance, 2002.

“Gambling” encompasses all forms of betting, gaming and wagering, and any lottery, whilst “lawful gambling” covers any form of gambling legalised by an ordinance that has been made under Section 6 of the Gambling Law 1999.

Land-based gambling is not separately defined in Alderney’s gambling legislation.

“eGambling” means a gambling transaction with (i) an eGambling licensee, (ii) Category 1 associate certificate holder or (iii) a Category 2 associate certificate holder that is effected remotely, by a customer, by means of a telecommunication device (Section 30(1), eGambling Ordinance, 2009).

A Category 1 associate certificate is where the operator is the foreign-based equivalent of a Category 1 eGambling licensee. A Category 2 associate certificate is where the operator is the foreign-based equivalent of a Category 2 eGambling licensee.

eGambling is not unlawful where the following requirements are met:

• the transaction is not effected by, with or through a young person;
• the transaction is organised or promoted by or with the holder of a Category 1 eGambling licence, Category 1 associate certificate, or a Temporary eGambling licence; or
• the transaction is effected by or with the holder of a Category 2 eGambling licence, Temporary eGambling licence or a category 2 associate certificate holder, formerly known as a foreign gambling associate certificate

(Section 1, eGambling Ordinance, 2009).

A young person is someone under the age of 18 (Section 20, Gambling Law 1999).

The Gambling Law 1999, Section 13, sets out a general offence for any breach of the Gambling Law 1999 or breaches of subsequent ordinances created under the Gambling Law 1999. See 3.6 Penalties for Unlawful Gambling and 11. Enforcement for further details.

The AGCC can also bring regulatory proceedings where breaches of the eGambling Ordinance, 2009 or eGambling Regulations, 2009 have occurred. The AGCC may take regulatory action where:

• an eGambling licensee or a certificate holder is no longer a fit and proper person;
• an associate of an eGambling licensee or a certificate holder is not, or is no longer, a fit and proper person to be associated with the operations of the licensee or certificate holder;
• an eGambling licensee or a certificate holder has contravened a provision of the gambling legislation, or a condition attached to the eGambling licence or certificate in question;
• a Temporary eGambling licensee is no longer licensed or properly licensed in another jurisdiction to conduct eGambling operations; or
• the licensed activity is being, or has been, carried out by an eGambling licensee or certificate holder, or an associate of an eGambling licensee or certificate holder, in a manner which is inconsistent with the licensing objectives

(Section 12, eGambling Ordinance, 2009).

Under the Gambling Law 1999, the penalty for unlawful gambling shall be a fine, imprisonment for a term not exceeding two years, or both.

The AGCC can impose penalties for breaches of the eGambling Ordinance, 2009 or eGambling Regulations, 2009. The AGCC can impose a financial penalty of either (whichever is greater):

• GBP250,000; or
• 10% of the annual turnover of the eGambling licensee, certificate holder, associate or Temporary eGambling licensee.

See 1.2 Recent Changes. There are no pending legislation changes.

The Gambling Law 1999 (Section 1) established the Alderney Gambling Control Commission. The AGCC aims to protect and enhance Alderney’s standing as an online gambling (eGambling) jurisdiction through ensuring that all eGambling in Alderney is:

• conducted honestly and fairly;
• free from criminal influence, especially regarding funding, management and operation; and
• regulated and monitored to protect customer interests and all those vulnerable to gambling-related harm.

The AGCC’s operational responsibilities are twofold, being:

• licensing – investigating the suitability of new applicants and maintaining required records pertaining to all licensees and certificate holders; and
• compliance – approving the licensee’s gambling equipment, internal controls and operating procedures.

The AGCC’s objectives are to ensure that:

• all electronic gambling is conducted honestly and fairly in compliance with good governance;
• the funding, management and operation of electronic gambling remains free from criminal influence; and
• electronic gambling is regulated and monitored so as to protect the interests of the young and the vulnerable.

