Jersey Gambling Commission Annual Report and Accounts 2021

2021

Jersey Gambling Commission Annual Report and Accounts

R.118/2022

CONTENTS

Accountability and Governance Report

Chairman's Statement ................................................................................................................................... 2 Chief Executive's Statement .......................................................................................................................... 3 The Board and its Responsibilities................................................................................................................. 4 The Executive ................................................................................................................................................. 8

Performance Report

The Role of the Commission.....9 Executive Overview 2021......9 Licensing and Regulatory Strategy...............................................................................................................13 Regulatory Risk .............................................................................................................................................13 Operational Review 2021 ..............................................................................................................................14 Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT)..........................................19 Social Responsibility......................................................................................................................................19 Self-Exclusion ................................................................................................................................................21

Financial Statements

Financial Commentary..................................................................................................................................23 Audited Financial Statements .......................................................................................................................24

Note: Please refer to separate contents page for Audited Financial Statements from page 25 onwards

Chairman's Statement

This is the eleventh Annual Report of the Jersey Gambling Commission and the first that has addressed the recommendations made by the Comptroller and Auditor-General in her 2021 Annual Reporting By Public Bodies, Good Practice Guide.

The Board of the Commission recognises the aspiration "to improve the content and accessibility" of annual reports, but thinks it appropriate to adopt an evolutionary approach and so broadly follows the format of previous years, albeit with what we hope will be noted as clear advances in line with the Auditor-General's recommendations to public bodies generally. With a clear acknowledgement of the need for transparency, one area where the Board has decided it will not presently follow the Comptroller and Auditor-General's recommendations is in respect of a remuneration and staff report. It is important to note that the Commission receives no public funding whatsoever and its staff complement is small and for this reason, remuneration is aggregated for reporting purposes. The Board will keep this matter under review, however, and if a compelling justification becomes apparent in the future it will reconsider this for future reports.

Much of what needs to be said regarding the work of the Commission can be read in the performance section of the report, but I wish to highlight a number of areas. With depressing regularity I look back on the previous year, and find little improvement in the delivery of specialist problem gambling treatment in the Island. As a regulator, the Commission cannot deliver such services itself, yet we continue to raise the profile of this important issue. During 2021, the Commission, with some sponsorship by law firm Baker and Partners, brought Paul Merson, the pundit, former Arsenal and England footballer and self-confessed gambling addict to speak in Jersey. Repeated requests for help made by us to a Jersey public authority well-placed to assist received no reply. Paul Merson delivered a compelling seminar on his own battle with addiction and offered examples of coping mechanisms and online support groups that can help. One individual in the audience bravely chose to speak publicly about their own experience with their deep-seated gambling addiction and commented on the need for much greater help to be made available in Jersey. I applaud that individual for having given an articulate description of what addiction means at the individual, human, level. Starkly, we are discussing a condition which is known to cost lives, but which receives insufficient attention. We continue to learn that addictions are not a simple matter of personal choice, but a response to a complex web of personal experiences. Gambling addiction needs to be further de-stigmatised so that all those affected by it feel able to step forward and get help. This will require the provision of a treatment service in Jersey. A service which does not currently exist, but which could do so if the funding initiatives of the Commission were to be underwritten – not paid – by government. The provision of this sort of guarantee by government and the unlikely need for eventual contribution have been researched and costed by the Commission, and early approaches to government are planned.

One area which is improving, however, is the relationship between the Commission and government. The Commission is involved in the common task of preventing crime, but specifically in the co-ordination of work in preparation for the next review by Moneyval. I am extremely pleased to see this. The gambling industry, while small in terms of its economic benefit compared to financial services, must nevertheless ensure that it can demonstrably prove that it is resilient and is not a backdoor for money laundering or other forms of crime. This relationship would be further strengthened if the draft Memorandum of Understanding, dormant now for many years, could finally be signed.

I take this opportunity to thank current Deputies Lyndon Farnham and Kirsten Morel for the accessibility and good counsel which they have long made available to the Commission in acquitting its statutory – and challenging – brief.

I commend this report to the Minister and respectfully request that it be forwarded for submission to the States.

Advocate Cyril Whelan Chairman

Chief Executive's Statement

This past year has proven to be an extremely challenging one. The team not only continued to work remotely, dealing with routine administration and regulatory issues, but also found itself confronted with the sequence of events that led to the suspension and subsequent revocation of the remote operators licence issued to BetIndex. Much has already been said about the demise of the company and the impact that it had upon its customers. That is clearly regrettable, but I restrict my comments here to the process that was followed because it evidently demonstrated the robustness of the Commission's published Decision Making Process. From the point at which the licence was suspended on 11th March 2021, it took just under seven months to finalise the decision to revoke. This process involved the following key stages:

• The investigation and gathering of papers and other data;

• The sharing of those materials with the licensee and their legal and other advisors for verification and additions, if any;

• Review by the Executive of the Commission leading to a decision to refer the papers to the Board;

• First meeting of the Board to form a provisional view of what the outcome should be;

• Second meeting of the Board to hear representations from its officers and from the licensee;

• Board decision.

Moving forward, it would be helpful if the Commission's powers in respect of enforcement could be enhanced. An amendment to allow the Commission to make public statements in respect of regulatory action would be an asset, both in terms of the transparency that it would bring to operational delivery and to serve as a reminder of the standards required of licensees. Similarly, the limit of £5,000 per transgression that can be applied by the Commission in cases where it is justified and lawful to apply a civil financial penalty should be increased. The Commission was the first independent body in Jersey to be granted financial penalties and there was an understandable caution regarding their use. Times, however, have now changed and in light of the penalties now available to other Jersey regulators, this limit should be enhanced or indeed completely removed.

The continued impact of Covid was mixed. Travel remained curtailed and at least financially, this had a favourable impact, contributing to a positive year-end balance of £82,557. From a personal perspective, I accepted the challenge of taking on the presidency of the International Association of Gaming Regulators (IAGR), but could only watch the conference and address it from my office in St Helier given that the United States government had not yet relaxed their rules on business travel. Developing the role and scope of IAGR remains one of the core objectives of my two-year term as President, as it without doubt provides opportunities to learn and engage with a incredibly valuable network of overseas regulators whose industries and regulatory frameworks can be very different from that which erxists here in Jersey.

Progress in developing a locally based problem gambling service remained stalled, but our overseas network of advisors and service providers, particularly Gordon Moody's offering at gamblingtherapy.org/je continued to engage, offering help and advice to Islanders. As the Chair has noted, the presentation and personal delivery by Paul Merson was a powerful and engaging insight into the impact that uncontrolled gambling can have, and this has led to at least one direct referral to Gordon Moody for inhouse treatment, for which I'm extremely grateful. Spreading the word, building confidence and de-stigmatising the impact of gambling continue as core themes of the Commission's Social Responsibility programme. To that end we continued our outreach programme of engagement through radio and print advertising.

Commercially, the land-based bookmaking sector remains under pressure, but overall the level of commercial licences remained steady after the drop reported in 2019/20. The charitable sector, however, has possibly been harder hit. Numbers of registrations for charitable gambling were down again (approximately 15%), possibly reflecting the increased competition for good causes funding.

Dr Jason Lane Chief Executive

The Board and its Reponsibilities

Article 2 of Schedule 1 of the Gambling Commission (Jersey) Law 2010 governs the Constitution and operation of Commission. It mandates the requirement of the Board to disclose any direct or indirect conflict of interest in the operations of the Commission and that thereafter any such conflicted Commissioner should take no further part in the proceedings in respect of that conflict. The declaration of interests is consequently a standing item on the agenda of Board meetings and no conflicts were declared during the period under review.

The Law also gives a power (but makes no requirement) for the Commission to have committees. The utilisation of specialist committees within large Boards is quite normal, but with a Board of only three, the separation of thought and expertise is at best theoretical. For this reason the Board elected at the start of its term to consider all matters together. For this reason, responsibility for the strategic direction of the Commission lies with the Board, with the operational delivery being in the hands of the executive.

Membership of the Board of Commissioners is by Ministerial appointment from a list of applicants compiled by the sitting Chair. The position of Chair is by open competition under the auspices of the Jersey Appointments Commission and with representatives of both the Minister and the Commission. The last competition was in July 2015 with the appointments of Advocate Whelan and Ms Sebire made in November 2015 for four years, being then extended for a further four years. Advocate Swan was appointed from 4th January 2016 for four years and also extended by Ministerial appointment for a further four years. The Law proscribes Commissioners from serving more than 10 years in total.

CYRIL WHELAN, CHAIRMAN

Called to the English bar in 1979 and to the Jersey bar in 1982, Advocate Whelan spent 28 years as senior legal adviser in the Law Officers' Department in Jersey. He was appointed to the office of Crown Advocate immediately upon the creation of that office in 1987 and remains the Island's longest serving Crown Advocate. He has served from time to time as Jersey's acting Attorney General and has also acted on behalf of successive Attorneys General in the implementation of major regulatory and mutual assistance legislation in Jersey.

