DEPARTMENT FOR
CULTURE, MEDIA AND SPORT News Release (090\2007) issued by The
Government News Network on 9 August 2007
One thousand
gambling websites face advertising ban
A Government crackdown on gambling adverts from places that
don't meet the UK's strict regulatory standards will
lead to about one thousand gambling websites being banned from
advertising in the UK.
Regulations to be laid in Parliament today use new powers in the
Gambling Act 2005 to ban gambling adverts from companies operating
outside the European Economic Area (EEA). The move means that some
popular gaming websites will not be able to advertise in the UK
from September 1st 2007, when the Gambling Act comes into force.
Independent research suggests there are around 2,300 gambling
websites worldwide. Antigua is considered to have the largest
number with around 537 sites followed by Costa Rica (474),
Kahnawake (Canadian Reservation) (401) and the Netherlands
Antilles (343).
Jurisdictions who wanted to be exempt from the ad ban had to pass
a stringent assessment of their regulatory standards.
The Secretary of State for Culture, Media and Sport, James
Purnell, has rejected applications to join the exempted
'white list' from Alexander (Canadian Reservation),
Netherlands Antilles and Tasmania. Applications from Kahnawake and
Antigua are still being considered.
Gambling operators in jurisdictions that did not apply to be
white listed are also automatically banned from 1st September too.
These include major online gambling centres like Costa Rica and Belize.
Sites such as William Hill Casino, Betfred Casino and Poker,
Interpoker.com and Littlewoodscasino.com are all currently based
in non-white listed jurisdictions.
Only Alderney and the Isle of Man were able to demonstrate that
they had in place a rigorous licensing regime designed to stop
children gambling, protect vulnerable people, keep games fair and
keep out crime. Countries in the EEA did not have to apply to be
white listed.
James Purnell said:
"I make no apology for banning adverts for websites
operating from places that don't meet our strict standards.
Protection is my number one priority. The fact that only Alderney
and the Isle of Man have been able to meet the high standards
demanded by our white listing criteria shows how tough the
Gambling Act is. Indeed white listing has actually helped drive up
regulatory standards in some countries.
"The Isle of Man, for example, has made significant
improvements to their regulatory regime in order to secure a place
on the white list. This includes requiring all licensees to make
contributions to problem gambling research, education and
treatment in line with requirement on UK operators."
The ban will apply to all forms of gambling advertising from
excluded jurisdictions including TV, radio, newspapers, magazines,
taxis, buses, the tube and some websites. If operators,
publishers, broadcasters and advertising companies break the
rules, they could face fines or even imprisonment.
The Department for Culture, Media and Sport, will keep under
review Alderney and the Isle of Man's regulatory regimes to
ensure that they continue to meet the white list criteria.
Figures recently published by the Gambling Commission found that
over the four quarters to June 2007, 8.6% of the 8,000 adults
surveyed had participated in at least one form of remote gambling
in the previous month. If those only playing the National Lottery
remotely are excluded, 5.9% of respondents had participated in
remote gambling.
Notes to editors
1. The Gambling Act 2005 bans companies based in countries,
territories or jurisdictions outside the EEA from advertising
foreign gambling in the UK, unless they can demonstrate that they
have a satisfactory regulatory regime in place including measures that:
* act to protect children and vulnerable people from being harmed
or exploited;
* keep out crime;
* ensure that gambling is
conducted fairly;
* enforce compliance; and
* ensure
gambling operators are subject to rules on money-laundering and
financial probity.
2. Jurisdictions also had to demonstrate that they adhere to fair
tax principles. In particular, they were judged on openness, equal
availability and equal treatment.
3. Guidance setting out the criteria that the Secretary of State
employed when considering whether to permit gambling operators
based in a country, territory or jurisdiction outside the EEA is
available from the DCMS website.
4. For companies not based in whitelisted jurisdictions to be
able to advertise in the UK they need to move to the EEA or a
jurisdiction on the white list or the jurisdiction in which they
are based need to successfully reapply for a place on the white list.
5. The EEA comprises all member states of the EU plus Iceland,
Liechtenstein, Norway. In this case it also includes Gibraltar.
6. Betfred Casino and Poker, Interpoker.com and
Littlewoodscasino.com are all currently based in Netherlands Antilles.
7. The Gambling Act introduces a new regulatory regime for
gambling advertising, standardising rules across the industry.
Strict advertising codes of practice will be overseen by the
Advertising Standards Authority which will bar advertisers from:
encouraging irresponsible or excessive gambling; seeking to harm
or exploit children, the young, or other vulnerable persons;
directing advertisements at those under 18; or featuring people
who seem to be under 25. The Gambling Commission and Ofcom will
also have power to take action against gross or repeat offenders
which, if convicted, could lead to imprisonment and/or a fine.
8. In addition to the ASA codes an industry voluntary code will
also see a ban on gambling ads on children's replica sports
kits, a ban on broadcast adverts before a 9pm
'watershed' and the inclusion of gambling awareness
signposting in adverts.
9. RSe Consulting was commissioned by DCMS to conduct an
independent literature review and statistical analysis of remote
gambling in 2006. This can be found at: http://www.culture.gov.uk/NR/rdonlyres/E0A395C1-35CC-4717-BF00-B1F6BD3A6B76/0/RemoteGambling_RSeReport.pdf
and http://www.culture.gov.uk/NR/rdonlyres/89D59ABD-A1F6-4106-B922-2293997EF841/0/RemoteGamblingAppendix_RSeReport.pdf
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