The AGCC’s approach to regulation has become more global since the introduction of the point of consumption regime in the UK under the Gambling (Licensing and Advertising) Act 2014. In effect, this abolished a white-list system that enabled Alderney licensees to operate in the UK under transitional rights, so that anyone wishing to advertise or transact with customers in Great Britain must hold an operating licence from the British Gambling Commission. Consequently, the AGCC’s focus has shifted from the UK to working with other regulators more globally to ensure gambling is regulated effectively between jurisdictions and it has signed the following memorandums of understanding (MoUs):

• Antigua and Barbuda in February 2010;
• the Nevada Gaming Control Board in January 2011;
• the Danish Gambling Authority in June 2011;

• the European Sports Security Association (ESSA) in December 2011;

• the Alcohol and Gaming Commission of Ontario in January 2012;
• the Casino Regulatory Authority of Singapore in October 2012;
• the UK Gambling Commission in February 2013;
• the Maltese Lotteries and Gaming Authority in October 2013;
• the International Olympic Committee in February 2014;
• the Fédération Internationale de Football Association (FIFA) in March 2014;
• the Northern Territory of Australia in July 2014;
• the Jersey Gambling Commission in March 2015;
• the Financial Services Authority of the Seychelles in 2017; and
• the Isle of Man Gambling Supervision Commission.

A letter of intent between the AGCC and the Netherlands (Kansspelautoriteit) was signed in January 2015 as a precursor to a full MoU.

There are no recent or forthcoming changes.

A bookmakers licence is available for land-based gambling.

For online gambling, licences and certificates are not limited in number and depend on the nature and type of activity.

As of 11 November 2022, there were 31 registered licensees, comprising:

• 14 Category 1 licence holders;
• 6 Category 2 licence holders; and
• 11 holders of both Category 1 and 2 licences.

Licences

The types of licences are (one or both of the category eGambling licences can be held):

• a Category 1 eGambling licence for B2C activities – authorising the licensee to organise and prepare gambling operations, including the contractual relationship with customers, the verification and registration of players and the management of player funds;
• a Category 2 eGambling licence for B2B activities – authorising the operator to effect gambling transactions, including operational management of a gambling platform located within an approved hosting centre in Alderney/Guernsey; or
• a Temporary eGambling licence – allows a licensee, who is licensed/approved in another jurisdiction to conduct an equivalent form of gambling, to conduct a gambling transaction under limited circumstances (see 4.6 Duration of Licences).

Category 1 and 2 eGambling licences can only be held by an Alderney registered company. However, the company no longer needs to be formed before the application is made to the AGCC, provided that the applicant commits to forming an Alderney registered company during the application process and before a licence is issued.

Category 1 eGambling licensees may either:

• work with a number of Category 2 eGambling licensees or Category 2 associate certificate holders, who will host games on their server, and players will be sent to the Category 2 eGambling licensee or Category 2 associate certificate holder wherever they are situated; or
• hold a Category 2 licence or associate certificate (formerly known as a foreign gambling associate certificate) for effecting gambling transactions with the customer.

Certificates

The following certificates are available in Alderney:

• a Category 1 associate certificate for B2C activities, where the operator is the foreign-based equivalent of a Category 1 eGambling licensee. The certificate holder must, however, have a resident representative located, registered or incorporated in the Bailiwick of Guernsey;
• a Category 2 associate certificate for B2B activities, where the operator is the foreign-based equivalent of a Category 2 eGambling licensee, which can now be upgraded to a Category 2 licence without loss of any residual value;
• a core services provider associate certificate, which is granted to a third-party entity with which an eGambling licensee, Category 1 associate certificate holder or Category 2 associate certificate holder contracts directly for the provision of gambling-specific software, such as games; and
• a hosting certificate for the accommodation of gambling equipment, which must be suitable, secure and meet the AGCC’s technical standards.

Personal Licences

Personal licences known as key individual certificates are available to persons who are, or will be:

• someone who occupies or acts in a managerial position for a licensee or certificate holder;
• someone who carries out managerial functions for a licensee or certificate holder; or
• someone in a position to control or exercise significant influence over the operations of a licensee or certificate holder.

Licences are readily available subject to the fulfilment of application criteria and relevant fee payments. See 4.7 Application Requirements.

With the exception of the Temporary eGambling licence, licences and certificates are ongoing subject to licensees’ payment of the annual fee and the AGCC’s approval of licensees’ and certificate holders’ continued suitability to hold an Alderney licence or certificate. As the name indicates, the duration of Temporary eGambling licences is restricted and authorises gambling transactions for either:

• a maximum of 29 days continuously; or
• an aggregate of 59 total days within a six-month period.

Operators seeking to conduct gambling transactions beyond the above durations must apply for a Category 1 eGambling licence and/or a Category 2 eGambling licence within 42 days. Temporary licences are also available to operators using Alderney servers for disaster recovery purposes.

