Gibraltar Commissioner hits out at Gambling Commission guidance
Phill Brear criticises new money laundering advice note accusing Commission of potentially opening the door to licensing operators based in illegal gambling territories
Gibraltar Commissioner Phill Brear says he is “deeply concerned” after the Gambling Commission released an advice note last week that he claims “unambiguously states that some new licensees may be established in, and/or locate gambling equipment in jurisdictions where remote gambling services are prohibited”.
Within the note, the Gambling Commission offered reporting advice to those licensed by the Commission but located in areas where remote gambling is illegal, while an accompanying table also outlines the requirements expected of licensees based in countries where the act is prohibited.
“We shall be reminding licence holders that they cannot locate Gibraltar-licensed key equipment in territories where such activities are illegal, and they must adhere to any local money laundering obligations they are exposed to,” Brear said.
However, speaking to eGR this morning, a spokesperson for the Gambling Commission dismissed the fears and said it would only license those able to meet all of its licensing criteria.
“We only licence and continue to licence operators who satisfy us that they can legally provide us with the information we require,” the spokesperson said. “All our licensees, like those in the main overseas jurisdictions that licence those supplying the British market, are expected not to breach the relevant legislation in the country in which they are based or to which they supply.”
Leading gaming lawyer Susan Biddle of law firm Pinsent Masons said the Gambling Commission’s reference to countries which deem online gambling to be illegal was more a case of the regulator ensuring nothing “falls through the net” with respect to suspicious activity reporting (SAR).
“It’s correct that the SAR advice note covers the possibility of operators having remote gambling equipment in a country which has prohibited remote gambling but I don’t see this as necessarily qualifying the Commission’s stance that it will license only those who operate legitimately,” Biddle said.
“It may be legal to locate remote gambling equipment in a country even if it is illegal to offer remote gambling there,” she added.
Due to the timing of the note’s release, the note did not feature as evidence in the two-day judicial review which took place last week and subsequently saw the Point of Consumption regime delayed until 1 November.
Yesterday the Gambling Commission announced it plans to re-open the transitional licence window until 23 October following the delay to the start of the new regime.