Advocate Whelan retired from the Law Officers' Department in 2007 and is currently a Senior Consultant at the local law firm Baker and Partners. Among other positions of public service, he sits as an employment judge ( Deputy Chair) of the Jersey Employment and Discrimination Tribunal, sits as one of Jersey's Coroners and chairs

the Appeals Panel in respect of the fitness of medical professionals under the relevant legislation.He serves on the conditional early release panel in respect of those serving custodial terms in the Jersey prison system. He continues to serve as a director of the Jersey Opera House.

Advocate Whelan completed the ten-year maximum tenure as a Commissioner of the Jersey Financial Services Commission in June 2020. A Commissioner of the Jersey Gambling Commission since November 2015, he was appointed Chairman by the States from 1st October 2016, re-appointed in November 2019 and then given a further extension until 2nd November 2024.

DEBBIE SEBIRE, COMMISSIONER

Appointed to the Commission in November 2015 and re-appointed in 2019, Ms Sebire additionally sits on the Board of Highvern Trustees Limited as a non-executive director.

From 2004 to 2012 Ms Sebire was the Director of Trust Company Business for the Jersey Financial Services Commission. Prior to that from 1991 to 2004 Ms Sebire was a Director of Citigroup's Jersey Trust Company, responsible at various times for running the Jersey Trust Company and a Mutual Fund Unit. Ms Sebire is an Associate of the Chartered Institute of Bankers.

MATTHEW SWAN, COMMISSIONER

Appointed to the Commission in January 2016 and re-appointed in 2019, Advocate Swan was, during 2021, also a member of the Jersey Police Complaints Authority and an advisor for Citizens Advice Jersey.

He was a partner at Ogier between 2001 and 2015, heading their European banking and finance group and acting as the managing partner of the Jersey law firm. He has been qualified as a lawyer in England and Wales, Jersey and Cayman. He has been listed as a leading individual for banking and finance in Chambers and Legal 500.

Advocate Swan resigned as a Commissioner in April 2022 in order to take up the post of Viscount of the Royal Court.

Meetings of the Commission

Meetings of the Board are of three main types. The first are standard meetings which are held quarterly and these touch upon all aspects of the Commission's functions, but particularly include a financial review of actual income and expenditure against budget. The Commission's management accounts are compiled by their shadow Finance Director, a service supplied by local accountancy firm Purpose. These management accounts are based upon the Commission's operational budget which is prepared by Purpose after consultation with the Chief Executive. It is worth noting that the Commission receives no public funding whatsoever and must therefore ensure that it is fiscally responsible and makes best use of the fees which it charges to its licensees, permit holders and other stakeholders.

The Board will also be presented with an operational report during its quarterly meetings. These are prepared by the Executive and raise matters which are deemed notable and reportable. The Board will also meet to consider licence applications across its various commercial sectors. These are assessed on the basis of the application received and the Executive's report into the firm or individual concerned.

Finally the Board will also meet on an ad hoc basis for particular or pressing matters that cannot wait until the next quarterly meeting and those matters subject to the published Decision Making Process.

In 2021, the Commissioners met on eleven occasions. During the height of the pandemic, these meetings were conducted using Zoom, or telephone dial in.

Board packs comprising agendas and reports are distributed to the Commissioners a week in advance of each meeting, and categorised accordingly:

• Confirmation of the Minutes

• Matters arising from previous meeting

• Report on Financial Matters

• Matters for Decision

• Matters to Note

• Any other business & late items

The Chair governs the meeting and agrees the agenda proposed by the CEO. The substance of the agenda ranges over issues arising locally and internationally and deals with updates related to the various licenses and permissions granted by the Commission.

The Board meetings address governance matters ensuring the Commissioners are satisfied that the Commission is being managed well and that financial stewardship is competently and transparently controlled.

AD HOC MEETINGS

Licence reviews

15th February 2021 [The meeting was conducted  11th March 2021 [The meeting was conducted using using Zoom.]  Zoom.]

Present –  Present –

Advocate C. Whelan, Chairman  Advocate C. Whelan, Chairman

Advocate Matthew Swan, Commissioner  Advocate Matthew Swan, Commissioner

For the executive:  For the executive:

Dr. J. Lane, Chief Executive  Dr. J. Lane, Chief Executive

Mr. D. Evans, Deputy Chief Executive  Mr. D. Evans, Deputy Chief Executive Apologies: Ms. D. Sebire, Commissioner  Executive Officer

Apologies: Ms. D. Sebire, Commissioner

27th August 2021  28th September 2021 [The meeting was conducted Present –  using Zoom.]

Advocate C. Whelan, Chairman  Present –

Ms. D. Sebire, Deputy Chair and Commissioner  Advocate C. Whelan, Chairman

Advocate Matthew Swan, Commissioner  Advocate Matthew Swan, Commissioner Meeting was held without the Executive being present  Ms. D. Sebire, Commissioner

as per Decision-making Process  For the executive:

Mr. D. Evans, Deputy Chief Executive  Apologies: Dr. J. Lane, Chief Executive

Social responsibility: Paul Merson visit and public talk, 27th October 2021

Advocate C. Whelan, Chairman

Ms. D. Sebire, Deputy Chair and Commissioner Advocate Matthew Swan, Commissioner

For the executive:

Mr. D. Evans, Deputy Chief Executive Apologies: Dr. Jason Lane

Notice of Intent Hearing, 4th October 2021 Presiding –

Advocate C. Whelan, Chairman

Ms. D. Sebire, Deputy Chair and Commissioner Advocate Matthew Swan, Commissioner

For the executive:

Mr. D. Evans, Deputy Chief Executive Apologies: Dr. Jason Lane

Licence hearing, consideration and verdict, 7th October 2021  

Advocate C. Whelan, Chairman

Ms. D. Sebire, Deputy Chair and Commissioner Advocate Matthew Swan, Commissioner Meeting was held without the Executive being present.

Quarterly Board Meetings

16th March 2021

Advocate C. Whelan, Chairman

Ms. D. Sebire, Deputy Chair and Commissioner Advocate Matthew Swan, Commissioner

For the executive:

Dr. J. Lane, Chief Executive

Mr. D. Evans, Deputy Chief Executive Financial Director - Purpose (for a time)

2nd July 2021

Present –

Advocate C. Whelan, Chairman attending via telephone.

Ms. D. Sebire, Deputy Chair and Commissioner Advocate Matthew Swan, Commissioner

For the executive:

Dr. J. Lane, Chief Executive

Mr. D. Evans, Deputy Chief Executive Financial Director - Purpose (for a time) Partner - Alex Picot (for a time)

7th October 2021   7th December 2021  

Present –  Present –

Advocate C. Whelan, Chairman  Advocate C. Whelan, Chairman

Ms. D. Sebire, Deputy Chair and Commissioner  Ms. D. Sebire, Deputy Chair and Commissioner Advocate Matthew Swan, Commissioner  Advocate Matthew Swan, Commissioner

For the executive:  For the executive:

Mr. D. Evans, Deputy Chief Executive   Dr. J. Lane, Chief Executive

Regulatory and Compliance Officer  Mr. D. Evans, Deputy Chief Executive Financial Director - Purpose (for a time)  Regulatory and Compliance Officer

Apologies for absence: Dr. J. Lane, Chief Executive  Financial Director - Purpose (for a time)

The Board has always  been  quorate  and  in  addition  to  the  formal  meetings  noted above,  each  individual Commissioner has been available to discuss specific matters with the Executive whenever needed. Given the impact and disruption caused by Covid, the Board elected not to undertake a formal performance review during 2021, choosing instead to receive verbal feedback from the Chair and Chief Executive.

The Executive

The Executive undertake the operational delivery of the work of the Commission under the scrutiny and oversight of the Board. It is led by the Chief Executive, Dr Jason Lane and the Deputy Chief Executive, David Evans, both of whom sit as ex-officio Board Members. They oversee a small team of three, including an Executive Officer who has oversight of the financial and administrative functions of the Commission, as well as acting as a case officer with particular oversight of licensees financial reporting. The Executive Officer is in turn supported by two Regulation and Compliance Officers who undertake due diligence, monitor reporting and inspect for compliance.

Jason has been Chief Executive of the Jersey Gambling Commission since the organisation was created in 2010, having previously worked as a policy advisor on regulatory issues for the Government of Jersey. A former Chairman of the Gaming Rregulators European Forum (2014-16), he was appointed a Trustee of the International Association of Gaming Regulators in 2018 and elected Vice President in 2020. Jason began his two year term as President of IAGR in October 2021.

A member of the International Masters of Gaming Law, Jason was also appointed by the Minister for Home Affairs as an inaugral member of the Jersey Police Authority in 2014, becoming Chair in 2017.

JASON LANE CHIEF EXECUTIVE

David has worked for the UK Financial Services Authority and Pensions Regulator. In 2001 he joined the Gaming Board for Great Britain (latterly the Gambling Commission) as Inspector for Intelligence and Operations, also serving as the Board's Money Laundering Reporting Officer.

In 2006 he joined the Jersey Civil Service and transferred to the Jersey Gambling Commission in 2010. As Deputy Chief Executive, David has responsibility for probity investigations on applicants for licensing and the production of guidance and Codes of Practice.

DAVID EVANS

DEPUTY CHIEF EXECUTIVE

The Role of the Commission

Part 2, Article 3 of the Gambling Commission (Jersey) Law (2010) sets out the general functions and powers of the Commission as the general supervision of gambling', including in particular –

1. supervision of providers of gambling services, and
2. investigation of whether any person is complying with, contravening, or committing an offence under an enactment relating to gambling.