Key Application Requirements for Operators

The licence application and approval process can be broadly divided into the following categories:

• suitability;
• fair games; and
• adequate processes.

Key requirements may be summarised as follows.

• Gambling servers – unless otherwise authorised under a special agreement with the AGCC, servers must be located within Alderney or Guernsey at hosting premises approved by the AGCC by way of a hosting certificate. Any approved hosting premises outside the Bailiwick of Guernsey do not need to hold a hosting certificate.
• Gambling equipment – unless specifically agreed with the AGCC, all equipment used to operate games must be located in approved premises in either Alderney or Guernsey. This extends to game servers, player databases and transaction databases. However, personnel or any back-office functions need not be located in Alderney or Guernsey.
• Financial requirements – subject to a liquidity adjustment in respect of investment in fixed assets and relevant account groupings as they appear in the reports specified in Schedule 18 to the eGambling Regulations, 2009 and submitted under Regulation 242(2) of these regulations, applicants must hold capital equal to or exceeding the sum of qualifying overheads using the following formula: shareholders’ funds, minus an adjustment that is equal to the total of fixed assets, must meet or exceed the quarterly reported value of net gaming yield (NGY) less any operating profit, excluding the cost of affiliate fees (as approved by the AGCC).

In addition to the above conditions for establishment, the application itself comprises two stages.

Stage one

Stage one requires:

• submission of the signed corporate application form and supporting documents;
• submission of the applications for key individual certificates;
• payment of an initial investigation deposit of GBP10,000; and
• the formation of an Alderney registered company (for a Category 1 and/or Category 2 eGambling licensee).

Upon receiving the application, the AGCC will arrange to meet with the applicant to better understand the applicant’s:

• business plan and proposed operations;
• potential business and executive associates;
• corporate entities involved in the application; and
• persons who may need to submit applications for key individual certificates.

Successful applicants must pay the relevant licence fee before the licence is issued and before proceeding to stage two.

Stage two

Stage two requires the AGCC’s approval of the licensee’s:

• internal control system (ICS);
• gambling equipment; and
• capitalisation status.

The ICS is “a system of controls and administrative and accounting procedures used by an eGambling licensee for the conduct of eGambling” and is designed to enable licensees to confirm how they propose to mitigate any business risks, such as protection of customer funds and disaster recovery. Licensees must complete the ICS document comprising the following sections:

• section 1 – corporate structure and staffing;
• section 2 – accounting systems;
• section 3 – customer registration, verification, banking and management;
• section 4 – eGambling; and
• section 5 – computer controls.

The AGCC’s Technical Standards and Guidelines for Internal Control Systems and Internet Gambling Systems provides further information on its expectations regarding the above areas.

With regard to gambling equipment, the AGCC’s approval is required for all equipment which runs or supports games. All gambling equipment will need to be tested independently.

With regard to capitalisation status, the AGCC requires documentary evidence of how the applicant has been initially capitalised. The applicant must be adequately financed at all times to satisfy three ratios:

• cash must always exceed player balances;
• current assets must always exceed current liabilities; and
• total assets must always exceed total liabilities by at least 25%.

Once satisfied, the AGCC will issue a letter of approval allowing the licensee to commence operations.

Key Application Requirements for Directors, Owners or Senior Management

Those associated with, or in, managerial positions or conducting managerial functions or who are able to exercise significant control over licensees or certificate holders must hold a key individual certificate. The AGCC also has the discretion to determine individuals who satisfy these positions. In addition to a GBP1,000 investigation deposit, applicants must provide a recent photograph, written confirmation from the eGambling licensee or licence applicant that that individual is or will be a Key Individual, and complete the AGCC’s application form covering the following sections:

• section 1 – applicant’s personal details;
• section 2 – applicant’s household details;
• section 3 – applicant’s education and employment;
• section 4 – applicant’s finances; and
• section 5 – applicant’s character.

The application’s aim is to enable the AGCC to determine the scope of any required investigations and identify any further information required. Generally, the AGCC is reviewing the applicant’s character, current financial position and general suitability to perform activities for or on behalf of an eGambling licensee or associate certificate holder.

Subject to receipt of full application information and payment of any relevant costs, the AGCC’s review of applications generally takes three to six months.

