NEW RESTRAINTS ON UK ONLINE GAMBLING IMMINENT

Sunday July 10,2011 : Culture Secretary's review spurred by Black Friday
 
The events of Black Friday in the United States  have probably added momentum to British Culture Secretary Jeremy Hunt's review of UK online gambling, The Guardian newspaper reported over the weekend.
 
Hunt is preparing to radically overhaul online gambling licensing rules, reportedly to ensure that the Exchequer gets his cut through new advertising restrictions on offshore operators, and British players are better protected.
 
A spokesman for the Ministry told The Guardian that the events surrounding Full Tilt Poker highlights "…why the government is looking at reforming how overseas-based operators are regulated," adding that the ministry hopes to make an announcement in the next few weeks.
 
The UK government recently completed a wide-ranging consultation on online gambling. Under current rules offshore companies can advertise and operate without being licensed by the UK Gambling Commission as ministers rely on the strength and integrity of approved overseas regulators, particularly those within the EEC.
 
Full Tilt and its bigger rival PokerStars have spent millions advertising in British media in recent years and are among the most popular sites with UK players.
 
Pokerstars, which is licensed in the Isle of Man, appears to have emerged from the US debacle rather better than its rivals, refunding US players and avoiding scandal.
 
This is in contrast to the other two companies involved in the American enforcement action, Full Tilt and the Cereus network, which have yet to pay players and have been found wanting in useful public communications, losing business and traction in other markets due to (in the case of FTP) suspended licensing.
 
The Guardian approached the Isle of Man to enquire if it applies a "fit and proper" test to licensees, and was told by Steven Brennan, chief executive of the Isle of Man Gambling Supervision Commission: "The GSC thoroughly checks and vets every director and key official of any online gaming company … It has the authority, and has used it, to turn down any company where it feels the company or the owners could bring the island into disrepute."
 
The Isle of Man appears to have more stringent ring-fencing requirements on player deposits than other jurisidictions.