2001-08-24
By Steve Gold, Newsbytes
ALDERNEY, THE CHANNEL ISLANDS,

Alderney, the smallest of the Channel Islands, a cluster of small isles located close to the north coast of France, has warned online gamblers about the dangers of using unprotected e-casinos. The States of Alderney, as the island's independent parliament is known, is planning to issue six e-gaming licenses to virtual casino operators, but is stressing that its regulatory framework is highly pro-active.

Moran Chapman, the chief executive of the Alderney Gambling Control Commission, told Newsbytes that the risks with online gambling are greater than simply whether the e-casino or sports betting site will pay out gamblers if they win.

There is also the issue, he said, of whether online gaming sites have sufficient security in place to protect their own interests, as well as that of their gambling clients.

"There are now several thousand online gaming sites worldwide," he said, adding that there are also around 60 jurisdictions in the world where e-gaming licences are issued.

"Obviously, I'm not going to comment specifically on these other jurisdictions, but I can say that our own approach is pro-active in protecting the interests of gamblers, as well as the commercial interests of the companies operating the sites," he said.

Chapman says that the security issue of e-gaming sites is one that some operators - even those who have existing bricks and mortar operations - could ignore.

"Our six licensees will be monitored for their systems protection, as well as how their online gaming operations actually work," he said.

Chapman added that Alderney already has two successful online sports betting sites, but is looking to boost its employment opportunities from online gaming with the six e-casino licenses.

"We have 2,400 people on the island, so the licenses represent a very real employment opportunity for us," he said.

The six licenses won't come cheaply, however, as each of them has an annual fee of $108,000 and are available for three years initially.

Alderney, which is the smallest of the three Channel Islands, is perhaps best known as a tourist paradise. The gaming commission says that firms which make successful license will be entitled to employ a maximum of ten staff based on the island.