The licence applications themselves do not attract a fixed fee. Instead, applicants are required to pay a GBP10,000 deposit upon application submission to cover the AGCC’s associated costs in reviewing the application. Any balance remaining from the deposit is refunded to the applicant or licensee. The deposit for key individuals is GBP1,000. The various deposits and payment structures are listed on the AGCC’s website and are detailed below.

Category 1 and 2 associate certificates and eGambling licences attract the following costs:

• initial deposit – GBP10,000;
• supplementary deposit – GBP5,000 (GBP1,000 for certificates);
• modification fee – GBP100;
• approval of the ICS – GBP10,000;
• changes to the ICS – GBP5,000;
• approval of gambling equipment – GBP5,000;
• endorsement of approval of equipment on associate certificate – GBP5,000;
• inspections of operations – GBP7,500; and
• special investigations – GBP5,000 (GBP2,000 supplementary deposit, if required).

Core services certificates and hosting certificates attract the following costs:

• initial deposit – GBP5,000;
• supplementary deposit – GBP5,000; and
• modification fee – GBP100.

Annual licence fees are payable on or before the anniversary of the grant of the licence.

Subject to NGY, annual licensing fees in Alderney range from GBP35,000 to GBP400,000 per year.

Category 1 eGambling Licence

• New licensee for first year of operation – GBP17,500.

After first year of operation:

• Band A (NGY less than GBP500,000) – GBP35,000;
• Band B (NGY equal to or exceeding GBP500,000 but less than GBP1 million) – GBP60,000;
• Band C (NGY equal to or exceeding GBP1 million but less than GBP5 million) – GBP80,000;
• Band D (NGY equal to or exceeding GBP5 million but less than GBP7.5 million) – GBP130,000;
• Band E (NGY equal to or exceeding GBP7.5 million but less than GBP20 million) – GBP200,000;
• Band F (NGY equal to or exceeding GBP20 million but less than GBP30 million) – GBP290,000;
• Band G (NGY equal to or exceeding GBP30 million) – GBP400,000; and
• annual gambling association fee – GBP3,000 per business associate.

Category 2 eGambling Licence

• New licensee for first year of operation – GBP17,500.
• GBP35,000 annual fee (fixed).
• Annual gambling association fee – GBP3,000 per business associate.

Other Annual Fees

• Category 1 or Category 2 associate certificate – GBP35,000 for a new holder in Alderney, for its first year.
• Category 1 associate certificate – GBP50,000 annual fee plus an additional fee for Band B to Band G.
• Category 2 associate certificate – GBP50,000 annual fee (fixed).
• Core services associate certificate – GBP10,000 annual fee (fixed).
• Temporary eGambling licence – GBP10,000 annual fee (fixed).

This is not applicable in this jurisdiction.

Currently, there are no proposals for reform.

See 4.4 Types of Licences.

B2C activities are authorised by a Category 1 eGambling licence, which enables licensees to contract with customers. Authorised activities include:

• entering into an agreement with the customer;
• registration and verification of the customer;
• engaging in financial transactions with the customer;
• managing the customer’s funds;
• offering or promoting gambling to the customer; and
• other actions that the AGCC determines to be activities that can only be carried out by a Category 1 eGambling licensee

(Regulation 3, eGambling Regulations, 2009).

See 4.4 Types of Licences.

B2B activities are authorised by a Category 2 eGambling licence. Authorised activities include:

• striking a bet;
• housing and recording the random element or gambling transaction outcome; and
• operating a system of hardware and software on which the gambling transaction is conducted

(Regulation 5, eGambling Regulations, 2009).

Core services associate certificates are issued to those closely involved in online gambling but who do not undertake the primary activity, including gambling software suppliers. The AGCC does not regulate marketing affiliates.

The brand owner is likely to be investigated either as a business associate or a gambling business associate of the Alderney licensee.

There are no recent or forthcoming changes.

Technical measures such as IP or payment blocking are not currently applicable in Alderney.

The responsible gambling requirements are underpinned by the AGCC’s objectives regarding online gambling to ensure that:

• all electronic gambling is conducted honestly and fairly;
• the funding, management and operation of electronic gambling remains free from criminal influence; and
• electronic gambling is regulated and monitored so as to protect the interests of licensees’ customers, as well as the young and vulnerable.

