Introduction

Antigua and Barbuda is a twin island state located in the Eastern Caribbean. The major island, Antigua, is 108 square miles in size with a resident population of approximately 65,000 with more than one-third of the population living in the capital city of St. John’s. Barbuda has a population of 1500 with its principal community in Codrington.

Additionally, Antigua and Barbuda (hereinafter referred to as “Antigua”) is a member of the Caribbean Community and Common Market (CARICOM), an economic organization of Caribbean States.

Antigua boasts of political stability with a parliamentary democracy fashioned from the British Parliamentary system and its laws are based on the English Common Law. Appeals from the Island’s High Court are to the Eastern Caribbean Supreme Court while the Final Court of Appeal is the Judicial Committee of the Privy Council in London.

English is the official language.

Antigua possesses the most thriving tourist industry in the Eastern Caribbean and with its modern, multinational community, enjoys one of the highest standards of living in the Caribbean.

Its financial services industry and commercial activities have grown tremendously since its Independence from Britain in 1981 and there has been the collateral development of a unique infrastructure to support its commercial and financial activities.

The combination of excellent service, modern corporate and fiscal legislation affords an extremely attractive environment for the establishment of offshore corporations and its international banks, local banks, law firms, tax advisors, accounting firms and trust companies service the needs of the financial services industry very well.

Interactive gaming and interactive wagering (“online gaming”) has become an integral part of the financial services industry in Antigua. Interactive gaming is a legal licensable activity in Antigua through the Interactive Gaming and Interactive Wagering Regulations, 2007, No.34 of 2007 (“The IGIWR”) and the International Business Corporations Act (The “IBC Act”). The IGIWR enables the Division of Gaming under the Financial Regulatory Services Commission (the Commission”). The IGIWR replaces and repeals earlier regulations under which interactive gaming companies have been registered since 1994. Antigua was one of the first jurisdictions to licence and regulate interactive gaming services.

Before the advent of gaming via the internet, Antigua had long legalized betting and gaming, having in 1963 introduced the Betting and Gaming Act, Cap. 47 of the Laws of Antigua. This piece of legislation restricts gaming to hotel establishments on the island. Any other form of gaming from any other unlicensed premises remains an offence contrary to the provisions of the Small Charges Act, Cap. 405 of the Laws of Antigua and Barbuda.

This requirement has over the years been relaxed without parliamentary approval and casinos have been allowed to thrive outside of the hotel environment as prescribed by law.

The chapter will firstly discuss the law relating to online gaming and then set out relevant issues relating to what is commonly referred to as ‘brick and mortar’ or traditional casinos.

Interactive Gaming and Interactive Wagering (Online Gaming)

Online gaming companies are classified as “Financial Institutions” and are subject to all the Anti-Money Laundering (“AML”) and Caribbean Financial Action Task Force (“CFATF”) requirements of the jurisdiction. All online gaming companies are subject to the Money Laundering Prevention Act 1996 (“MLPA”) and the Prevention of Terrorism Act 2001 (“PTA”).

Antigua is internationally regarded as a premier jurisdiction and its regulations and regulatory regime are first rate. Its focus is of a three-pronged nature namely: “money laundering prevention”, “player protection” and “industry enhancement”.

As a matter of interest, Antigua achieved an historical milestone as a developing country and most notably as one of the smallest member nations of the World Trade Organization (WTO) on March 24, 2004 when the Dispute Settlement Body (DBS) of the WTO delivered a most important decision in favour of Antigua on the issue of whether US laws, which prohibit Americans from gambling in offshore Internet casinos, such as those licensed in Antigua, amounted to an unfair trade barrier since it restricted the supply of gambling services notwithstanding the fact that US domestic online gaming companies, specifically horse race betting sites, were allowed to exist and operate legally there. Conjunctively the Appellate Body of the WTO affirmed the DBS findings when it ruled on April 7, 2005 in favour of Antigua in its Appellate Report. Once the US was found to be in violation, several other WTO members, including the European Union, were entitled to request compensation from the US as a result. This decision has further inspired the commitment of the Government of Antigua to the advancement of the online gaming sector and Antigua continues to solidify itself as a leader in this dynamic industry.