The Commission must also directly apply its Guiding principles' in the performance of all of its functions to ensure that any gambling services provided –

1. should be conducted responsibly and with safeguards necessary to protect children and vulnerable people;
2. should be regulated in accordance with generally accepted international standards to prevent fraud andmoney laundering, and should notbe permitted to be a source of crime; and
3. should be verifiably fair to consumers of those services.

In undertaking these duties, the Commission applies the powers and responsibilities entrusted to it by the Gambling (Jersey) Law (2012).

Executive Overview 2021:

Staff

5

Gender Balance M/F 3:2

Commissioners 3

Gender Balance M/F 2:1

Income 2021   (2020) Commercial Fees £679,465   £615,536 3rd sector Fees £2,840 £2,470

Fees & Salaries 2021   (2020) Staff £340,384   £322,761 Commissioners £92,500 £80,625

Formal use of the Decision-Making Process Leading to Licence revocation: 1

Types of Permitted Commercial Gambling

Horse Racing   Internet Gambling   Sports Betting Crown and Anchor Types of Permitted Charitable Gambling

Cinema Racing Raffles / Lotteries   Bingo Crown and Anchor Levels of Charitable Gambling

Charitable Registrations

100 80 60 40 20 0

2014 2015 2016 2017 2018 2019 2020 2021

Year

Numbers of Commercial Licences (by Sector – over time)

LBOs Self-Exclusion Data from 2015-2021 (Note Self-Exclusion Section of the Report)

Licensing and Regulatory Strategy

The Commission is not a promoter of Jersey, or the gambling industry and takes a neutral approach to the sector. It has a clear duty in law to regulate legitimate businesses and those who wish to make use of gambling for charitable, sporting, social or educational purposes. Given that there is no proactive equivalent to Jersey Finance championing the sector, it is, and in all likelihood will remain, small.

The Commission licences and regulates four areas:

• Terrestrial Commercial Gambling;

• Remote Commercial Gambling;

• Ancillary (Gambling) Services;

• Charitable, Club and Social Gambling.

Articles 8 and 9: Gambling (Jersey) Law 2012

The Law is unambiguous; Article 8 states that it is an offence to provide a commercial gambling service from Jersey without a licence and the offence carries a maximum of 5 years imprisonment and an unlimited fine. Commercial gambling is where a gambling service is provided by at least one person by way of business, to at least one person who gambles as a customer (not by way of business). This is distinguished from an ancillary service, known as business to business or B2B where a gambling service is provided by way of business, but only to others who are also acting by way of a commercial gambling business.

Article 9 requires the Commission to consult on and publish its policies on what types of commercial gambling will be licensed, and what standard conditions will normally be imposed on licences for different types of commercial gambling. These statement and policy requirements also extend to gambling promotions of charities and societies with permissions defined under the Gambling (Charitable and Membership Gambling Services) (Jersey) Regulations 2012 and also those  B2B  arrangements  outlined under  the  Gambling  (Ancillary  Services and  Miscellaneous Provisions) (Jersey) Regulations 2012.

Regulatory Risk

Given that Risk is inherent in everything that an organisation does, the Commission applies a risk-based approach to regulation, enabling it to prioritise its efforts and focus upon those sectors of the industry that have the greatest impact upon the Island. For that reason, the Commission considers the regulation of the commercial sector to be a higher priority than charitable and society gambling. The guiding principles governing our regulation are stated under Article 4 of the Commission Law. These principles state that we must ensure gambling services:

• should be conducted responsibly and with safeguards necessary to protect children and vulnerable people;

• should be regulated in accordance with generally accepted international standards to prevent fraud and money laundering, and should not be permitted to be a source of crime; and

• should be verifiably fair to consumers of those services.

Applying these principles to practice, a sound working relationship with the regulated sector is of the utmost importance. Self-reporting is a product of this relationship and bolsters trust between the regulator and regulated. While regular inspections and spot-checks are undertaken to verify compliance, it is the duty of a licensee to draw the attention of the Commission to an issue and take steps to resolve it. While a regulatory sanction may be appropriate depending upon the nature and scale of the breach, non-reporting immediately threatens a licence because of its clear breach of that trust previously mentioned. While self-reporting remains an appropriate means of lessening regulatory sanction and increasing compliance, it is vital that all licensees (and this extends to the charitable sector) are confident they can approach the Commission knowing they will be treated fairly.

Key Risks

The Commission operates a risk register to record and consider the possible risks that could have a substantial and unfavourable effect on the Commission. The register is organised around the following key themes:

Risk theme: Staff

As previously stated, the Commission is not a big organsiation, comprised of three Commissioners and five executives. The risks concomitant with sickness most notably the COVID-19 pandemic, highlighted the vulnerabilities a small work force faced. The ability for remote working was enhanced by the purchase of additional hardware for each member of staff and with our IT support enabling software to ensure secure connection and access to files. If the office needed to be closed, as evidenced during the pandemic, phone rerouting was implemented to ensure all calls were answered.

Risk theme: Finance

The Commission is not a publicly funded body, all income is derived from fees and it must manage its resources prudently. A reserve fund has been built up over a number of years to enable the Commission to mitigate any fluctuations in income, as well as meet any legal challenges.

Risk theme: Technology

The majority of remote licensees submit reporting through a portal on the Commission's website. To ensure the ongoing robustness of our systems, management is outsourced to a trusted third party technology company. A new internal case management system is planned for 2023, as its predecessor is no longer supported.

Risk theme: Reputation

The Gambling Commission (Jersey) Law makes it a specific duty of the Commission that in carrying out its functions under Article 7 (5) the Commission must in particular aim to secure the protection and enhancement of the reputation and integrity of Jersey in commercial and financial matters, as those are affected by gambling. Although a small regulator of a small industry the impact of any misconduct in the facilitation of commercial or charitable gambling would seriously impact the Island's reputation as a finance centre and erode public confidence. The Commission must also observe its duty not to create an undue burden in its oversight of all its permissions, that regulation is proportionate, and that Jersey is not over-bureaucratic and is a place to do business.

Operational Review 2021 Highlights

The Jersey Gambling Commission gears itself towards fulfilling five core aims:

1. To protect consumers, the young and the vulnerable;
2. To regulate fairly and responsibly in a manner proportionate to the sector;
3. To ensure that gambling legislation is kept up to date and fitfor purpose;
4. To advise Ministers and government on all matters relating to gambling and gambling regulation;
5. To ensure that the Commission works to support government policy and the commitment to economic diversification.

Performance Report Overview Statement by CEO

Protection of consumers, the young and the vulnerable: key action undertaken by the Commission involved the suspension, review and ultimate revocation of the remote gambling operator's licence issued to BetIndex. Revocation followed the published Decision-Making Process and was not appealed.

The Commission continued its previous engagement with the Government of Jersey in order to ensure that the dangers posed by gambling are better understood. This involved offering funding to provide training from a dedicated third-party to front-line staff in customer facing roles. Unfortunately, while there was initial positive reaction from government, no action was taken after repeated prompting and consequently no training was undertaken.

The Commission continued its dialogues with Gordon Moody (GamblingTherapy) and GamCare with the aim of ensuring that its knowledge base remains current and that prompt assistance can be offered to Jersey residents who present with specific gambling harms. Unfortunately, the provision of specific assistance within the Island remains dependent upon an increasingly constrained public health service and consequently the Commission believes that engaging with an external provider provides the best likelihood of future delivery. To that end the Commission is looking at likely funding streams required to ensure the set-up of such a service.

Regulate fairly and responsibly in a manner proportionate to the sector: the Commission does not operate a one size fits all' policy and all physical premises that offer gambling services to the Jersey public will inevitably have at least one visit by the Executive in any one year. These may range from a low-key and unannounced visit to a pub or club operating gambling machines, to a more formal review of licence conditions in a bookmaker. A Remote Gambling Operator on the other hand, will likely only have one onsite inspection during the course of its licence (which may not be in Jersey), but will be subject to annual review of its financials, systems and other reporting conditions. This level of scrutiny is not placed upon the charitable sector, save for specific examples (such as the Hospice Million Pound Draw) where the scale of the permitted gambling is such that failure would have a disproportionate impact. In all of its undertakings the Commission remains cognizant of its duty in Law (Article 3(5) of the Gambling Commission (Jersey) Law refers) to ensure that it carries out its functions in a way that does not give rise to, or maintain, unnecessary burdens. There is, therefore, a clear need for consistency in approach and ultimately we recognise that we are subject to challenge and take account of this in our decisions.

Ensure that gambling legislation is kept up to date and fit for purpose: the Commission is pleased to report that it does have a good relationship with Ministers and the civil service in terms of accessibility and contact, however, translating this into action in terms of legislative change is extremely challenging because of relative priorities of government and the recent spate of special cases presented by Brexit, Covid and Moneyval. This was anticipated, however, in the the initial drafting instructions for both the Commission Law and Gambling Law, which have both stood the test of time fairly well. Change is inevitably required, however, as a component of experience, technological developments and policy review and the Commission now has a small, but increasingly important list of amendments that would make it both more efficienct and effective. These were put to the Minister in 2021 and will be reviewed and resubmitted in 2022.

