Is the tiny island of Jersey set to join the 50-plus Internet gambling jurisdictions around the world?
Wendy Benjamin of the Jersey law firm Bailhache Labesse says the island's government might be turning the corner. "When I last looked at the application of the existing laws to online bookmakers a couple of months ago, the previous policy against licensing gambling sites looked as though it was softening," says Benjamin. "Policy guidance was expected to allow certain business models having, for example, sufficient anti money-laundering measures in place. I don't think that guidance has been issued yet."
"I can confirm our government is strongly looking at it," said Jersey Gambling Controller Christopher Fairbairn. The Gambling Control office regulates and controls all gambling in Jersey.
While unable to provide many details about potential legislation would cover, Fairbairn explained that Jersey is well-known as a first-class finance center and would certainly want to carry that reputation over into accepting only "blue chip betting" companies.
As such, Ireland's largest bookmaker, Paddy Power, would be a candidate for an online bookmaking license, if online gambling legislation was enacted. The company recently indicated that Jersey was one of its top choices for relocating its Internet betting operations, a decision that will be announced within the next two months.
Although Fairbairn couldn't say what other companies are interested in obtaining a Jersey license, callers from around the world have contacted him for information about the tiny island's legislation. "Certainly we and Peter Griffiths, the IT adviser to Jersey's government (the States), seem to have had quite a few inquiries about the possibility of setting up online gambling sites here," confirmed Benjamin.
Predominant among those potential applicants, U.K. and Irish operators are no doubt attracted to the Jersey as a way to bypass their governments' tax on bets. Punters in the U.K. currently pay 6.75 percent for each bet, while Ireland charges its citizens 5 percent per bet. Both governments have indicated that a drop in betting duty is being considered, although such a drop has yet to occur.