Taxation

Online gaming services are not subject to any form of taxation. Hence online gaming companies are exempt from income tax, capital gains tax, withholding taxes, estate, inheritance and succession taxes and taxes on dividends, interest or other return. Previously, companies involved in internet gaming, sports books and virtual casinos paid a 3% tax on gross handle, that is, gross take-in minus payouts to clients on bets. This provision was however repealed entirely in 2001.

The Application Procedure.

The application procedure in the Interactive Gaming and Interactive Wagering Regulations 2007, S.I. No. 34 of 2007 (the “Regulations”) is designed to elicit from the applicant, through the filing of statutory forms, as much information as possible so as to enable the Commission, through the Division of Gaming, to carry out its detailed enquiries and reach an informed decision as to the suitability of the applicant for a licence within 60 days of the application being lodged .

The applicant must be an International Business Corporation registered in Antigua and Barbuda limited by shares.

As part of the Commission’s enquiries to satisfy itself that the company is controlled by persons of integrity, and managed by persons of competence and integrity, detailed personal declaration forms need to be completed by each person who: -

(a) is a director, partner and chief executive officer;
(b) is the holder of 5% or more of the issued share capital of an applicant company;
(c) is a publicly traded company;
(d) has controlling interest in the applicant;
(e) is a key person in the applicant ; or
(f) is otherwise requested to do so by the Commission to include all beneficial owners of shares .

The personal declaration form requires full details of the individual and the members of his family (parents, brothers, sisters and dependants), marital information, educational qualifications, military service, arrests, detentions and litigation, passport and travel information, education/qualifications, employment history. The form requires the disclosure of all of the individual’s assets and liabilities with supporting documentation, if necessary. A source of funds declaration is also required. The Commission also requires the names of three referees who will be required to provide the individual with character references.

The Commission must carry out checks to independently verify that the information provided is correct and the applicant must give the Commission an ‘Authority For Release of Information’ for the purpose of such checks.

The Regulations provide that the Commission may grant an application for an online gaming licence only if it is satisfied that:-

(a) The applicant is a suitable company to hold an online gaming licence, and;
(b) each business or person associated with the product to be provided is suitable to be associated with a licensed provider’s operations.

The Regulations provide further that in deciding whether an applicant is a suitable company to hold an online gaming Licence, the Commission may have regard to the following matters:

(a) the applicant’s character or business reputation;
(b) the applicant’s good business reputation, sound financial position and financial background;
(c) the applicant has arranged, or is arranging, a satisfactory ownership, corporate or other business structure;
(d) the applicant has, or is able to obtain, appropriate resources and is able to maintain required reserves as established by the Commission in order to ensure that the players shall have winnings paid and deposits returned;
(e) the applicant has the appropriate technical ability to conduct interactive gaming or interactive wagering;
(f) the applicant has the appropriate business ability to conduct interactive games under an interactive gaming or interactive wagering licence;
(g) the applicant is committed to maintaining a physical presence in Antigua and Barbuda;
(h) the applicant shall follow appropriate policies and procedures to restrict underage gambling or wagering;
(i) the applicant shall follow appropriate policies and procedures to minimize behaviour associated with problem gaming or wagering;
(j) the applicant shall take appropriate measures to restrict and eliminate any pornography from a licensed site;
(k) the applicant shall take measures to discourage a compulsive or pathological gambler from utilizing a licensed site;
(l) the applicant is in the Commission’s opinion not tainted with illegality;
(m) the applicant shall follow policies and take affirmative steps to prevent money laundering and other suspicious transactions included but not limited to the financing of terrorism; and
(n) the applicant shall comply with the policies and directives which the commission deems appropriate .

The Commission shall consider whether each director, partner, chief executive officer and shareholder with 5% or more ownership of a controlling interest in the applicant is suitable based on the following:

(a) good character, honesty and integrity;
(b) good business reputation, sound current financial position and financial background; and
(c) general suitability to be associated with a licence holder .

