A new age is dawning in Antigua and Barbuda, where a large portion of online gaming and wagering sites call home. Gaming regulators there took a huge step forward last week in their efforts to create stricter regulations under the nation's 1994 Free Trade and Processing Zone Act, which permits the establishment of licensing for virtual casinos and sportsbooks on the Caribbean island.
The new regulations were written by former New Jersey gaming regulator Frank Catania and Joseph Kelly, a U.S. law professor, who were assisted by Gary Collins, a legal consultant to the International Financial Sector Regulatory Authority, the chairman of Antigua's Betting and Gaming Committee and a consultant to the Prime Minister of Antigua.
According to Collins, the government has accepted the regulations, which were presented to online gaming operators last Thursday for their comments. Collins says operators "were vociferous about certain things" and particularly had issues regarding policy for monitoring players.
Several banking representatives also attended the meeting, which may have given credence to the gaming authorities' efforts, Collins said. The banking reps explained the pressures they have been under from their corresponding banks regarding Net betting transaction issues.
Collins feels that regulators effectively conveyed to the operators that Antigua needs to conform to a certain set of international standards and that the government has certain concerns that need to be addressed.
"At the end of the day, I think we have established a good working relationship," he said.
Officials at WWTS concurred, praising Collins for his efforts to keep operators informed and for consulting their opinions. "If you're a legitimate company, these regulations won't scare you off," a spokesperson for the online sportsbook said. "The approach they're taking is really positive. There are just a couple things that need to be addressed to make the regulations specific to online gaming. They are very realistic. We're all for these regulations."
Bingo Hour's Baron Menzel was unable to attend the meeting, but he was also upbeat about the proposed regulation. "In principal, it's a very good mood," he said, although he wished that some of the moves proposed in the regulations could be accomplished through smaller steps.
"It's a good move," echoed Starnet Business Development Manager Jodi Littlepage, who says that the regulations are being developed to address concerns about money laundering. "They want to appear as if they're tightening regulatory control," she added.
Even though many operators are concerned that the regulations will lead to taxation, Littlepage said there was no need for such worries. "This isn't a taxation," she said.
Instead, concerns about a 40 percent drop in income from tourism have given officials a vested interest in keeping online gaming operators in Antigua. "It's a big industry," Littlepage said.
Collins believes that an increasing number of operators and players will be attracted to Antigua once the regulations go through some final tweaking and are put into place.
"We are trying to regulate at a standard that would be required for local casinos," Collins said.
The key points addressed by the new regulations are comparable in comprehension to those adopted by several Australian states and the Kahnawake Mohawk jurisdiction:
- Money laundering concerns are addressed, including requirements for operators to take note of and report any suspicious transactions.
- Problem gambling issues are also addressed, including provisions for self exclusion.
- Due diligence process will be more costly, with a proposed $10,000 fee increase.
- A new key person category has been added to the application process.
The aim of the regulations, says Collins, is to "show our detractors that we can supervise Internet gaming." They were written, at least partially, in an effort to assuage OECD demands and FATF concerns. Collins admitted, however, that Antigua will "never satisfy the U.S. government and the OECD."
"The only thing that will make them happy is if we shut down the entire industry," he concluded.
The Antigua Cabinet will likely debate the regulations next week. The new policies could be adopted within 30 to 60 days.
Click here to read the proposed regulations.
Click here to read the proposed license application.