Tony Alan reports on the latest updates

This year’s annual KPMG Gibraltar eSummit was held with exceptional timing on Thursday 12th June, the day after the announcement that the UK and and EU had agreed the core terms of a treaty in respect of Gibraltar.

It meant that delegates at the event were among the first to hear what this meant for Gibraltar – and the eGaming industry in particular – from Chief Minister Fabian Picardo who rearranged his schedule to make a surprise appearance and talk directly to the capacity audience at the Sunborn Yacht Hotel.

Border fluidity

Declaring that the sovereignty of Gibraltar had not “In any way been compromised”, the Chief Minister said the agreement offered “complete fluidity across the frontier”, for the two key elements that move across frontiers: people and goods.

The agreement achieved what the government had set out to do, he said: “To give you and your industry the ability to have people live on the other side of the frontier and come in and out of Gibraltar every day without having so much as to flash an ID card, let alone a passport.

Brexit chaos

“To give you the ability to recruit and retain the people you need not just to stay the way you are but to make you more successful in the future. To grow the business that you do in Gibraltar and grow the type of business we
can do in Gibraltar”.

After the chaos of Brexit, he added, he hoped delegates would see the terms of the agreement as “a hugely positive agreement” for Gibraltar, the region and, in particular, the gaming industry.

Tier 1 jurisdiction

Attendees at the event, which draws Gaming professionals from across Europe, had already heard from Trade and Justice Minister the Hon Nigel Feetham who was equally enthusiastic about terms of the Treaty and how it would help support Gibraltar’s position as a Tier 1 jurisdiction for the sector.

Explaining that no sector was “more important in terms of its economic contribution to Gibraltar than the gambling sector,” he said the agreement would provide stability and a “safeguard for our collective future”.

Gambling Act

Minister Feetham also said that the long- awaited update to the Gambling Act could now be progressed and indicated that Gibraltar was prepared to consider accepting market leading
operators in crypto gambling who wanted to move into the regulated space.

“As a jurisdiction, we must embrace growth in areas where technology is shaping the global landscape,” he added. “We simply cannot afford to be left behind”.

Gibraltar Gambling Commissioner Andrew Lyman reiterated that the new Gambling Act would address changes in the operational models of eGaming businesses and bring associated services such as marketing into scope. This would give greater flexibility and scope for multi-jurisdictional gaming operators and updated powers to the Gibraltar Gambling Commission to ensure Gibraltar maintained its strong reputation as a responsible and respected regulated territory.

Crypto currencies

Elsewhere at the conference, the Hon. Albert Isola KCB MP moderated a session on the use of crypto currencies in the sector while industry consultant Simon French reflected on capital market trends over the last 20 years followed by sessions on M&A activity from both operator and legal perspectives. Robin Chhabra from Tekkorp Capital hosted a discussion on opportunities in the Latin American market and Dan Waugh from Regulus Partners explored possible regulatory threats to the UK industry.

It was important for the industry to address this, he said, and reframe conversations. “Operators must focus and champion the best interests of their customers,” he warned, “Both in terms of enjoyment and harm prevention. The consumer is all too often by-passed in a debate that focuses instead on harm, taxation, jobs and the black market.”

ESG

A further panel session looked at the question of whether Environment, Social and Governance (ESG) is itself sustainable with various operators talking through the different activities their businesses were working on in this space. The panellists recognised that ESG initiatives were important not only to customers and shareholders, but also in attracting new talent to the sector.

With a simultaneous programme of short power presentations in the side rooms touching on many legal and regulatory points of interest, delegates had the opportunity to learn lessons from real life recent examples before re-joining the main room at the end of the day to hear reflections from some of the key operators in the gaming industry. The discussion covered a wide range of topics including cyber risks, the opportunities and threats of AI, regulation, industry collaboration and the value of diverse thinking.

Conclusion

Summing up at the end of the day Will Hawkley, KPMG Global Head of Leisure and Hospitality, said, “The KPMG Gibraltar eSummit has once again provided a fantastic opportunity for the industry both in Gibraltar and the wider world to take stock of the market, and the opportunities and threats it faces.

“We were delighted to have both the Chief Minister Fabian Picardo and the Hon Nigel Feetham MP join us on the day, reflecting the importance of the sector to Gibraltar’s economy. We also thank our other expert speakers for their time and reflections which are so valuable to understanding the future direction of the gaming industry.