The Regulations allow for the transfer of an interest in the licence holder from one person or entity to another. As with the initial application such a transfer is subject to the approval of the Commission which must consider ‘inter alia’ the extent of the interest to be transferred, the consideration and details of any other financial arrangements between the parties involved . So too does it require, the licence holder to report any material changes in the company, such changes to include a change in, or addition to the licence holder’s key person(s)or the director(s) or executive officers; any act or default impacting negatively on the reputation and financial background of the licence holder; a material reduction in the financial resources of the licence holder; a change in ownership of the licence holder; a change in control of the licence holder; a merger or acquisition of the licence holder and termination or suspension of a licence holder’s licence in another gaming jurisdiction .

Player Registration and Accounts Regulations

The Regulations provide that no gambling can be carried out until the player has been registered and holds an account with the licence holder . No person under the age of 18 may be registered and before an applicant for registration is registered, he must provide details of —

(i) his identity;
(ii) his date of birth; and
(iii) his place of residence .

A licence holder must not allow a registered player to participate in an authorized game until the player’s identity has been authenticated under the licence holder’s approved control system .

The licence holder must not allow a person under the age of eighteen (18) years to participate in operations related to the conduct of authorized games or to participate as a player . Winnings of any person under the age of 18 are subject to forfeiture by the Commission while any money held on deposit of which an underage person is the beneficiary, those funds shall be returned to the underage person .

The legislation aims to provide players with some protection from their own actions in the following ways:
1. The licence holder is required to post a warning, approved by the Commission, of the addiction possibilities of gambling and provide information to players to assist compulsive or pathological gamblers;
2. The player may request to be self excluded from a licensed interactive gaming or interactive wagering site by means of a telecommunications device. Once excluded, the payer may not be reinstated for a period of six months from the date of self exclusion; and
3. The player shall have the right to determine a maximum stake or wager, for example, $1,000. Once that $1,000 limit is established the licence holder may not allow that player to increase the maximum stake beyond $1,000 unless the licence holder has received 7 days written notice of such increase. .

Rules as to Players’ Accounts

The Regulations set out specific rules to be followed for the opening and maintenance of player accounts. The rules are established in order to allow the player direct access to the funds in the account, to play an interactive game or interactive wager with the licence holder and to obtain part or all of the amount paid into the account as a prize in an authorized game or as authorized by the licence holder or the Commission or to transfer an account to another account in the name of the player so long as the transfer is not suspicious in nature .

Save that the deposit of cash or currency is strictly prohibited , the rules below apply to the opening of an account. Accounts may be opened by any of the following methods:

(a) by credit card;
(b) by debit card;
(c) by electronic transfer;
(d) by wire transfer;
(e) by cheques; or
(f) by such other payment method approved by the Commission .

The licence holder is required to limit an individual player to one player account per system and the following set of rules apply to each account:
(a) no payment in excess of Five Thousand Dollars ($5000.00) may be made to a player from that player’s account unless satisfactory evidence of the player’s age, place of residence and identity has been provided to the licence holder;
(b) winnings or payments from the player’s account must, if possible, be made to the account from which the funds paid into the player’s account originated;
(c) if it is not possible to credit the account referred to in (b), above, with the winnings or payments the winnings and payments shall be mailed to the player at the player’s account address, once satisfactory evidence of the correctness of that address has been provided and in accordance with the control system; and
(d) a report on payments exceeding Twenty Five Thousand Dollars ($25,000.00) made to a player from the player’s account must be provided to the Supervisory Authority under the MLPA within 48 hours of being made ;

A licence holder must, at the request of the registered player in whose name a player’s account is established, remit funds to the credit of the account as directed by the player no later than five (5) business days, if practicable, after the request is received. Should the licence holder, at the request of the player, remit the funds to the player, it must be remitted in the name of the player whose identity has been provided to the player’s physical address, which is the verification location of the player. The licence holder shall be permitted to delay the payment of funds to the player if the licence holder reports fraudulent activity to the Commission or reasonably suspects suspicious activity .

Advertising Regulations

Every advertisement of interactive gaming and interactive wagering services relating to authorized games shall comply with the following general requirements:-

(a) it shall not be indecent, pornographic or offensive;
(b) it shall not be false, deceptive or misleading; and
(c) it shall not be intended to appeal specifically to minors .