To advise Ministers and government on all matters relating to gambling and gambling regulation: as stated above, the Commission has enjoyed a positive relationship with Ministers during the term of office of (then) Senator Lyndon Farnham and Deputy Kirsten Morel . There has been engagement and support in terms of the Commission's remit around consumer protection and problem gambling, with the department facilitating meetings with other departments of government. As should be expected, there was also challenge and questioning of regulatory policy and its application by the Commission. This is welcome, as political understanding and support for the Commission's statutory duties is vital to the proper functioning of any public authority.

To ensure that the Commission works to support government policy and the commitment to economic diversification: support of government policy in terms of keeping gambling crime free and ensuring it does not bring the Island into disrepute is clear and unambiguous. The Commission has been invited to join meetings chaired by government on preventing financial crime and ensuring that levels of AML/CFT oversight are rigorously maintained. This has all been extremely positive. The Commission is less clear, however, regarding its role in economic diversification, given that it is not a promoter of the industry in any form and historically the gambling industry has not been viewed with any particular favour by successive governments. To that end, the Commission will seek clarification from the next Minister and is content to remove diversification as a core aim if appropriate.

Regulatory Review 2021

Commercial

After the serious disruption of 2020, the past year proved a significant improvement in terms of the return of professional sporting fixtures and their availability for betting. While it is too early to suggest that all sections of the industry have bounced back to the level that they were pre-pandemic, it was positive to see the Jersey Race Club back in action providing some memorable meetings in stark contrast to the 2020 washout. That said, the instability caused by Covid and the impact on travel meant that once again the amusement with prizes (fairs and events) sector could not operate, albeit Crown and Anchor licences were issued for operation at race meetings at Les Landes and for the 250th Anniversary of the Corn Riots.

The picture as of 31st December 2021 was thus one of relative stability, but only in terms of the clearly poor performance noted in 2020. The Island retained its 6 Class I Bookmakers, operating 22 shops and 83 machines, but the trend remains one of measured decline in the face of strong international growth in the online space. In terms of pub machines, category 3 Gambling Machine licences increased to 47 (31 in 2020) across 33 pubs and clubs.

Thrift Clubs have also faced significant pressures in recent years, dropping by one to 16 over the period. As per last year's report, several have reported a difficulty in keeping or finding banking facilities and anecdotal evidence points to major banking insitututions being less likely to offer this type of account as a consequence of their own competitive pressures. The most common events remain Open the Box', Football Cards and Meat Raffles, all of which are promoted in public houses.

Personal Gambling Licence Holders dropped by two to 2 and in repeat of last year, only one Promotional Prize Lottery permit was granted during the year. In relation to remote gambling services and operators, the number of permits and licences was largely consistent with the 2020 permissions: 2 Hosting Providers, 1 Gambling Software Provider and 6 platform providers. The existing Mirroring and Load Balancing Licence first granted in 2020 renewed its licence. Holders of a Remote Gambling Operators Licence remained at 5, albeit the BetIndex licence was suspended for most of the year before being revoked.

Notwithstanding the lessoning of Covid infection levels during the early part of 2021, the Commission continued with a home working regime until the announcement by the Government of Jersey's Competent Authority Ministers that most of the remaining Covid-19 restrictions would be removed and confirming the move to Stage 7 of the Reconnection Plan with effect from Thursday 26th August 2021. Based on this guidance, the Commission advised its staff that they would be permitted to return to office working from 1st September 2021 and this remained in place for the rest of the year. Naturally, the fact that two-thirds of the year had been completed by remote working reduced the ability to conduct additional licensee inspections. As has already been noted in this report, considerable attention was spent reviewing the BetIndex licence and consequently, external advisers were engaged to undertake an inspection of an additional remote operator. From September to November all physical commercial premises received an inspection or compliance visit.

By conducting proactive and often unannounced inspections, the executive ensures that licensees and permit holders are operating in accordance with the regulatory framework and their specific licence / permit conditions. The inspections also create the opportunity to develop and maintain good working relationships with staff at all levels. To that end, all LBOs can expect to receive a minimum of 1 full inspection, with a small number receiving additional ad hoc or thematic inspections. While lockdown and subsequent limited openings reduced the opportunity for physical attendance, no major issues were reported to us by the public, police or the operators themselves.

All holders of Class 1 and Class 2 Bookmakers Licences are also required to complete and return to the Commission an annual Regulatory Return which provides data of gambling operations over the course of the year. This is an invaluable record of the state of the industry and provides a measure not just of business, but more importantly the levels of self-exclusions and other social responsibility data.

Charitable and Social Gambling

100 Club Petition

In late October 2021 the Commission was petitioned by a group of charities to consider amending rules in relation to issuance of a registration number for hundred clubs and alter the permission in respect of when the sale of tickets could commence.

The term 'hundred clubs' is applied in this case to all manifestations of a promotion that generally runs 12 distinct lotteries (monthly draws), over a calendar year, with a limited number of participants (e.g. 1 to 100) and where, in some cases, a participant may own/purchase more than one ticket.

There were 30 such clubs in 2021; some had the off-year arrangements such as draws from March to the following February, which strictly brooked the rules for registrations, as permissions granted for a year commencing January and ending in December. The reason for these split year arrangements is principally down to competition with other good causes selling tickets for these clubs combined with post-Christmas caution about spending in the new year. It is also a fact that promoters of one club usually support other kindred charities by buying their 100 Club tickets, and with a relatively small pool of purchasers, charities seek to spread out these promotions.

The Commission took a decision not to issue registrations until the end of November 2021, as it needed to prioritise other work due to low staffing levels. This, combined with a moratorium on sales until January, powered the petition for shift in policy.

The Commission was sympathetic to the petitioner's reasoning and agreed to process 100 club applications - or at best issue a reference number to the applicant - if:

• The promotion has not altered in any material way to the 100 club' of the previous year if the promoter was the same and the formulae remained unchanged e.g. no nuanced adaptations such as bolt on side draws. That participants were bound to change from time to time, was accepted.

• All  applications  relate  to  monthly  draws  commencing  January  concluding  December.  The Commission was not prepared to process a draw for 2022 that also ran into 2023. To do so would interfere with the criteria for determining what constitutes a Permit or requires a Registration as both classifications catch up various promotions and their values over a calendar year.

• The application must be complete and received by the Commission in the month of September, preferably by the middle of that month.

Ticket sales for 100 Clubs

Technically ticket sales should not commence until the year of approval for the Registration or Permit. The petitioners, however, posed an elegant argument that the gambling event or in this case 100 Clubs, were still contained within the year of the approval's issue. The Commission was happy to accept this as a practical resolution, and amended the published advice accordingly, permitting sales within the year preceding the actual draws, while limiting this ticket 'pre-sale' permission to the last quarter of the year and then not in advance of receiving any notional approvals afforded by Permit or Registration reference numbers.

Ticket Ownership

During the examination of the terms and conditions for lotteries, it became apparent tickets were bought as gifts for third parties. The Commission has long insisted the promoter must know who has entered their lottery and that tickets are not transferable. The scenario is a form of vicarious gambling and open to all manner of risks, because to some extent the promoter has lost some control over the lottery. The Commission does accept the practice was well intentioned, but a person must hold a ticket in their own name; if they have elected to give any prize winnings to someone else, then the prize comes first to the winning ticket owner who can then dispose of it how they see fit.

Online ticket sales - consultation

In October 2021 the Commission issued a consultation proposing to amend the Policy Statement for the Conduct and Regulation of Social and Charitable Gambling to allow online lottery ticket sales and to introduce a fee for amending Social and Charitable Permits. The consultation was directed in particular to charities, societies and clubs

that had experience of holding a Registration and Permit issued by the Commission.

The Covid-19 Pandemic lockdowns meant most of the charities had to suspend their fundraising events, such as lotteries and therefore experienced a loss of income. With wide access to the internet and new computer software, more activities moved online and remote purchase has become an option, and the provision of lottery tickets from commercial operators is no exception to this cultural shift.

At the time of the launch of the consultation, the Covid-19 pandemic had endured for a year and a half. Charities had to devise different ways of running their fundraising events with the least amount of contact between people in order to prevent the spread of the disease. As fundraising through lotteries is a major source of income, the best option during times of social distancing was to sell tickets through an online platform. However, the Policy statement only allowed ticket sales to take place in person, primarily as the most certain means of checking that the ticket purchaser was not under the age of 18. This was out of step with the times and the Commission sought to adapt its policies and codes to reflect the reality of online sales.

Even as the restrictions introduced to deal the pandemic eased, many charities still wanted the ability to sell lottery tickets online. This method of sale reaches a much wider Jersey based audience, and removes time and place restrictions e.g. a person selling tickets that can only be bought from 10am to closing in the Central Market. The provision of selling tickets online would also help charities with audit trails as record keeping is paramount to ensure a successful promotion.

The consultation received no descension, and the following proposals were adopted in November 2021:

The provision of online ticket sales for Registration status is permitted (Permits already had this ability to sell tickets).

