Financial Services Regulatory Commission
Division of Gaming

MEMORANDUM

To:                   All Licensed Interactive Gaming and Interactive Wagering Corporations incorporated under the International Business Corporations Act Cap 222. of the Revised Laws of Antigua and Barbuda

Cc:                   Board of Directors, Financial Services Regulatory Commission
                        Mr. Leroy King, Administrator

From:                Ms. Kaye McDonald, Director of Gaming

Date:                October 12, 2006

Subject:           The Provision of Interactive Gaming and Interactive Wagering

 

The Financial Services Regulatory Commission, Division of Gaming wishes to advise that the provision of gambling and betting services are provided under Section 351 of the International Business Corporation Act, Cap 222 (IBC, Act) and the Interactive Gaming and Interactive Wagering Regulations (IGIWR).  The licence is non-transferable and sub-licensing is prohibited as set out in the Interactive Gaming and Interactive Wagering Regulations. 

The licence permits such entities to conduct the business of online gaming internationally in accordance with our regulations. Our regulations stipulate that servers are located in Antigua and Barbuda and bets are accepted from customers anywhere in the world, save and except in the Caricom region.
                                                                                    
The Commission has had no cause to re-assess the provision of such services and continue to provide same according to the IBC Act and the IGIWR. It is our belief that gaming companies domiciled in Antigua and Barbuda satisfy suitable levels of corporate governance and internal controls in accordance with our laws, regulations and prudential management guidelines.

The recent action taken by the United States Government to pass the “Unlawful Internet Gaming Enforcement Act, is a matter of interest and great concern to the Commission, particularly the impact and potential applicability of the “Unlawful Internet Gambling Enforcement Act” (UIGE, Act) on your operations and financial service providers once signed into law.  Certainly the legal context of the UIGE Act appears to conflict with the laws and regulations of Antigua and Barbuda, under which our gaming entities are licensed to operate but most importantly contrary to the United States of America’s commitment to Antigua and Barbuda under Section 10.D of the World Trade Organization General Agreement on Trade in Services to allow “market access” to gambling and betting services.   

Notwithstanding the above, we are acutely aware that this will have an adverse material impact on your operations, likewise the jurisdiction. However, we hope that your business alternatives and/or decisions are formulated in a comprehensive manner, taking into account your legal and regulatory obligations under the laws of Antigua and Barbuda and the underlying risks involved.