Every advertisement is subject to the review of the Commission which may require the Commission to stop the advertisement being shown or to change the advertisement .

The Licence

Once the licence has been granted, the licence holder is not only required to comply with the Regulations but with all other conditions endorsed on the licence. The licence will specify :

(a) the full particulars of the licence holder;
(b) the date and issue of the licence and the date of expiration;
(c) the address of the certified premises from which the licence holder shall conduct its business;
(d) a statement that the licence is non-transferable;
(e) the licence number; and
(f) any conditions or terms attached to the licence .

As a condition of the licence the Commission will require a reserve of $100,000.00 or other acceptable similar security. The reserve must be paid into an account established by the Commission, for the benefit of any claimant against the licence holder to secure the faithful performance of the obligation of the licence holder with respect to payment of prizes and monies held on account for players The reserve requirement must remain in effect until cancellation of the interactive gaming or interactive wagering licence. It should be noted that in lieu of the reserve prescribed in the Regulations, an applicant or a licence holder may provide the reserve in another form prescribed by the Commission .

Breaches of the conditions attached to the licence or breaches of the Regulations themselves shall entitle the Commission to suspend or revoke the licence or may entitle it to assess a civil penalty against a licence holder in an amount not exceeding Five Thousand Dollars ($5000.00) per day for each day the breach or violation is outstanding, plus the Commission’s costs and expenses upon a finding that:

(a) the licence holder is no longer suitable to hold an interactive gaming or interactive wagering licence;
(b) the licence holder has been convicted of an indictable offence or other crime, especially one involving moral turpitude, which the Commission, in its sole discretion, deems to affect the suitability of the licence holder;
(c) the licence holder has contravened a material term or condition of the interactive gaming or interactive wagering licence;
(d) the licence holder has failed to discharge financial commitments for the licence holder’s operations or the Commission has reason to believe that such a failure in imminent;
(e) the licence holder is insolvent, has been petitioned into bankruptcy or has applied to take advantage of any bankruptcy law or has applied for or is compelled by any means or for any reason, to apply for an order to either discontinue or to wind up its operations or has appointed under the laws of any jurisdiction a trustee, receiver, manager, liquidator or administrator or has mortgaged or otherwise encumbered either the licence or business assets associated with the company’s operations without the approval of the Commission;
(f) the licence holder has obtained the licence through material misrepresentation;
(g) the licence holder has failed to take sufficient steps to report suspicious transactions that could indicate money laundering, has failed to verify the identity of a potential player, has accepted cash payments to player’s accounts, or is involved in any transaction that, in the opinion of the Commission, is either improper or illegal;
(h) the licence holder has sub-licensed or assigned its licence to a third party without the Commission’s approval;
(i) the licence holder has failed to maintain a physical presence in Antigua and Barbuda;
(j) the licence holder has failed to meet commitments to players;
(k) the licence holder has failed to pay licence and other fees in a timely manner;
(l) the licence holder has failed to comply with the requirements of the Commission; or
(m) the Commission, in its sole discretion, has determined that there is material and sufficient reason for suspending or revoking the licence .

It should be noted that before a licence is revoked or suspended the licence holder is guaranteed the right to be heard and the right to a fair hearing through a “show cause procedure” and the rules of natural justice apply to such a proceeding. The final decision by the Commission may be appealed to the Minister responsible for Finance and, thereafter, to the High Court of Justice .

Key Person Licence

The Regulations requires a Key Person(s) to be licensed by the Commission . A key person is an individual who in relation to the licence holder occupies or acts in a managerial position, operations director position or carries out managerial functions. He may be a person in a position to control or exercise significant influence over the systems or operations conducted by the licence holder. He may be a supervisor of persons responsible for the control system, including operational and monetary control, the Information Technology Director and the Client Service Provider.

The Commission will consider in relation to each key person applicant the following:

(a) the applicant’s good character, honesty and integrity;
(b) the applicant’s good business reputation, sound current financial position and financial background; and
(c) the applicant’s general suitability to carry out the functions of a licence holder .

The Commission may, on its own motion and with notice to the licence holder, register any person whom it reasonably perceives to be a key person and shall issue a key person licence on such conditions as it considers necessary for the proper conduct of interactive games and as are desirable in the interest of the public .