Online lottery ticket sales can only take place if the promoter can make sure that ticket purchasers are over 18 and are Jersey residents. This can be accomplished by either:

1. Using ID verification software to check the purchaser's ID (for example YOTI); or
2. In cases where charities have smaller budget and cannot afford to pay for YOTI or similar software, then they will have to make sure that the winner collects the prize in person and shows photographic ID.
3. The draw will be conducted with transparency and witnessed by persons not conducting the draw.
4. The Commission does not allow external (UK based) companies to manage arrangements for charitable lotteries. However, companies licenced by the Jersey Gambling Commission may be used.

The proposition of an amendment fee of £25 for alterations requested by holders of a Charitable Permit was adopted, but not extended to amendments to Registrations.

Charitable Registrations and Permits

The Commission issued 8 charitable permits in 2021, likely reflecting the increasing need for some of the larger charities to recoup lost revenue during the pandemic. Interestingly, the number of Registrations declined further, with only 54 issued, down from 63 in 2020 and 82 in 2019. As is usual, several meetings were requested by the Commission with some of the charities to explain and offer advice on conducting lotteries, but this year, most if not all were in respect of wanting to offer online products.

Cooperation with overseas authorities and associations  

The Commission met virtually seven times throughout 2021 with the Gambling Commission for Great Britain to discuss and agree regulatory strategies and provide updates on mutual licensees. These meetings are now arranged on a quarterly footing.

The Commission's Memorandum of Understanding with the Kahnawake Gaming Commission was revised and updated to reflect minor changes in legislation.

The Commission continued to interact and share information and regulatory experiences with the membership of the International Association of Gaming Regulators and the Gaming Regulators European Forum. Although the latter organisation decided to postpone its conference in 2021, IAGR did meet in person for those members who could reach Boston (internal US delegates only) while the CEO attended virtually. It is worthy of note that our CEO took on the Presidency of this worldwide organisation at the completion of the conference and will serve in that capacity for a period of two years.

Ad hoc communication with the Jersey Financial Services Commission continued over 2021, primarily in respect of money laundering oversight for those operators (2) who offer casino gaming.

In  relation to fraud prevention,  the Commission  continued to participate  in  Gamshield,  an  industry group established to alert its membership to emerging threats and fraud typologies.

Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT)

The Commission remains a member of the Jersey Financial Crime Strategy Group and engages in the work necessary to ensure that it can contribute to the shared responsibility of keeping the Island and Islanders safe. The Commission is not a designated supervisory body under the Proceeds of Crime (Supervisory Bodies) (Jersey) Law 2008, and responsibility for the AML/CFT supervision of casinos therefore sits with the Jersey Financial Services Commission. That having been said, Article 16(3)(b) of the Gambling (Jersey) Law (2012) mandates that the Commission monitor and ensure that any licensee and any employee or agent of the licensee must, in conducting gambling in or from within Jersey and any related activity, comply with all anti-money laundering and counter-terrorism legislation'. To that end, although not a designated body in terms of Schedule 2 of the Proceeds of Crime (Jersey) Law (1999), nevertheless the Commission must monitor its licensees for AML/CFT compliance and does so across its regulated entities, not just casinos.

The National Risk Assessment

Work continued on a pan-Island basis in preparation for the Moneyval inspection expected in 2023. The Commission participated in preparation for Financial Crime Strategy Workshops in September 2021, providing requested feedback on positives and negatives of the existing process. It was also able to consider the National Financial Crime Policy and Strategy Co-operation and co-ordination structure as a part of this process.

Social Responsibility

The Social Responsibility Fund

The Commission requires payments from its licensees into a Social Responsibility Fund. All licensees located in the Island must pay into this dedicated Fund, especially those operators directly contracting with Jersey residents. Remote licensees may elect to fund charities and help organisations dedicated to the promotion of responsible gambling and the treatment of problem gambling in those countries more representative of their client base.

Accounting for the Social Responsibility Fund is governed by Article 10 of the Gambling Commission (Jersey) Law 2010 and these funds are kept separate from the main Commission accounts. The fund is used by way of research, education, information, prevention, treatment, counselling or other measures to support vulnerable people from addiction and other forms of harm associated with gambling. Specifically, the Fund meets the costs of the www.gamblingtherapy.org/je website as well as published material distributed to public-facing licensees as well as radio and print media.  

At the close of the year, there was £127,268 in the Fund, down from £136,011 in 2020. The Commission is now clearly spending more on the promotion of responsible gambling than it is receiving into the Fund. This is not something that the Commission is concerned about, indeed, it is a statutory duty that the Commission is proud to carry out. Such a trend, however, cannot continue as a structural deficit. While the Fund remains notionally healthy, it is not sufficient to undertake, support or deliver significant projects, such as delivery of an on-Island treatment and counselling service. The Commission must, therefore, receive external assistance if it is to deliver a sustainable treatment provision on the Island moving forward. As indicated above, the Commission will continue to press for engagement on a partnership basis with public sector agencies and interested third sector bodies to identify ways in which the Fund can effectively be applied to achieve the most practical outcomes.

Social Responsibility Initiatives  

One of the key duties placed on the Commission by the Gambling Commission (Jersey) Law 2010 is to maintain a social responsibility function, namely:

1. protect children and other vulnerable persons from addiction to gambling andfromother forms of harm associated with gambling;
2. make assistance available to persons who areor may be affected by problems related to excessive gambling; and
3. otherwise avoid and reduce problems related to gambling.

Throughout 2021 the Commission sought to enhance awareness of problem gambling, the availability of support groups and build upon signposting for those wishing to self-exclude and making it easier for them to do so.

Paul Merson

In collaboration with Baker and Partners, the Commission arranged for Paul Merson to speak at the Grand Hotel. Paul Merson is an elite international footballer and television personality with the deepest first-hand knowledge of the harsh reality of gambling addiction. The event was opened by a screening of the BBC documentary Paul Merson: Football, Gambling and Me, after which Mr. Merson was interviewed by Cyril Whelan to offer practical insight, support and inspiration to the gathered audience. Two members of the audience identified as problem gamblers and one openly discussed the problems of addiction and the emotional and financial damage associated with the disease. Another audience member contacted the Commission after the presentation, seeking advice on assessing residential therapy.

Mr Merson also recommended Gamblers, Family and Friends in Recovery (GFFR) which is a virtual support network facilitated by Zoom meetings. GFFR was born out of a need to support compulsive gamblers, their families and friends affected by someone's gambling addiction and who were no longer able to attend face-to-face meetings during the Covid-19 pandemic.

GFFR's online meetings continue post-pandemic and have a global reach; meetings can are accessed by using the following link: https://gamblersinrecovery.com/

About Multi Operator Self Exclusion Scheme

The self-exclusion scheme for betting shops is now extended to Jersey. It is managed by the Multi-Operator Self Exclusion Scheme Limited. The MOSES scheme in addition to recording and notifying operators of registrants and the terms of their self-exclusion, the team also take reports of breaches by registrants and notifies the operators in question. Operators, generally, are accountable to the Commission under the terms of the licence for their management of self-exclusion. MOSES however affords a central point for self-exclusion and rather than have problem gamblers submit exclusion requests in person and to multiple operators, the scheme distributes the request and its terms to those betting shops listed on an exclusion. The MOSES scheme is funded by fees payable by each participating operator based on the number of betting shops owned.

Gamstop

Whereas MOSES deals solely with exclusion from retail bookmakers, Gamstop provides a self-exclusion service from online gambling operators. The Commission had positive discussions with Gamstop professionals over 2021, to extend the service to Jersey citizens. The scheme is limited to UK licensees because the British Gambling Commission (BGC) makes it a licence condition for online operators to sign up to the initiative. However, discussions with the BGC and Gamstop concluded that facilitating exclusions of Jersey residents from its licensees was the right thing to do. Once a person signs up to Gamstop they will receive an email confirming the registration. The email will contain information about further practical tools and support designed to help. It can take up to 24 hours for your self-exclusion to become effective. A person will then be excluded from gambling with all online gambling companies licensed in Great Britain for a period of either 6 months, 1 year or 5 years. Cancellation of the selected self-exclusion period is not possible and after this period concludes the exclusion will remain in force unless the person expressly contacts GAMSTOP to ask for its removal.

Self-Exclusion

Part of the data required from licensees is an annual return stating the numbers and changes in self-exclusions, that is, people who take the initiative to stop gambling and sign a statement with an operator noting their desire to stop gambling which the operator is contractually bound to honour.

In the terrestrial bookmaking sector 321 self-exclusions were in place across the whole Jersey estate during 2021, an increase from 206 in 2020. As an individual must self-exclude from several operators if they wish to stop gambling, inspections have confirmed duplication in these numbers, e.g. the same person across six operators – this can cause some distortion of the figures. Therefore, the self-exclusion figure noted above will represent a much smaller group of people who have elected to exclude across the estate. We know there were 95 new' self-exclusions made over 2021, with 33 returning to gambling after the self-exclusion period lapsed.

The number of unsuccessful self-exclusion breaches (self-excluded persons identified while attempting to gamble) increased to 29 in 2021, this number of incidents was 21 in 2020. There were 5 transactions recorded for self- excluded persons managing to gamble, whereas in 2020 this figure was 7. However, during periods of mandatory mask wearing other incidents may have gone undetected.

