By Diana Guerrero, journalist at G&M News.
Alderney was one of the early jurisdictions to regulate online gambling. What did that pioneering role represent, and how has the Commission evolved since then?
Alderney’s pioneering role proved that online gambling could be licensed rigorously by a small, independent jurisdiction. This was achieved through robust market entry controls, technical oversight of the product, a structured license architecture and credibility through cooperation. Much of what was achieved early on became a model for later regulators. Since then, the market has shifted to point-of-consumption licensing and AML/CFT has become the dominant priority. The Commission has responded by continuing to evolve as a tier-one regulator that facilitates market access, both alongside domestic frameworks and in markets where local regimes have yet to develop, while maintaining a robust licensing and regulatory regime with international credibility.
How would you describe Alderney’s gambling ecosystem today? How many online gambling operators are currently licensed by the AGCC, and what can you tell us about their profiles, the markets they serve, and the types of products they offer?
Today, Alderney is a small high-standards jurisdiction that has gained international recognition, with licensees that stand behind hundreds of consumer brands. The AGCC licensee base includes established multinational groups, B2B suppliers, and a diverse range of business operating models. Alderney is a base for supplying platforms and services to worldwide markets, alongside local licensing in the countries where customers are based as applicable.
Let’s talk about numbers. What are the latest figures available for the Commission’s revenue and the gambling sector it regulates? How have these figures changed in recent years, and what are the main factors driving those trends?
Traditionally, the Alderney license provided access to the UK and European markets and, until recent years, UK-based customers made up the majority of players registered with Alderney licensed operators. That position has changed, with the majority of players now registered in over 130 different countries, as Alderney started to attract high-quality international operators. We have seen existing and previously UK centric operators expand out into other markets through growth and supported by the expertise within the Commission, providing guidance and support as operators mitigate the risks inherent with higher risk jurisdictions. Today, we find ourselves back in that pioneering role that Alderney spearheaded during the early 2000s.
Player protection is a major priority for gambling regulators. What data does the AGCC have on gambling-related harm among players using Alderney-licensed operators, and what measures are the Commission and its licensees taking to identify risky behavior and prevent gambling-related harm?
The AGCC has robust customer management requirements. The Commission has a risk-based approach to supervision with data on gambling related harm collected through regulatory submissions for desk-based review, and on-site inspection of operators’ systems. Each AGCC licensee has a dedicated relationship manager, allowing the Commission to develop a detailed understanding of the licensee’s business and risk profile, and to work closely with them to identify and mitigate risks. Our legal framework facilitates that approach, allowing the Commission to adapt its oversight as appropriate. Where an Alderney licensed operator is not subject to prescriptive measures through an ancillary national framework, focus is paid to the detection and handling of potential gambling related harm, and our supervisory function works alongside operators in the implementation of any required remedies.
Alderney has signed a memorandum of understanding with Ireland as the country develops its new gambling regulatory framework. How is that cooperation progressing, and what opportunities does it create for both jurisdictions? Does the AGCC have similar agreements with other regulators, and how important is international cooperation in today’s regulatory landscape?
Alderney maintains formal links with all peer regulators and publicly supports sector development. For Alderney, cooperation is close to essential as the Commission supervises groups where customers, staff, servers and management are mostly outside of our territory. This makes other regulators a valued source of intelligence.
What are your main priorities as the AGCC’s new executive director? How is the Commission preparing for emerging technologies such as artificial intelligence and cryptocurrencies, and are there any regulatory initiatives or strategic changes you expect to pursue in the near future?
Alderney’s regulatory framework was originally designed in 1999 to be adaptable. Much of the existing legislative architecture already accommodates developments in technology and changing business models. Our risk-based approach, dedicated relationship managers and focus on licensees’ internal control systems allow us to respond to emerging risks and developments, with refinement to the framework if necessary. This changing landscape presents opportunity, but also a threat, as operators are moving into markets with higher financial crime ratings. Within those markets we are also seeing higher risk payment services deployed, driven by financial exclusion. Our proven track record in supervision of higher risk operating models makes Alderney attractive to well-governed operators that want a safe pair of hands in a regulator, particularly when entering into higher risk markets for the first time. Likewise, the strength of our supervision, in combination with a well-established yet agile AML/CFT framework, makes us well placed to support Alderney licensed operators as they navigate emerging technologies. With product offering considered at an operational level, Alderney has already successfully enabled operators to react to risks, trends and emerging products, such as prediction markets and AI customer chat functions, ensuring the Alderney licensed business has the ability to deliver quickly. Likewise, Alderney is nearing the end of its development phase regarding cryptocurrencies and aims to deploy mitigating measures to its operators within the coming months.