The Key Person licence will subsist for a term of one year but may be revoked or suspended for any of the following reasons:

(a) the licence holder in not, or is no longer, suitable to hold a key person licence;
(b) the licence holder has been convicted of an indictable offence, or an offence involving moral turpitude;
(c) the licence holder has contravened a condition of the licence;
(d) the licence holder has contravened a provision of the IBC Act or the Regulations or gaming laws of any other jurisdiction;
(e) the licence was obtained by a material misrepresentation; or
(f) any act, omission or conduct of the licence holder that, in the opinion of the Commission, affects the integrity of the interactive gaming or interactive wagering or affects the public interest in an adverse and material manner .

Application and licence and Other Fees

A non-refundable application fee of Fifteen Thousand Dollars ($15,000.00) is payable with the licence application for the costs and expenses of conducting the investigation, due diligence, review and assessment of the applicant.

A Reserve Fund established with the Commission of One Hundred Thousand Dollars ($100,000.00).

An annual licence fee of One Hundred Thousand Dollars ($100,000.00) is payable by the licence holder in respect an interactive gaming licence and Seventy Five Thousand Dollars ($75,000.00) is payable in respect of an interactive wagering licence . The licences are granted for a period of one year, after which they are subject to renewal.

On a renewal of the licence, a licence holder will be required to pay to the Commission a non-refundable fee of Five Thousand Dollars ($5,000.00) .

On an application for a key person licence a non-refundable deposit of One Thousand Dollars ($1,000.00) must be tendered to the Commission whilst a licence fee of One Thousand Dollars ($1,000.00) will be payable for the first year of the licence and Two Hundred and Fifty Dollars ($250.00) for each subsequent year thereafter .

Where a person or a group of persons propose to acquire control of a licence holder, a request for the Commission’s approval must be accompanied by a non-refundable deposit of Ten Thousand Dollars ($10,000.00) .

There is also imposed and annual Monitoring Fee of a minimum Twenty Five Thousand Dollars ($25,000.00)

Control Systems

The Commission recognizes that the potential for money laundering presents a risk to all forms of gaming, including interactive gaming and wagering, and therefore requires the use of a computerized monitoring system approved by it. It is required that the system, including software, hardware and systems affecting the outcome of authorized interactive gaming or wagering, should be capable of detecting potential money laundering activity by analyzing the realtime transactions and user profiles and associating those with known and emerging risk profiles. These activities include, but are not limited to, detecting a high volume of, or high dollar amount transactions from, a narrow range on Internet Protocol (“IP”) addresses; detecting a high volume of, or high dollar amount transactions from a narrow range of Bank Identification Numbers (“BIN”) where available; detecting unusual betting patterns associated with money laundering; and detecting attempts to invade thresholds . The system must be designed to detect and alert the licence holder, who in turn shall notify the Commission immediately.

This control system must be submitted to the Commission in writing at least 90 days before the licence holder proposes to commence operations .

In summary, the licence holder’s control system submission to the Commission should include:

1) representations of accounting systems and chart of accounts;
2) copies of all accounts held at financial institutions (bank accounts, payment provider accounts, etc.)
3) financial reconciliations and controls to ensure financial adequacy;
4) an organizational chart including roles, responsibilities and delegations;
5) copies of administrative systems, policies and procedures;
6) descriptions of information systems including logical access control;
7) descriptions of change and configuration management systems;
descriptions of business continuity and disaster recovery;
9) descriptions of operational systems including terms and conditions and rules of games;
10) descriptions of physical and environmental security and physical access control;
11) descriptions of systems relating to the secure processing, recording and maintenance of all gaming, wagering, and financial transactions (including but not limited to gaming equipment);
12) copies of responsible gaming and wagering policies and procedures;
13) copies of the restriction of underage gaming and wagering policies procedure;
14) copies of anti-money laundering policies and procedures; and
15) a listing of all Uniform Resource Locators (URLs) or domain names associated with the licence holder .

