Jersey's Gambling Control Committee To Push For Internet Gaming Again

by Robert Lee, Tax-news.com, London

01 May 2001

Jersey could soon be competing directly with the Isle of Man in luring Internet gaming companies to its shores. The Isle of Man has seen substantial e-commerce development in this field, with several large UK and worldwide betting services operating out of the island, but the Jersey press reported last week that the Gambling Control Committee there wants to open up the debate once again on allowing online gaming to be run from Jersey.

The Gambling Control Committee, which has a new president, Deputy Lyndon Farnham, is charged with the administration of the Channel Islands Lottery as well as the Gambling Control Department, which in turn is responsible for the administration and control of the gambling regulations. The aims and objectives of the Gambling Control Committee include monitoring and controlling gambling, analysing the changing trends within the bookmaking business and creating policies where necessary which reflect these trends.

Already in Jersey are 29 licensed betting offices, with 37 bookmakers licences being renewed annually. Now Deputy Farnham is said to be looking at bringing Internet betting to Jersey on a scale which could ultimately threaten the dominance of the Isle of Man amongst the Crown dependencies.

Deputy Farnham was quoted in the Jersey press as saying: 'I think there are some good opportunities for Jersey if we were to have a well regulated internet betting industry. We are considering taking draft legislation to the States.' He said that there was no reason why an industry could not be built up in conjunction with strict regulation. Over 900 gambling-related enquiries are dealt with annually by Jersey's Gambling Control Department, and originate from local, UK and worldwide companies. Among the enquiries made last year, the Gambling Controller dealt with ones as varied as Internet gaming from as far away as Australia and enquiries from Northern Europe in respect of the setting up of international telephone betting.

The sticking point is the Financial Services Commission, which is opposed to online gaming on the basis that it would be an avenue for money laundering and would have a negative impact on Jersey's reputation. The Isle of Man seems to have no such qualms. After approval of two pieces of gambling legislation in 2001, it is expected that there will be even greater interest in the online gambling industry in the Isle of Man. The Online Gambling Regulation Bill, for instance, has received its first and second readings in the House of Keys. The bill permits Internet gambling along with similar forms of online and interactive gaming, but its emphasis is largely on regulation and constructing a secure regulatory regime involving the Gambling Control Commission, the Financial Supervision Commission, Data Protection, Customs and Excise and the Isle of Man Constabulary. However, in a bid not to overburden the new regulatory system as it gets underway, only three operations will initially be granted a licence to manage online gambling businesses at a fee of around £80,000 each. However, this number is likely to increase as the system becomes more established.

In the case of the Isle of Man, it is expected that the bill will extend the Island's economic base and attract a further source of income without adding to pressure in the employment market. The Isle of Man government claims that the aforementioned bill will make the island a world class leader in the regulation of Internet gambling, providing 'an important opportunity for the Island to benefit from a growing e-commerce market.' The Isle of Man, Jersey and Guernsey are natural competitors and Jersey's Gambling Control Committee is anxious not to miss out on any opportunities. Thus it hopes to approach the financial services authorities once again and see if opinions can finally be swayed.

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