Anjouan Gambling Regulator rallies back as black market intensifies

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Whether fuelled by the elevated betting engagement of the World Cup or global pressure, the Anjouan gambling regulator has tried to set things straight.

Anjouan Gaming made an abrupt intervention via a statement shared on Linkedin yesterday. The regulator has asserted that its licences are not presented as a means to operate globally. 

The Anjouan licensing framework is much maligned amongst more mature iGaming markets. The fact that many regulated markets are grappling with the threat of black market operators has led to Anjouan facing scrutiny.

It feels as if the tensions between the regulated industry and the forces fuelling unlicensed operators in their jurisdiction are at a tinderbox, with a myriad of other players being engulfed in the hostility. 

Not least, social media platforms that are awash with aggressive marketing content from unlicensed operators. In the conversations around unlicensed gaming, two jurisdictions are repeatedly mentioned – Curacao and Anjouan.

In retaliation to the public backlash around the black market, Anjouan’s LinkedIn statement attempted to provide clarity on its licence and its utilisation. 

It stated: “We welcome informed industry discussion. Licensing, regulatory standards, market access, player protection, AML, technical compliance, and responsible gaming obligations should be discussed seriously.

“For clarity, Anjouan Internet Gaming Licences are issued under the applicable framework of the Autonomous Island of Anjouan. The licensing programme is administered through the Anjouan Gaming structure, under the authority of the relevant Anjouan public bodies responsible for the offshore financial and gaming framework.

“An Anjouan Internet Gaming Licence is not, and has never been presented as, a universal authorisation to operate in every country in the world. No licensing authority can exempt an operator from local law in jurisdictions where local authorization is required.”

Shifting responsibility

Anjouan Gaming’s statement shifts the burden of responsibility away from the regulatory framework and towards operators using the regulator’s licence to target markets beyond its jurisdiction. 

The response has come amidst a fierce backdrop of criticism over licensing frameworks in regions like Anjouan, claiming that they are enabling the unlicensed sector. 

“Constructive criticism and comparative analysis between licensing jurisdictions are welcome,” the statement continued.

“Different operators will have different regulatory needs depending on their business model, markets, risk profile, payment relationships, suppliers, and long-term strategy.

“What is not helpful to the industry is commentary that conflates offshore licensing with local market authorization, treats operator misconduct as proof against an entire framework, or makes broad allegations without reference to the applicable legal framework, licence conditions, public register, verification tools, or compliance obligations.”

It is a statement that will raise eyebrows in the debate around the black market. It comes at a time when the regulated industry in countries like the UK are preparing a fightback against offshore, unlicensed and illegal operations. 

There have been specific fears raised that a shifting landscape within the UK, accelerated by significant tax hikes and regulatory changes, will only serve to elevate the black market’s opportunity to exploit the local market.

As intensified enforcement and a more rigorous approach to compliance shrink mid-tier operators’ ability  to attract players and gain exposure, the door subsequently opens for a dangerous and opportunistic black market.

It has prompted heightened fear in the UK market over potential growth of unlicensed operators in the sector. 

Blowback has also come from the Dutch market, where the Kansspelautoriteit (KSA) has taken aim at TikTok and Meta’s platforms, over their acceptance of illegal gambling ads.

The Dutch gambling regulator has lamented that ‘not nearly enough’ is being done to combat the surge of illicit advertising on the platforms.

Speaking at the Gaming in Holland, KSA Director of Licensing and Supervision, Ella Seijsener, event from Amsterdam, she stated: “We intend to break down the infrastructure around illegal providers, make it impossible for them to operate in our Dutch markets.

“We are open about the fact that fines are almost impossible to collect and thus are almost never paid. What is more effective is our comprehensive approach by working with hosting providers, banks, payment service providers and marketing companies.”

Anjouan Gaming’s statement is seemingly an effort to step back from the debate around the enabling of the black market. The regulator has been unable to avoid criticism across various jurisdictions due to the activities of many of its licence holders, however, and this criticism is not likely to die down anytime soon.

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