In relation specifically to anti money laundering, the provisions of the MLPA, as amended, is paramount, although the Commission is authorised to make rules and set procedures for the licence holder to know its players, customers and business associates; protocols for licence holders to recognize, address and question suspicious or possible fraudulent transactions that might lead to illegal activities concerning players’ accounts; AND requirements for licence holders to monitor and report suspicious transactions concerning players’ accounts to the commission or to the Supervisory Commission of the Office of National Drugs and Money Laundering Control Policy (“ONDCP”) pursuant to the MLPA .

Suppliers

The Commission may require the disclosure of suppliers or entities that have a contractual relationship with the licence holder whether or not they receive a percentage of the winnings, turn over or game play of an interactive gaming licence holder. As such, payment processors must be identified by the licence holder to the Commission prior to utilisation and no licence holder may utilize an unidentified payment processing system .

Physical Presence

The Regulations mandate that the licence holder must maintain a physical presence in Antigua. In determining whether this criterion is met, the Commission will consider the following:

(a) whether the primary servers on the licence holder are located in Antigua and Barbuda;
(b) whether at least one director is resident in Antigua and Barbuda; and
(c) whether the majority of key persons are resident in Antigua and Barbuda .

In any case, the licence holder must have its primary servers located in Antigua and Barbuda, which shall, as a minimum requirement, contain all information relating to all players, including game history, financial history and current liabilities .

Further, any approved interactive gaming equipment used by the licence holder must be situated at approved premises and must be secure from unauthorized persons. The location of any backup server must also be disclosed to the Commission.

The licence holder is prohibited from conducting gaming activities outside of Antigua and Barbuda unless it is also operating outside of Antigua and Barbuda pursuant to the laws of that other jurisdiction. The other jurisdiction in which the licence holder is also operating must be disclosed to the Commission and the Commission must approve of the business being conducted there by the licence holder .

Approved Equipment and System

The Commission is entitled by the Regulations to maintain standards, specifications and guidelines in relation to gaming equipment and systems and requires a licence holder to submit to agencies approved by the Commission its interactive gaming system for testing prior to commencement of operations. Thereafter the licence holder must certify to the Commission that the testing was satisfactorily accomplished. The certification must confirm the following:

(a) the name of the owner of the software or system;
(b) the name of the testing agency;
(c) the professional credentials of the testing agency;
(d) the gaming programme(s) present on the software;
(e) the server protocols, communication protocols and other specifications;
(f) whether the system is fully secure and guaranteed;
(g) whether the software can be changed without having to rewrite the entire software programme;
(h) any other material information regarding the specific software;
(i) a declaration that the gaming programmes in the software are fair and reliable;
(j) a declaration that the equipment includes functionality to restrict problem gamblers and underage gamblers and detect money laundering; and
(k) a declaration that the gaming equipment complies with applicable specifications, standards or guidelines issued by the Commission .

Annual Review

In the exercise of its supervisory authority over the licence holder, the Commission shall review at least once per year the books, accounts and financial statements of the licence holder for the financial year at the licence holder’s expense . The review is designed to establish whether there has been compliance with the conditions of the licence and with the regulations. It is also intended to establish whether there has been compliance with the MLPA, the PTA and any other directions or guidelines set by the Commission. It will inquire into the solvency of the licence holder, its capital adequacy, its reserves and its management of players’ funds . An annual examination will also be made into the control systems of the licence holder .

Reporting

The licence holder is required to file with the Commission the following reports:

(a) semi-annual statement of assets and liabilities;
(b) annual audited statements no later than 90 days after the end of the financial year to which it relates;
(c) annual certification of incumbency;
(d) such other returns as may be required;
(e) on a monthly basis, all complaints and disputes concerning
(i) underage gaming or wagering,
(ii) compulsive, problem or pathological gaming or wagering, or
(iii) fairness
(f) any fraudulent or suspicious transaction that may involve money laundering, within 24 hours of such a transaction occurring .

