Playing Your Cards Right with the Gambling Act

What common legal issues do Gibraltar remote gaming operators often face?

Common issues are customer complaints, regulatory investigations, changing and updating policies and terms and conditions of service, supplier contracts, sponsorships, brand ambassadors, media advertising, licencing renewals and amendments, corporate restructures and acquisitions, to name but a few aspects.

he overall objective of the Licensing Authority is to maintain the good reputation of Gibraltar and this underpins the licensing criteria and Policy of the Gibraltar Gaming Authorities

What are the key things Gibraltar gaming companies must consider when obtaining and maintaining their gaming licence?

That their business plan shows track record, deals with regulatory compliance, and commercially holds water to an objective bystander. They must ensure that the applicant’s licence and operational (internal and client facing) policies and procedures comply with local laws and the laws that apply in the jurisdictions where their customer base is located. Being able to demonstrate at least 3 years of projected investment financial returns and commitment to the jurisdiction must also be considered. Adequate anti money laundering (AML), data and corporate governance procedures are also essential. Payment processing and content suppliers (or other strategic partners) ought to be duly identified and preapproved. Depending on the type of licence they have applied for, there are other considerations. The overall objective of the Licensing Authority is to maintain the good reputation of Gibraltar and this underpins the licensing criteria and Policy of the Gibraltar Gaming Authorities

Can you share more about the Gambling Act 2005: what are the main points of the regulation that companies ought to be aware of?

It depends on what type of operator you are. If you are B2B, then you may be more focused on remote technical standards, quality testing and assurance, SLA’s operating standards, certification of RNG etc., the more technical aspects. In addition and by partnering with B2C operators, you need to show that your software and systems adhere to local regulatory standards. For example responsible gambling back office tools for the B2C operator to fulfil its own regulatory requirements. Even within the B2B regulated gaming sector, there are differences. For instance, an aggregator may have to seek approval for their B2C customers and their gaming content/ software suppliers on a case by case basis.

The Act is an excellent piece of forward-thinking drafting from the Gibraltar legislature but it is now very much outdated.

B2C operators are front line so they need to comply with the full spectrum including, responsible gambling AML, data, advertising standards, underage gaming matters. As mentioned above, the market in which you operate, as well as the rules in the country where you are licensed (If different), will dictate the extent of your obligations as an operator.

The Act is an excellent piece of forward-thinking drafting from the Gibraltar legislature but it is now very much outdated. It is being reviewed and may well be updated in the next year or so. The Act was enacted in 2005 and provides the legal framework for  Gibraltar Gambling operators. It is the main instrument that gives the other obligations that derive from say, codes of practice or licensing conditions, statutory footing and is central to the regulation of gaming companies. There are other requirements that apply under consumer, corporate and employment laws but that is for another day.

Since the enactment,… do you foresee any changes in this Act?

I have been involved over the past couple of years in assisting my Senior Partner Peter Isola who forms part of the Gibraltar working group on this legislative reform, but I am unable to provide a detailed overview.  I can say this, however:

1. It needs modernising and soon
2. It needs to review the location of remote gambling equipment concept and replace it with a more modern and flexible framework
3. It should provide for a wide array of powers of investigation and enforcement for the Gambling Commissioner to work with to ensure a measured and proportional approach to supervision and regulation of licensees.
4. Other leading gambling regimes may also prove to be informative and useful for any proposed reforms to be implemented so that Gibraltar remains at the forefront of the industry as it has been for so many years especially at a time when Gibraltar is leaving the European Union together with the UK.

Steven Caetano

Partner

ISOLAS LLP

Portland House, Glacis Road, Gibraltar, GX11 1AA

T: +350 2000 1892

E: steven.caetano@isolas.gi

About Steven and the Firm

I am a Partner at ISOLAS LLP, the oldest established law firm in Gibraltar. I joined in 2002 and became Partner in 2011. I deal with commercial matters with a focus on online gambling and corporate M&A work. I also do some sports law. When I joined the firm, I helped out in many departments, including PI, civil/ criminal litigation, banking and finance, shipping, trusts and financial services. ISOLAS LLP has been categorized by Chambers’ and Partners legal directory as a Tier 1 firm for the last 3 years.  I have been practising online gaming law for around 15 years. Some notable clients of mine (past or present) include, Manchester United Football Club Limited, Hard Rock International, Novomatic, GVC, BetVictor, Mansion, Nektan, GTECH, William Hill, and Lombard Odier & CIe (Gibraltar).