KAHNAWAKE APPLICATION FOR WHITELISTING IN UK FAILS

18 January 2008

British Gambling Commission admits Tasmania but rejects Canadian First Nation and the Antiguans


The latest newsletter from Britain's Gambling Commission carries the news that the Canadian First Nation enclave
of Kahnawake, licencing jurisdiction and server home for hundreds of online gambling companies, will not be white
-listed for purposes of advertising in the UK.

No specific reason for the rejection is given, but the Mohawks of Kahnawake have been the target of player
criticism regarding poor communications for years, and the jurisdiction has made some controversial judgements in
its time. Antigua has similarly been accused of poor response levels to complaints from players, and has been
centre stage for some time in the industry due to its public WTO dispute with the United States.

Reporting the rejection, the newsletter merely advises: "After careful assessment of their representations against
the published criteria, the Secretary of State has also decided not to whitelist Kahnawáke (Canadian reservation)
or Antigua."

The good news was for the Tasmanian government, as the UK government's Department of Culture, Media and Sport
confirmed that Tasmania will be added to the ‘Whitelist’ of countries or jurisdictions allowed to advertise remote
gambling in the UK as if it were an EEA state.

This decision follows a reconsideration of Tasmania’s application after the introduction of amending legislation
to their tax regime. A full assessment of their application was made to ensure it met the Government’s
‘Whitelisting’ criteria published in January 2007.

Regulations have been laid in Parliament and will come into effect in 21 days time on 31 January 2008. After this
date, gambling operators licensed in Tasmania will be able to advertise their remote gambling services in the
United Kingdom.

The States of Alderney and the Isle of Man are the only two other jurisdictions to have previously been added to
the whitelist. An announcement was made on this decision in August 2007.

The effect of these decisions is that only gambling operators licensed in EEA countries (including Gibraltar and
Malta), Alderney, Isle of Man or Tasmania can lawfully advertise gambling in the UK.

The decision will undoubtedly cause online companies licenced by Antigua and Kahnwake to reconsider their position
and perhaps join the trend which emerged last year whereby companies switched licencing to EEA jurisdictions.

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