It can be noted that the recorded number of staff interactions with customers increased significantly from 796 in 2020, to 2877 in 2021. This clearly reflects a more active approach taken by LBO staff in addressing concerns to customers in relation to their gambling. However, as with self-exclusions, this number does not always reflect separate individuals and is more probably a statistic of recurring interaction with some customers. Interaction can also include a request for proof of identification which, more often than not, is a response to the Think 21 initiative, for example proof of age requests increased from 317 in 2020 to 504 in 2021 and those unable to prove age increased from 37 in 2020 to 103 in 2021. So these challenges add to the increase in interactions throughout the year. To that end, a decreasing trend in proof of age' requests must be balanced against the increasing number of interactions' which give customers an opportunity to reflect (and pause or stop) their gambling.

Gambling Therapy

Since 2013, the Commission has utilised the Social Responsibility Fund to support Gambling Therapy (GT) and actively promoted the services offered via a dedicated Jersey webpage through posters and leaflets for this service. These are available at all Licenced Betting Offices and were also distributed to Parish Hall s, Citizen's Advice and the Library. The Jersey site can be accessed via http://www.gamblingtherapy.je/ and is available in many languages. Analysis of the data shows significant use of the site and that people are accessing the data contained within its pages. One of the factors that was hard to understand in the past, however, was that notwithstanding the high numbers of visitors to the site, no-one had used the counselling service. Positively, this has now changed, but usage remains low. Regardless of levels of use, the Commission will continue to support GT and the provision of its services and request advice from health professionals as well as the Third Sector, for ways in which this help can be promoted for those Islanders in need. Ultimately, the numbers of people seeking help will always be low, but the Commission takes the view that if its funded services provide help to even one Islander then this will have made it worthwhile.

Environmental impact and Sustainability

The Commission has not previously considered the impact of its work within the wider need to contribute in a positive way towards reducing its impact on the environment. To that end, the Commission will undertake the following steps:

• undertake a sustainability audit and consider the opportunities for improving its performance

• review its technology with the aim of replacing inefficient equipment should that become necessary

• review the necessity of off-Island travel to reduce the Commission's carbon footprint

• consider the wider applicability of sustainability within regulation

• liaise with other regulators to benefit from their experience.

Financial Commentary

The core principal that the Commission has worked to since establishment has been financial independence and ensuring that the service that it provides is wholly funded by those companies and organisations that benefit from its work, rather than the public. This was one of the pillars upon which the Commission was founded and it takes this responsibility extremely seriously. That is clearly a positive, but the downside to being an independent body with no public funding, is that the importance of gambling regulation (relative to its own demands) decreases in the eyes of government as the strong personal links that existed upon establishment slowly wither away. If regulation was all that the Commission did, this might not matter, but it has also been given a statutory duty to protect the vulnerable and it is here where the level of funding available to the Commission does not match potential demand. Treatment of compulsive gambling is a specialist task, requiring dedicated professional help. The Commission cannot impose what would amount to an undue burden on its relatively small industry to fund a programme of this sort. Such an action would be counter-productive. It needs the engagement and assistance of government to do this. The competing financial pressures facing everyone are well rehearsed and the Commission realizes this, which is why it has always sought the most efficient, light-touch and low-cost model that it can. The Commission believes that it may now have found such a model, but in order to be sustainable, it cannot be funded just from the Commission's Social  Responsibilty  Fund. To  that  end the  Commission  urges  all  interested  parties, within government and the third sector, to engage and help deliver a programme of assistance that is right for Jersey.

In terms of its operating costs, payroll remains the most significant and this is true of most organisations. The difficulties of finding staff in Jersey are well known and the financial rewards offered by the finance industry only exacerbate this. The Commission must, therefore, strike a balance between resisting wage inflation against the need for professional staff who can be trained and developed in what is something of a niche area. The Commission also sets a great importance upon its links with allied regulators overseas and commits approximately 5% of its income towards travel and conferences to maintain these links and deliver the learning and engagement that comes with it. Finally, office, administration and technological costs make up the balance of the operating costs of the Commission. IT provision, particularly the specialist oversight and analysis tools required by the Commission are resource hungry and must be maintained and updated. The Commission also seeks to recover some of the costs of its inspection programme where it believes they are over and above the normal level maintained through its licence fees.

The income of the Commission, as noted above, comes from its commercial licensees, with a very modest amount generated from the charitable sector. The Commission will continue to regulate good causes at what is essentially a below-market rate as part of its contribution to the good work that these organisations do for the Island. The commercial sector remains sensitive to the longer-term impact of the pandemic and increased global competition. The modest decline in the attractiveness of in-person bookmaking (noted in the graphics on p11) will likely continue as habits and demographics change. Remote gambling, while globally strong, faces increased competitive pressures and can also expect higher levels of regulation, reductions in advertising and punitive action for failures. In terms of Jersey, this has already been seen in the revocation of the licence held by BetIndex. Thus while the outlook for the sector as a whole remains positive, the licence fee income to the Commission will decrease unless new businesses choose to establish themselves in the Island. To that end, the positive operating surplus for the year of £82,557 (2021: £75,440) cannot just be assumed to continue and the Commission is planning accordingly and will continue to act prudently to ensure future financial stability.

In terms of financial controls, the Board reviews the finances of the Commission on a quarterly basis with its management accountants, the Chief Executive and Deputy Chief Executive. Between meetings, governance is assured through a system of internal controls. These controls, as well as the actual expenditure and financial planning of the Commission is subject to independent external audit and any findings are required to be declared in this Report.

The following Accounts provide an overview of the Commission's income and expenditure for 2021 in accordance with Financial Reporting Standard 102.

In line with its policies, the Commission reviews its fees and charges annually in light of its audited accounts.

AUDITED FINANCIAL STATEMENTSOF JERSEY GAMBLING COMMISSION FOR THE YEAR ENDED

31 DECEMBER 2021

JERSEY GAMBLING COMMISSION

FOR THE YEAR ENDED 31 DECEMBER 2021

PAGE

CONTENTS

Commissioners' report  26 Independent auditor's report to the Comptroller and Auditor  28

General

Statement of comprehensive income and retained earnings  31 Statement of financial position  32 Notes to the financial statements  33

FOR THE YEAR ENDED 31ST DECEMBER 2021

COMMISSIONERS' REPORT

The Commissioners present their report and the audited financial statements of the Jersey Gambling Commission (the "Commission") for the year ended 31st December 2021.

INCORPORATION

The Commission was incorporated in Jersey under the Gambling Commission (Jersey) Law 2010.

COMMISSIONERS

The Commissioners who served during the year were as follows:

Advocate C Whelan Ms D Sebire Advocate M Swan

RESULTS

The financial statements provide an overview of the Commission's income and expenditure for 2021. The Commission is pleased to report a surplus for the year of £82,557 (2020: £75,440).

GOING CONCERN

The Commissioners have considered the impact of COVID-19 on the Commission and have revised their forecast for revenue generation for 2022.

The Commissioners have reviewed the Commission's forecasts and projections and have a reasonable expectation that the Commission has adequate resources to continue in operational existence for the foreseeable future. The Commissioners therefore continue to adopt the going concern basis in preparing the Commission's financial statements and there are no material uncertainties that lead to significant doubt upon the Commission's ability to continue as a going concern.

REGULATIONS

This report has been prepared in accordance with Section 1a of Financial Reporting Standard 102 ("FRS 102") and the requirements of the Gambling Commission (Jersey) Law 2010.

SOCIAL RESPONSIBILITY FUND

Accounting for the Social Responsibility Fund is governed by Article 10 of the Gambling Commission (Jersey) Law 2010 and these funds are kept separate from the main Commission accounts. The Fund is used by way of  research,  education,  information, prevention,  treatment,  counselling  or  other  measures  to  support vulnerable people from addiction and other forms of harm associated with gambling. Specifically the Fund meets the costs of the www.gamblingtherapy.je website as well as published material distributed to public- facing licensees. The Commission is working with stakeholders both within the States of Jersey and externally to assess evidentially other uses for the Fund.

COMMISSIONERS' RESPONSIBILITIES

The Commissioners are responsible for preparing the Commissioners' Report and the financial statements in accordance with applicable law and regulations.

The Gambling Commission (Jersey) Law 2010 requires the Commissioners to prepare financial statements for each financial year. Under that law, the Commissioners have elected to prepare the financial statements in accordance with FRS 102. The Commissioners must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Commission and of the surplus or deficit for that year.

In preparing these financial statements, the Commissioners are required to:

select suitable accounting policies and then apply them consistently;

make judgements and estimates that are reasonable and prudent; and

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on a going concern basis unless it is inappropriate to presume that the Commission will continue in business.

The Commissioners are responsible for keeping adequate accounting records that are sufficient to show and explain the Commission's transactions and disclose with reasonable accuracy at any time the financial position of the Commission and enable them to ensure that the financial statements comply with the Gambling Commission (Jersey) Law 2010. They are also responsible for safeguarding the assets of the Commission and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Each of the persons who is a Commissioner at the date of approval of this report confirm that:

so far as each Commissioner is aware, there is no relevant audit information of which the Commission's auditor is unaware; and

each Commissioner has taken all steps that they ought to have taken as a Commissioner to make themselves aware of any relevant audit information and to establish that the

Commissioner's auditor is aware of that information.