Gaming Offences

The following offences are created by the Regulations:

(i) In relation to an authorised game, dishonestly obtaining a benefit by any act, practice or scheme, or otherwise dishonestly obtaining a benefit through the use of any device or item;
(ii) Obtaining, or inducing a person to deliver, give or credit any money, benefit, advantage, valuable consideration or security;
(iii) Directly or indirectly forging or altering a gaming record;
(iv) Knowingly using or attempting to use a forged or altered gaming record;
(v) Impersonating a licence holder, an agent, a key person, a member of the Commission or anyone acting in an official capacity under the Regulations;
(vi) As a member of the Commission, ask for, receive or obtain, or agree to receive or obtain, any money, property or benefit of any kind for himself or another person for an improper use;
(vii) Giving, or promising or offering to give, any money, property or benefit of any kind to, any member of the Commission or a member of the Commission or to anyone acting in an official capacity under any law in force in Antigua and Barbuda for an improper use;
(viii) The taking part in an authorised game by any employee if the employee is directly involved in functions related to the conduct of the game;
(ix) Allowing an underage person to participate in internet gaming or internet wagering
(x) Allowing problematic or pathological gaming or wagering to occur; and
(xi) Allowing players to be treated unfairly by internet gaming or internet wagering systems .

Any person who commits the above offences shall be liable on conviction to a fine not exceeding Fifty Thousand Dollars ($50,000.00) or to imprisonment for a term not exceeding five (5) years. Prizes won under circumstances in which the above offences are proved shall be forfeited to the Commission .

Brick and Mortar Casino Establishments

The licensing of ‘brick and mortar’ casinos is governed by the Betting and Gaming Act, Cap.47 of the Laws of Antigua (“the Act’), the Betting and Gaming (General Control of Gaming Premises) Regulations (“the Gaming Premises Regulations’) and the Betting and Gaming (Control of Games) Regulations (‘Control of Games Regulations’).

The Act empowers the Minister of Finance to grant betting and gaming licences .

The Licence

Licences may be issued to any person who owns or manages a hotel and who has the means of establishing a gaming room suitable for tourists and which gives to tourists the freedom of its facilities . The licence may be subject to the condition that the licensee shall comply with certain requirements as to the establishment, expansion or improvement of particular attractions and accommodations for tourists at the place where the hotel is already established .

The applicant for a gaming licence is required to submit to the Minister the following:

(a) A representation that the applicant owns/manages a hotel which gives tourists the freedom of its facilities;
(b) A list of the games he proposes to conduct on the premises;
(c) An Oath of the applicant or some other person verifying that the applicant has not been convicted of a felony or a misdemeanour involving moral turpitude;
(d) In case of a company, an Oath of all the directors and shareholders verifying that they have not been convicted of a felony or a misdemeanour involving moral turpitude;
(e) Two character references of the applicant; and
(f) All information regarding the applicant’s place of gambling, his employees, the owners and shareholders and stockholders .

A gaming licence shall show the date of commencement of the licence and shall run for a period of 12 months, subject to its further renewal .

Licence Fees

Licence fees payable to the Commissioner of Inland Revenue are as follows:

(a) In a hotel of 80 or more rooms the sum of One Hundred and Eleven Thousand Dollars ($111,111.00); or
(b) In a hotel of less than 80 rooms the sum of Thirty Seven Thousand and Thirty Seven Dollars Eastern Caribbean Currency (37,037.00) .

Restrictions under the Licence

The following restrictions and conditions are created under the licence:

(1) No person shall be allowed in a gaming room in a state of drunkenness;
(2) The licence holder may prohibit admission into the gaming room of anyone whom he believes will be a hindrance to the operations thereof;
(3) In regulating admission into a gaming room no discrimination by reason of race, colour, religion or social condition shall be made;
(4) No licence holder shall offer by advertisement his facilities for gaming to the public of Antigua and Barbuda, or publicize in Antigua and Barbuda his place for gaming in newspapers, magazines, the radio or any other form of advertisement that will reach the public directly;
(5) The gaming rooms shall be closed throughout Good Friday;
(6) No person under the age of 18 years shall be admitted into a gaming room;
(7) No facilities for seeing any television broadcast or hearing any sound broadcast shall be provided or allowed to be used in the gaming rooms and neither the licence holder nor any servant or agent of his shall cause or permit such facilities to be provided in any place under his control in any such manner that they can be enjoyed by persons resorting to the gaming rooms;
(8) No music, dancing or other entertainment shall be provided or allowed;
(9) No gaming room shall be open between 4.00am and 9.00 pm of the same day unless such times for non-closure are adjusted by the Minister in consideration of a fee fixed by him;
(10) No alcoholic beverages shall be served in a gaming room in the licensed premises; and
(11) No gaming room shall be opened at any time that it are required to be closed by the regulations .