Key responsible gambling requirements are implemented through the AGCC’s Technical Standards and Guidelines, 20 July 2018, and the eGambling Regulations. See 7.3 Gambling Management Tools for specific requirements.

There are no recent or forthcoming changes.

Licensees are required by legislation, and through AGCC guidance, to provide gambling management tools to customers.

The Technical Standards and Guidelines require that licensees:

• have internal control systems that provide customers with “easy and obvious mechanism[s] to self-limit their game play” (Section 3.5.4); and
• provide customers with a player protection page that may be accessed from any screen where game play or wagering activity can occur (Section 3.5.5).

The eGambling Regulations, at Regulation 237, enable customers to provide written notice to Category 1 eGambling licensees or Category 1 associate certificate holders in order to set restrictions on the amount customers can deposit, wager or lose in a given time period/number of transactions.

AML is regulated in the Bailiwick of Guernsey through the following primary and secondary legislation:

• the Terrorism and Crime (Bailiwick of Guernsey) Regulations, 2007;
• the Transfer of Funds (Alderney) Ordinance, 2007;
• the Disclosure (Bailiwick of Guernsey) Regulations, 2007;
• the Disclosure (Bailiwick of Guernsey) Law, 2007; and
• the Terrorism and Crime (Bailiwick of Guernsey) Law, 2002 (Consolidated 2010).

The Criminal Justice (Proceeds of Crime) (Bailiwick of Guernsey) (Amendment) Ordinance, 2018, which came into force on 31 March 2019, updates the Bailiwick of Guernsey’s AML/CTF structure to ensure continuing compliance with international standards. There is particular focus on improving customer due diligence measures and associated preventative measures; for eCasinos, this includes improved record-keeping by obtaining additional evidence of client identity.

The AGCC issued Business from Sensitive Sources Notice (BSSN) No 40 on 9 November 2021, detailing high-risk jurisdictions that are subject to a call for action by the Financial Action Task Force (FATF) and setting out countries and territories that are identified by relevant external sources as presenting a higher risk of money laundering and/or terrorist financing. See 8.3 AML Requirements for further information on requirements.

There are no recent or forthcoming changes.

Alderney’s AML requirements stem from FATF standards. The Fifth Anti-Money Laundering Directive is not applicable in Alderney as Guernsey is not part of the EU.

On 8 December 2020, the AGCC published updated guidance for eGambling businesses on Countering Financial Crime and Terrorist Financing following the introduction of the Alderney eGambling (Amendment) Ordinance, 2020.

In addition, the AGCC’s BSSN 40, 9 November 2021, provides actions to be taken by licensees and certificate holders, including:

• applying enhanced customer due diligence measures to any customer or business relationship where customers or beneficial owners have a relevant connection with the countries or territories specified in Part A of the BSSN and as listed in the FATF Public Statement; and
• taking a risk-based approach to any reviews or assessments of any business relationship with those in jurisdictions listed in Part B of the BSSN.

The AGCC inspects all licensees within one year of the approved start of live operations and annually thereafter. Inspections include a thorough review of a licensee’s payment systems, due diligence records and AML/CTF controls, including a mystery shopping exercise.

On 17 August 2021, the AGCC issued an Instruction to eGambling licensees and certificate holders following its completion of a risk review in relation to AML and counter-terrorist financing. The Instruction repeals and replaces the Instruction issued on 6 June 2016. It sets out the areas considered by the AGCC to “pose the greatest risk of money laundering and terrorist financing” as follows:

• ownership and control of casinos, including ecasinos;
• use of third parties;
• poor and inadequate KYC, including the risks associated with politically exposed persons (PEPs);
• customers who are criminals; and
• payment risk or card fraud.

The Instruction requires the board of each eGambling licensee, Category 1 associate certificate holder or Category 2 associate certificate holder to, as soon as reasonably practicable:

• consider the risks posed to their business by the issues raised in the Instruction;
• ensure that their business risk assessments accurately reflect any such risks by making any necessary changes, and seeking approval from the AGCC for any such relevant changes to their approved ICS; and
• ensure that where a suspicious activity or transaction report (STR) is filed in any operating jurisdiction, consideration is given to obligations under the Disclosure Law and Terrorism Law to file an STR with the Guernsey Financial Intelligence Service (FIS).

The AGCC will review compliance with the Instruction during on-site inspections.

The AGCC supervises the gambling advertising activity of licensees and has regulatory powers to address any breaches of the gambling advertising rules as stated in Alderney’s legislation.

