Dr. Jason Lane on Gaming Law
The gambling industry is a huge global market and equally, has an extensive array of legal pitfalls. Gaming associations, retail gambling businesses and the like have to be increasingly aware of changes in regulations and laws pertaining to gaming, betting and gambling.
Here Lawyer Monthly approaches Dr. Jason Lane, Chief Executive of the Jersey Gambling Commission (JGC), who details the most recent regulatory developments taking place in Jersey. He covers the rights and protections for the businesses involved, as well as for the consumer. Dr. Lane also talks about the risks and pitfalls of the e-money sector, and gives his thoughts on the recent Brexit vote and how it could affect the gaming industry and law in Jersey.
What legislation currently exists to protect gaming businesses in Jersey?
Jersey is now among the world’s leading firsttier gaming jurisdictions. Admittedly our old laws, introduced in 1964, were rather dated but that all changed in 2010, when the Gambling Commission (Jersey) Law was adopted, and in 2012, when the Gambling (Jersey) Law came into force. These laws provide a level playing field for businesses and clearly set out their rights and duties.
What legislation exists to protect the gaming consumer in Jersey?
Our Gambling Commission Law protects individual customers as well as the Island’s reputation. It contains three guiding principles which ensure that gambling is “palpably free from crime,” “protects the vulnerable” and “fair” – but vitally it also has a social responsibility function and the requirement for the Island to have a social responsibility fund. The fund is Jersey-specific, so we ask remote gaming licensees to either make a contribution to the local fund or show us what contribution they are making within their main markets; we don’t expect them to pay twice. Where we have an operator which doesn’t include Jersey within its market, we expect them to contribute to education, prevention or research within that market.
Jersey legislation is new, up to date and, importantly, is now capable of allowing rapid change without recourse to the States of Jersey, the Island’s legislature. Article 9 of the Gambling Law allows the Commission to adapt and refine licensing policies through consultation rather than legislative review. This means that Jersey can adapt its regime very quickly, which is a huge advantage over the previous system. That said, the law doesn’t exist in a vacuum and companies need to also abide by other laws, such as our data protection legislation and anti-money laundering provisions.
Is there any way you would see these laws changed for the better?
The Island’s financial services regulator, the Jersey Financial Services Commission, has established a robust and effective regulatory regime. It has an excellent reputation and has helped to establish Jersey as one of the world’s leading centres for financial services. For historical reasons, the JFSC is the supervisory body for AML for the sector – as the JGC hadn’t been formed when that legislation was passed – but I can see a clear argument for designating the JGC as a supervisory body for anti-money laundering in the future, in respect of commercial gambling. It would avoid some duplication and could make the Island even more attractive to potential licensees. However, we know the current system works because our existing licence holders welcome the challenging regime.
What is the legislative relationship between Jersey and the UK government in the gaming sector?
Jersey is not part of the United Kingdom, it has its own government and controls all aspects of domestic policy. That said, Whitehall is consulted in the law-drafting process – not least because all Jersey laws have to receive Royal Assent, through the Privy Council, before they come into force.
Because of a change in UK policy before adoption of the new point of consumption regime, Jersey failed to be included in the UK ‘white list’ of approved gambling jurisdictions. We are obviously pleased that the white list has gone and we now operate on a level playing field. Operators can now decide where to be licensed based on the benefits of a particular jurisdiction rather than a legislative anomaly. Jersey also has Memorandums of Understanding with a number of jurisdictions, including the UK, which is helpful where you have common licensees across jurisdictions.
Might the recent Brexit decision affect Jersey’s gaming law in any way?
Brexit is unlikely to affect the Island’s gambling laws because we only issue licences for companies to operate from or within Jersey, but clearly companies may have to hold national licences for EU states. I have no doubt that jurisdictions like Jersey will remain important and a natural home for corporate headquarters or offshore subsidiaries. Constitutionally, Jersey is outside of the EU for the provision of services, which includes gambling. The only thing that could happen is that we might lose a conduit of information sharing, through the UK, on what is happening in the EU. That said, Jersey has an office in Brussels so we already have an effective way of listening and communicating. Another positive is that we are members of the Gaming Regulators European Forum, and I have been vice-chair and chair of GREF for the last four years, so I would say we are pretty well-placed and we have excellent connections with other regulators throughout Europe and indeed the world.