Any violation of the terms and conditions of a valid licence, the licence holder shall be guilty of an offence and shall be liable upon summary conviction to a fine not exceeding Twenty-Five Thousand Dollars Eastern Caribbean Currency, or to imprisonment for a period not exceeding six months, or to both fine and imprisonment .

Supervision of Licence Holder

The Act and the Regulations provide for the appointment of Casino Inspectors who are permitted to visit and inspect licensed premises at any time to ascertain whether the Act or any regulations applicable to the licensed premises are being contravened. As such, the Inspectors may require the licence holder to produce any books or documents relating to the gaming business which they are free to examine and to take copies of and to make inquiries upon . Any licence holder who refuses to permit any inspector or officer, after production of his authority to enter into any licensed premises, or obstructs such an inspector or officer in the discharge of his functions is guilty of a contravention of the Regulations .

The Regulations also prohibit any game being played in any licensed premises in the absence of the Casino Inspector . In case the licence holder, his agent or employee acts in contravention of the Act or any regulations made under the Act or Regulations it is the duty of the Inspector to intervene to prevent the violation and to report same a Board appointed by the Minister of Finance for action .

Taxation

A Gaming Tax is charged in respect of gaming at licensed gaming premises at a rate of fifteen per cent of the total amount collected in respect of gaming by the licence holder . This tax is payable daily to the Commissioner of Inland Revenue together with a prescribed return . A licence holder is therefore required to keep and maintain a daily record of the amount collected in respect of gaming and this record shall be made available for inspection of the Commissioner of Inland Revenue . Should the licence holder fail to make the payment as prescribed, he shall become liable to a penalty being ten percent of the amount that remains unpaid. Should non payment of tax due last for six days, the Commissioner of Inland Revenue may authorise the levying of a distress upon the goods, chattels, and effects of the licence holder .

Where a licence holder fails to account for, or to pay tax due or refuses to furnish the return as prescribed by the Act he is guilty of an offence and is liable on summary conviction to a fine of Nine Thousand Two Hundred and Sixty Dollars and to imprisonment for a term of one year . In addition, any person who hinders the Commissioner of Inland Revenue in the performance of his duties or exercise of his authority in relation to the licence holder is guilty of an offence and is liable on summary conviction to a fine of Three Thousand Seven Hundred and Four Dollars ($3704.00) and to imprisonment for a term of one year .

Other Regulations

The Control of Games Regulations sets out in considerable detail regulations which govern the following:

1. The attire of croupiers and employees on duty;
2. The conduct of croupiers and employees;
3. The conduct of players;
4. Order in gaming rooms;
5. General rules for the games;
6. Conditions applicable to all games;
7. Unauthorised Instruments of gaming;
8. Control of Slot Machines; and
9. Authorised games .

The schedules to the Control of Games Regulations set out extensive rules on the following games:

(a) Roulette;
(b) Craps; and
(c) Black Jack

Description of author

Arthur G. B. Thomas was called to the Antigua Bar in 1991 and since then has been engaged in private legal practice in the areas of corporate and commercial law, civil litigation, land law, intellectual property, and banking and insurance for the most part. He has a specialist interest in all forms of gaming law and acts on behalf of a number of interactive gaming and interactive wagering companies licenced in Antigua and Barbuda. He has acted for gaming operators since 1994 and is a general member of the International Masters of Gaming Law.
Arthur read law at the University of the West Indies, Cavehill Campus, Bridgetown, Barbados from 1986 to 1989, graduating with a Bachelor of Laws Degree, Upper Second Class Honours. From 1989 to 1991 he attended the Norman Manley Law School, Kingston, Jamaica where he completed the Legal Education Certificate; the professional qualification which allows Caribbean trained lawyers to practice in all of the English-speaking Caribbean with a common law tradition. He holds a Master of Laws Degree in International Taxation from Regent University, Virginia, USA.