Advertising is not specifically defined in legislation.

The key advertising provisions are listed in the eGambling Regulations, 2009 and require that Category 1 eGambling licensees must:

• be truthful;
• not be distasteful;
• not promote gambling by, with or through persons under 18 years of age, and this factor must be taken into account when determining media selection and placement of the advertising;
• not encourage people to engage in excessive participation in online gambling that would be socially irresponsible or could result in harm to them or others;
• not imply or convey any message that a person’s status, general abilities or social success can be attributable to gambling;
• not challenge or dare people to participate in online gambling;
• not, having regard to the expected returns to customers through online gambling, promote or suggest any unrealistic expectation of winning;
• not bring into disrepute the Island of Alderney, the AGCC or, in any broader context, the Bailiwick of Guernsey; and
• comply with any requirements relating to the content or nature of advertising imposed in the jurisdiction covering the target market for that advertising

(Regulation 4(c), eGambling Regulations, 2009).

Similar provisions apply to the other licensees, with the corresponding legislation listed in the following sections of the eGambling Regulations, 2009:

• Category 1 associate certificate holders, Regulations 4(c) and 58A(3);
• Temporary eGambling licensees, Regulation 8(1)(c);
• Category 2 eGambling licensees, Regulation 6(c); and
• Category 2 associate certificate holders, Regulations 6(c) and 60(b).

See 9.3 Key Legal, Regulatory and Licensing Provisions.

The penalty for any unlawful gambling is a fine, imprisonment for a term not exceeding two years, or both (Gambling Law 1999, Section 13). The AGCC can impose a financial penalty of either GBP250,000, or 10% of annual turnover, whichever is greater. For money-laundering offences, the penalty is a fine, imprisonment for a term not exceeding five years, or both (eGambling Ordinance, 2009, Section 24(5)). The AGCC also has the power to bring regulatory proceedings for breaches of either the eGambling Ordinance, 2009 or eGambling Regulations, 2009.

There are no recent or forthcoming changes.

Detailed information on the transaction and incoming shareholder(s) must be provided within seven calendar days. Please note that there is no formal process for disclosure.

A change of control is triggered by a change in shareholding of 3% or more. Any persons determined by the AGCC to be a key individual, including if they are able to exercise significant control over an eGambling licensee or certificate holder, must submit an application for a key individual certificate.

There are no such requirements in Alderney.

The AGCC can bring regulatory proceedings where breaches of the eGambling Ordinance, 2009 or eGambling Regulations, 2009 have occurred.

The AGCC may issue the following sanctions:

• issuing a direction to rectify;
• issuing a written caution;
• imposing a financial penalty of either GBP250,000, or 10% of annual turnover, whichever is the greater;
• suspending the licence or certificate; and
• revoking the licence or certificate.

The AGCC does have a history of enforcement, most notably in relation to the 2011 event termed by the gambling industry as “Black Friday”, which involved the suspension and revocation of Full Tilt Poker’s Alderney licences.

See 11.2 Sanctions. Any financial penalty issued will be detailed in a determination notice which will specify the penalty and how and when it should be paid. Financial penalties are issued and enforced by the AGCC.

Following a fit and proper test of a key individual certificate holder, the AGCC may impose a number of sanctions on the individual, including:

• issuing a direction to rectify;
• issuing a written caution;
• imposing a financial penalty of up to GBP25,000, which can be suspended;
• suspending the key individual certificate (which can be cancelled following successful representations); and
• withdrawal of the key individual certificate.

The AGCC has expressed a regulatory interest in social gaming but it has not issued any formal guidance on the matter.

This is not applicable in this jurisdiction.

This is not applicable in this jurisdiction.

This is not applicable in this jurisdiction.

The use of blockchain in gambling in Alderney is unclear and no formal guidance has been issued by the AGCC on this matter. However, the AGCC believes its framework is future-proof and that, therefore, innovative products are already covered in the existing legislative and regulatory framework.

Alderney does not have gambling tax. Licensees may also benefit from the country’s 0% corporate tax regime provided the licensee’s shareholders are non-residents and they can demonstrate:

• they are resident in, managed and controlled from the Bailiwick of Guernsey; and
• their main permanent office generating all or the majority of group profits is established in the Bailiwick of Guernsey.

No reform is currently anticipated.