01 Jul Financial Updates 13 – 06 -16
The New Jersey Division of Gaming Enforcement has declared GVC and its officers fit and proper, concluded its preliminary investigation, terminated the Monitoring Agreement in place and confirmed GVC’s ability to operate in New Jersey under its current licenses. The decision is very significant not only for GVC but also for the wider sector, since it demonstrates that the ‘black and white’ position of (some) stringent US regulators has been softened by the realities of remote gaming. However, while this should certainly be seen as ‘good news’ for operators with .com revenue and an appetite for US state markets, it is not the same as a clean bill of health for the cross-border effects of high regulatory risk.
The US regulators, like the UK, require details of countries in which licensees operate; they also require to be notified of any enforcement action and/or change in law/regulations. Consequently, a licence in a very visible jurisdiction which considers licensees’ wider business its business, makes it much harder to hide away (or even explain away) any developing issues in the .com environment. The NJ DGE’s decision has meant that operators might not have to choose between white and grey now, but it does mean that compliance is becoming increasingly global and increasingly strict – this is still something the sector is not entirely prepared for, either in terms of operations management or cash flow resilience.