Successful Gambling Regulation

The crux
Online gaming activity is set to top $24.5 billion by 2010 yet widespread global regulation of the industry has yet to take place. The online gambling industry is headquartered almost entirely outside the United States, but almost half its customers reside in the United States. While the United States prepares to open its doors to regulating online gambling, another lesser-known entity is already cashing in, big time.

Alderney - a tiny island some 30 km off the coast of Guernsey- with a population under 2,500, has struck gold. They are now home to a regulated online gambling community and it's already paying dividends. Its Gambling Control Commission has contributed $6.2 million towards the development of its commercial quay and the money just keeps on coming.

License fees for online casinos cost around £70,000 per annum, and the goal is to get 100 casinos signed up within 3 years. The number of licensed companies in Alderney spiked from 25 to 34 last year. Already gambling takings have translated into £4.2 million cash in the bank.

The process
If applicants can prove their games are fair and honest - with the protection of minors and addicts in mind, that their management is not linked to the underworld then they are eligible to apply. The benefits for getting regulated (white-listed) in Alderney: limitless bandwidth, zero-rated corporation tax, plus freedom to maintain a legitimate and profitable gambling operation. According to Robin le Prevost, e-commerce development head for the States of Alderney, "Interest in Alderney has never been higher."

It is unrealistic to prohibit Internet gambling because regulation and internal compliance provides revenue and checks and balances on an industry that is experiencing unparalleled growth. Likewise the tiny island of Malta is set to have at least 147 online gambling companies regulated. Perhaps the time has come for other countries to take notice?