AUDITOR

The Comptroller and Auditor-General exercised her power under Article 18(4)(a) of the Gambling Commission (Jersey) Law 2010 (as amended by Article 27 of the Comptroller and Auditor General (Jersey) Law 2014), to appoint Alex Picot as auditor of the Jersey Gambling Commission from the year ending 31st December 2021.

Registered Office:  Signed on behalf of the Commission The Jersey Gambling Commission

4th Floor, Osprey House

5-7 Old Street

St Helier

JE2 3RG  Dr Jason Lane

Chief Executive Approved on   26th July 2022

1st Floor, The Le Gallais Building 6 Minden Place

St Helier, Jersey

JE2 4WQ

JERSEY GAMBLING COMMISSION

INDEPENDENT AUDITOR'S REPORT TO THE COMPTROLLER AND AUDITOR GENERAL REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS

Opinion

We have audited the financial statements of Jersey Gambling Commission (the Commission') for the year ended 31 December 2021 which comprise the statement of comprehensive income and retained earnings, the statement of financial position and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland.

In our opinion, the financial statements:

• give a true and fair view of the state of the Commission's affairs as at 31 December 2021 and of its result for the year then ended;

• have been properly prepared in accordance with United Kingdom Accounting Standards;

• have been prepared in accordance with the requirements of the Gambling Commission (Jersey) Law 2010.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Commission in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Commissioners' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Commission's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Commissioners with respect to going concern are described in the relevant sections of this report.

Other information

The Commissioners are responsible for the other information. The other information comprises the information included in the Chairman's statement, the Chief Executive's statement and other information provided, other than the financial statements and auditor's report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

1st Floor, The Le Gallais Building 6 Minden Place

St Helier, Jersey

JE2 4WQ

JERSEY GAMBLING COMMISSION

INDEPENDENT AUDITOR'S REPORT TO THE COMPTROLLER AND AUDITOR GENERAL REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS

Other information (continued)

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard. Responsibilities of Commissioners

As explained more fully in the Commissioners' responsibilities statement, the Commissioners are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Commissioners determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Commissioners are responsible for assessing the Commission's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Commissioners either intend to cease the operations of the Commission, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud:

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

During our audit we assessed the risk of material misstatement of the financial statements as a result of non- compliance with relevant laws and regulations (irregularities), including fraud. Based on our understanding of the Commission and its environment, together with discussion with senior management where appropriate, we were able to identify those laws and regulations which would have a direct effect on the financial statements as well as those which may have an effect on amounts in the financial statements, for instance through the imposition of fines or litigation. These included, but were not limited to the Gambling Commission (Jersey) Law, 2010. The risks arising from these laws and regulations were discussed amongst the audit engagement team, including consideration as to how and where fraud might occur.

1st Floor, The Le Gallais Building 6 Minden Place

St Helier, Jersey

JE2 4WQ

JERSEY GAMBLING COMMISSION

INDEPENDENT AUDITOR'S REPORT TO THE COMPTROLLER AND AUDITOR GENERAL REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS

Auditor's responsibilities for the audit of the financial statements (continued)

Based on our assessment, the Engagement Partner ensured that the audit engagement team was composed appropriately with suitable competence and capabilities in order to allow identification and recognition of non- compliance with laws and regulations. The risks identified were communicated to all engagement team members who remained alert during the course of the audit for any indication of irregularities, including fraud.

Our procedures in response to the risks identified included the following:

• Enquiry of management, including consideration of known or suspected instances of non-compliance with laws and regulation or fraud;

• Review all available minutes of meetings held by those charged with governance;

• Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

• In common with all audits carried out under the ISAs(UK), we carried out procedures in response to the threat of management override, including those considering the appropriateness of journal entries and judgements made in making accounting estimates.

There are inherent limitations in the audit procedures above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. In addition, the risk of not detecting material misstatement due to fraud is higher than detecting one resulting from error, as fraud may involve deliberate concealment by, for example forgery, collusion or intentional misrepresentations. We are not responsible for preventing non-compliance and cannot be expected to detect all non-compliance with laws and regulations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the Comptroller and Auditor General, in accordance with Article 18(4) of the Gambling Commission (Jersey) Law, 2010. Our audit work has been undertaken so that we might state to the Comptroller and Auditor General those matters we are required to state to the Comptroller and Auditor General in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Comptroller and Auditor General, the Commission and the Commissioners of the Jersey Gambling Commission as a body, for our audit work, for this report, or for the opinions we have formed.

Stephen Phillips

for and on behalf of

28th July 2022 Alex Picot Chartered Accountants

FOR THE YEAR ENDED 31 DECEMBER 2021

STATEMENT OF COMPREHENSIVE INCOME AND RETAINED EARNINGS

Social

Gambling

Notes  Responsibility  2021  2020

Operations

Fund

£ TURNOVER  4  684,190 EXPENSES

Administrative expenses  595,815 SURPLUS/(DEFICIT) ON ORDINARY ACTIVITIES  88,375

BEFORE INTEREST AND TAXATION

Interest receivable and similar income  2,925 SURPLUS/(DEFICIT) ON ORDINARY ACTIVITIES  6  91,300

BEFORE TAXATION

TAXATION  7  - SURPLUS/(DEFICIT) FOR THE FINANCIAL YEAR  91,300

AND TOTAL COMPREHENSIVE INCOME

£ £  £ 17,249  701,439  634,251

25,992  621,807  563,148 (8,743)  79,632  71,103

- 2,925  4,337

(8,743)  82,557  75,440

- -  -

(8,743)  82,557  75,440

RETAINED SURPLUS AS AT 1 JANUARY RETAINED SURPLUS AS AT 31 DECEMBER

507,720  136,011 599,020  127,268

643,731  568,291 726,288  643,731

The Commission's turnover and expenses all relate to continuing operations. There are no recognised gains or losses other than those shown above.

JERSEY GAMBLING COMMISSION AS AT 31 DECEMBER 2021

STATEMENT OF FINANCIAL POSITION

Notes   2021   2020

£ £

FIXED ASSETS

Intangible assets  8  821  4,103 Property, plant and equipment  9  3,982  7,377

4,803  11,480

CURRENT ASSETS

Trade and other receivables  10   324,476   256,649 Cash and cash equivalents   11   934,818   956,643

1,259,294  1,213,292

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade, other payables & deferred income  12  537,809  581,041  537,809  581,041

NET CURRENT ASSETS  721,485  632,251 TOTAL ASSETS LESS CURRENT LIABILITIES  726,288  643,731 NET ASSETS

726,288  643,731

ACCUMULATED RESERVES

Social Responsibility Fund  13   127,268   136,011 Income and Expenditure Account

599,020  507,720

726,288  643,731

The financial statements on pages 31 to 42 have been prepared in accordance with the Gambling Commission (Jersey) Law 2010 and Section 1a of Financial Reporting Standard 102.

The accounts were approved and authorised for issue on 26th July 2022 by the Jersey Gambling Commission and signed on its behalf by:

Dr Jason Lane Chief Executive

FOR THE YEAR ENDED 31 DECEMBER 2021

NOTES TO THE FINANCIAL STATEMENTS

1 General Information

The Jersey Gambling Commission (the "Commission") was created by the Gambling Commission (Jersey) Law 2010 and is responsible for the licensing, registration and regulation of gambling in the Island of Jersey. This law transferred all responsibilities for licensing, registration and regulation of gambling prescribed as the duty of the Minister, the former Licensing Assembly or other States bodies to this new Authority. The Commission is a body corporate and its registered office is 4th Floor, Osprey House, 5-7 Old Street, St Helier, Jersey, JE2 3RG.

2 Statement of compliance

The financial statements have been prepared in compliance with Section 1A of Financial Reporting Standard 102 (FRS 102) The Financial Reporting Standard applicable in the UK and Republic of Ireland' issued by the Financial Reporting Council and the Gambling Commission (Jersey) Law 2010.

3 Summary of significant accounting policies

The principle accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented, unless otherwise stated. The financial statements are prepared in Pounds Sterling (GBP) which is the functional and presentational currency of the Commission.

Basis of accounting

The financial statements have been prepared on the going concern basis, under the historical cost convention. The Commission has applied the small entities regime under FRS 102(1A), which allows qualifying entities certain disclosure exemptions. The Commission has taken advantage of the exemption from preparing a statement of cash flows under paragraph 7.1b.

Accounting estimates

The preparation of financial statements requires the use of certain accounting estimates. It also requires management to exercise its judgement in the process of applying accounting policies. Accounting estimates involve management's judgment of expected future benefits and obligations relating to assets and liabilities (and associated expenses and income) based on information that best reflects the conditions and circumstances that exist at the reporting date. There have been no changes to the accounting estimates from the previous financial year.

FOR THE YEAR ENDED 31 DECEMBER 2021

NOTES TO THE FINANCIAL STATEMENTS (continued)

3 Summary of significant accounting policies (continued)

Going concern

The Commission meets its day-to-day working capital requirements through its available cash reserves. After  reviewing  the  Commission's  forecasts  and projections,  the Commissioners  have a  reasonable expectation that the Commission has adequate resources to continue in operational existence for the foreseeable future. The Commissioners consider, given the financial condition of the Commission, the use of the going concern basis is appropriate for the current year and for 12 months from the date of signing these accounts.

Revenue recognition

Revenue is recognised to the extent that the Commission obtains the right to consideration in exchange for services rendered. Revenue comprises the fair value of consideration received and receivable after discounts.

Licence fees

Under the terms of the Gambling (Jersey) Law 2012 and subordinate legislation, licences granted by the Commission are valid for up to five years. Licence fees are payable on issue of the licence and at each anniversary of its issue. Licence fees are initially recorded as deferred income and released over the period of the licence as the Commissioners believe that this treatment recognises the fact that the fees cover the cost of regulation and interaction with Commission staff over the term of the licence.

Social permits and registrations

Income from these permits and registrations is recognised when the permit is issued.

Pension costs

Staff initially employed by the Government of Jersey before 3 September 2010 of which there are two are members of the Public Employees Pension Fund ("PEPF") which, whilst a final salary scheme, is not a conventional defined benefit scheme because the employer is not necessarily responsible for meeting any on-going deficit in the scheme. The assets are held separately from those of the Government of Jersey. Contribution rates are determined by an independent qualified actuary so as to spread the costs of providing benefits over the members' expected service lives.

Because the Commission is unable to readily identify its share of underlying assets and liabilities of PEPF, contributions to the scheme have been accounted for as if they are contributions to a defined contribution scheme at a rate of 16.00% (2020 15.2%).

Actuarial valuations are performed on a triennial basis; the most recently published was the PEPF Actuarial Valuation for 31 December 2018 on 8 January 2020. The main purposes of the valuations are to review the operation of the scheme, to report on its financial condition, and to confirm the adequacy of the contributions to support the scheme benefits. Copies of the latest annual accounts of the scheme, and Government of Jersey, may be obtained from the States Treasury, 19-21 Broad St, St Helier, JE2 3RR or online at:

www.gov.je/Working/WorkingForTheStates/Pensions/PublicEmployeePensionFund/Pages/PublicServi cePensionPublications.aspx

3  Summary of significant accounting policies (continued)

Expenses

Expenses are accounted for on an accruals basis.

Intangible Assets

Intangible assets are stated at cost less accumulated amortisation and accumulated impairment losses. Amortisation is calculated, using the straight-line method, to allocate the depreciable amount of the assets to their residual values over their estimated useful lives. Amortisation is charged to administrative expenses in the statement of comprehensive income and retained earnings. The assets are reviewed for impairment if the above factors indicate that the carrying amount may be impaired.

Property, plant and equipment

Property,  plant  and  equipment  are  recorded  at  historical  cost  or  deemed  cost,  less  accumulated depreciation  and  impairment  losses.  Cost  includes  the  original  purchase  price  and  costs  directly  

attributable to bringing the asset to its working condition for its intended use.

Repairs and maintenance costs are expensed as incurred.

Fully  depreciated  property,  plant and  equipment  are  retained  in  the  cost  of  property,  plant and equipment and related accumulated depreciation until they are removed from service. In the case of  disposals, assets and related depreciation are removed from the financial statements and the net amount, less proceeds from disposal, is charged or credited to the statement of profit or loss.

 Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Website costs Over an estimated useful life of 3 years

Depreciation

Depreciation is calculated on straight-line basis to allocate the depreciable amount on the assets over their estimated useful economic lives as follows:

Computer equipment  Over an estimated useful life of 3 years Fixture & fittings  Over an estimated useful life of 5 years

The Commission's policy is to review the remaining useful economic lives and residual values of property, plant and equipment on an ongoing basis and to adjust the depreciation charge to reflect the remaining estimated useful economic life and residual value.

Financial instruments

The Commission has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.

JERSEY GAMBLING COMMISSION

FOR THE YEAR ENDED 31 DECEMBER 2021

NOTES TO THE FINANCIAL STATEMENTS (continued)

3 Summary of significant accounting policies (continued)

1. Financial Assets

Basic financial assets, including trade and other receivables and cash and bank balances are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

2. Financial liabilities

Basic financial liabilities, including trade and other payables are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of t he future receipts discounted at a market rate of interest.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and other short-term highly liquid investments with original maturities of three months or less.

Provisions

Provisions are recognised when the Commission has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount of the obligation can be estimated reliably.

Contingencies

Contingent liabilities, arising as a result of past events, are disclosed when it is possible that there will be an outflow of resources but the amount cannot be reliably measured at the reporting date. Contingent liabilities are disclosed in the financial statements unless the probability of an outflow is remote.

36

Contingent assets are disclosed in the financial statements but not recognised where an inflow of economic benefits is probable.

4  Analysis of turnover by category  2021   2020

£ £

Licence fees  678,215  614,036 Social permits  1,800  1,250 Social registrations  1,040  1,220

Software designers permits  1,250  1,500 Social Responsibility income  17,249  13,950 Other income  1,885  2,295

701,439  634,251

5  Payroll costs   2021  2020

£ £

Staff salaries   340,384  322,761 Commissioners' fees  92,500  80,625 Employer pension contributions  32,261  30,373

465,145  433,759

 2021  2020 Number of permanent staff employed during the year  5  5

6  Surplus for the financial year

Surplus for the financial year is stated after charging:  2021  2020

£ £

Auditors remuneration  6,572  8,000 Depreciation  3,395  4,049 Amortisation  3,282  3,576

13,249  15,625

7  Taxation

Article 17 of the Gambling Commission (Jersey) Law 2010 provides that the income of the Commission shall not be liable to income tax under the Income Tax (Jersey) Law 1961. The Commission is registered for Goods and Services Tax (GST) under the Goods and Services Tax (Jersey) Law 2007. At the year ended 31 December 2021 the Commission was due a repayment of £1,052 (2020: £2,561).

8  Intangible Assets

Website

Costs  Total

£ £

Cost

Balance brought forward  24,383  24,383

Additions   -   -

Balance carried forward  24,383  24,383 Amortisation

Balance brought forward  20,280  20,280

Charge for the year  3,282   3,282

Balance carried forward  23,562  23,562 Net book value

Balance carried forward  821  821 Balance brought forward  4,103  4,103

9  Property Plant & Equipment

Computer

Equipment   Fixture & fittings   Total

£ £  £

Cost

Balance brought forward

43,513  1,500  45,013 Additions

- -   -  

Balance carried forward

43,513  1,500  45,013

Depreciation

Balance brought forward

36,261  1,375  37,636 Charge for the year

3,270  125  3,395 Balance carried forward

39,531  1,500  41,031

Net book value

Balance carried forward

3,982  -   3,982 Balance brought forward

7,252  125  7,377  10 Trade and other receivables

2021  2020

£ £

 Licence fees receivable

316,047  234,665  Other debtors

8,429  21,984

324,476  256,649

All debtors are receivable within one year.

11  Cash and cash equivalents

The cash includes £118,408 (2020: £129,010) relating to the Social Responsibility Fund. The use of the Social Responsibility Fund is restricted by Article 10 of the Gambling Commission (Jersey) Law 2010.

JERSEY GAMBLING COMMISSION

FOR THE YEAR ENDED 31 DECEMBER 2021

NOTES TO THE FINANCIAL STATEMENTS (continued)

12  Trade, other payables and deferred income 2021 2020

£ £

Amounts due in less than one year:

Licence fees billed in advance (deferred income)  496,982  545,543 Other creditors and accruals  40,827   35,498  

537,809  581,041

13  Social Responsibility Fund

To comply with Article 10 (1) of the Gambling Commission (Jersey) Law 2010, the Commission accounts for the Social Responsibility Fund separately from its general funds.

2021  2020

£ £

Balance brought forward  136,011  136,165 Amounts billed   17,249   13,950 Amounts used  (25,992)    (14,104)  Surplus / (Deficit)  (8,743)   (154)

Balance carried forward  127, 268  136,011  

NOTES TO THE FINANCIAL STATEMENTS (continued)

15  Related party transactions

During the year salaries paid to the Commissioners totalled £92,500 (2020: £80,625). The Commissioners did not receive any other benefits for services rendered in the current or prior year. No other transactions with related parties were undertaken such as are required to be disclosed under United Kingdom Generally Accepted Accounting Principles, including FRS 102 and the Gambling Commission (Jersey) Law 2010.

16  Leases

On the 1 November 2018, the Commission entered into a lease agreement in respect of its offices at Osprey House until 31 October 2027. The equivalent annual rent is £25,800 from 1 November 2018 to 31 October 2019 and £34,400 from 1 November 2019 to 31 October 2027. Included in the lease is a break out option on 31 October 2023, subject to notice. The Commission pays all property related expenses.

NOTES TO THE FINANCIAL STATEMENTS (continued)

The total of future minimum lease payments under non-cancellable operating leases for each of the following periods:

2021  2020

£ £

Not later than a year  34,400  34,400 Later than one year and not later than five years  28,667  63,067

63,067  97,467

17  Ultimate controlling party

The Jersey Gambling Commission is a corporate body without share capital. It is independent of the Government of Jersey and as a result there is no ultimate controlling party.

18  Events after the statement of financial position date

No events occurred after the balance sheet date which are required to be disclosed by the entity.

2021

Jersey Gambling Commission 4th Floor, Osprey House

5-7 Old Street St. Helier JE2 3RG

+44 (0) 1534 828540 Website: www.jgc.je Email: info@jgc.je