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Jersey Gambling Commission Annual Report and Accounts 2016

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2016

JerseyGamblingCommission

AnnualReportandAccounts

R.96/2017

CONTENTS

Chairman'sStatement ............................................................................................................................2 ChiefExecutive'sStatement ...................................................................................................................3 TheBoard ................................................................................................................................................4 TheExecutive ..........................................................................................................................................5 LicensingandRegulation ........................................................................................................................6 ApproachtoRegulation ..........................................................................................................................6 Anti-MoneyLaundering/CombatingtheFinancingofTerrorism ..........................................................8 SocialResponsibility ...............................................................................................................................9 FinancialCommentary ..........................................................................................................................10 AuditedFinancialStatements ..............................................................................................................11

Note:Pleaserefertoseparatecontents pageforAuditedF inancialStatementsfrompage13 onwards

Chairman'sStatement

Itismypleasuretopresentthis,thesixthAnnualReport oftheJerseyGamblingCommission andmy firstinthecapacityofChairmanoftheCommission. WiththeretirementofthefirstBoardandthe appointmentofnewCommissionersduring2015and2016,theCommission continuesitsprocessof maturedevelopment . ThelegacyoftheoriginalBoar dmembersisaCommissionthatisefficientand fitforpurposeandIwanttoplaceonrecordmyappreciationoftheir achievementinthatrespect.

IwishalsotoplaceonrecordthethanksoftheBoardtotheexecutiveofficersofthe Commission who, unde r the leadership of the Chief Executive, have provided not only the expertise but the administrativecontinuitywhichhasallowedtheCommissiontomoveforwardinthewayithas .

The gambling ind ustry remains dynamic and innovative internationally and Jer sey is fortunate to haveanumberofhighlysuccessfullocalcompaniescompetingandgrowinginthatmarket. Thereis ofcourseahealthytensionbetweentheneedsofbusinessforgrowthandreturnoninvestment, politicalobjectivessuchasrestrainingp opulationgrowth while promotingeconomicdiversi fication andtheCommission'srole inregulatingfairlyatthesametimeas maintaining effectual safeguards in crucialareaslike AML/CFT andtheprotectionof theyoungandthevulnerable.

TheCommissionh asconsequentlyfocussedonbuildingitsnetworkofrelationships,bothexternally withalliedregulators andwithbusinesses , andinternallybymeetingwith membersoftheregulated community and with representatives of various sector groups that potentia lly interact with the gambling industry. Meetings and discussions have taken place with bankers, trust company professionals,lawyers,politicians , e-gaminginterestgroupsandothersintheconsistenteffortto achievemutualunderstandingbetweentheCo mmissionasregulatorandallthosewithastakeinthe maintenanceanddevelopmentoftheindustry . TheCommissionwill,therefore,continuetobuildits network of MoUs, extend its involvement in international regulatory associations and invest in trainingandcareerdevelopmentforitsexecutive.

Lookingforward,Iintendthatthefoundat ionbuiltbytheoriginalBoard shouldbe enlargedandthat , sofarasisconsistentwithbest regulatorystandards,thenumbersoflicenseessupervisedbythe Commission shouldbe increased. Thiswillbenosmalltaskgiventhattheterrestrialbookmaking industryfaceschallenges , notablyfromthegrowthofe -gaming, andhasshrunkinrealterms,whilst whatshouldhavebeenthecounterpart developmentofe -gaming businessinJersey hasbeenslow. Inthelatterregarditistobeobservedthatunlikesomeothers,theindustryhasnotsofarhad availabletoittheengineofanofficial promotionanddevelopment function.Thislatter function is one that the Commission cannot fulfil. By statute it is a regulator and not a promoter. The Commissiondoes,though,remainkeenlyaware thatthe initiativetaken bytheStatesofJersey in modernising thelegislativeframeworkin2010and2012willnotcreateasignificant returnunlessthe products now offered by Jersey -based licensees and other business providers are brought to the attention of the markets, which near and far continue to hold reputable opportunities for local growth.

Icommendthisreport totheMinistero fEconomicDevelopment,Tourism,SportandCulture and respectfullyrequestthatitbeforwarded forsubmissiontotheStates .

AdvocateCyrilWhelan Chairman

ChiefExecutive'sStatement

AsInotedinlastyear'sreport, matchingregulatoryneedto revenueremainsthemostchallenging factor facingtheCommissiononanannualbasis. TheCommissiontakesconsiderablesatisfaction from beingabletofinanceitsoperatingcostsfromlicencefeesandwithoutanycontributionfrom thetaxpayerandinevit ablytherewillbetimeswhenexpenditureisgreaterthanannualrevenue.In 2016theCommissionsaw areduction inthesizeofthelicensedbettingestatewitharesultantloss ofrevenue,albeitthiswasoffsetbyanincreaseinlicenceswithintheremo tegamblingsector.The Commissionhasalsoinvestedinnewofficestocaterforanincreasedcapacityastheremotesector developsandexpands. The reported small deficitfortheyearthusreflectstheproactivedecisionto invest in staff and premises and ensure that the Commission has the required tools, people and proceduresinplacetoundertakeitsstatutoryduties.

After nearlyeight yearsasaBoardMember,thepastfourofwhichhavingbeenspentasVice -Chair andChairrespectively,m ytenurea tthehelmoftheGamingRegulator'sEuropean Forum (GREF) cametoanend withtheconclusionoftheannualmeetingheldinStJulien's,Malta.GREFremains animportantorganisationfortheJGC,providinga valuableresourceofinformationandexperience acrossthecontinent .TheCommissioncontinuestoworkwithintheForum's variousworkinggroups, particularlyitsAML/CFTande -gaminggroupstoensurethattheIslandreceivesthebenefitofshared knowledge,notleastinrespectofthedifferentnatio nalapproachestoapplicationofthe4 th Anti MoneyLaunderingDirectiveandfeedbackonpracticalapplicationofthesame. Thisexperienceis vitaltoensuringboththattheIsland'sAML/CFTdefencesinthesectorarefitforpurpose,butalso forbenchm arkingcontrolssothattheyarenotdisproportionatelysevererelativetothescaleofthe riskandhenceadverselyaffecttheindustry.

Intra-regulatorydiscussionsarenotconfinedtoGREF,however,astheCommissionalsodealson practicalmatterswith anumberofjurisdictionswithwhichitshareslicensees.Byfarthelargestis the United Kingdom and in April of 2016 the Commission signed an MoU with the UK Gambling Commission to provide a structure for the exchange of information in this regard. O ther internationalco -operationtakesplacethroughtheInternationalAssociationofGamingRegulators (IAGR)andthatorganisation'sworkinggroups.Hereagain,AML/CFTfeaturesprominentlyandtakes advantageofthesynergiesandsignificantcross -membershipwithGREF.

TheCommissionhasalsomadeaconsiderableeffortathome,bothtoraiseitsprofile,butmore importantly to educate and advise. There are regular meetings with the Minister and his senior officialswhichisbusinessasusual',but201 6alsosawbriefingsacrossanumberofdiverseindustry bodiessuchas JerseyFinanceLimited ,the JerseyBankersAssociation andtheJerseyAssociationof TrustCompanies.Ofparticularnotewastheworkproducedwithofficialsfromgovernment,theJFSC andtheJerseyE -GamingGrouptodeliveraflowdiagramexplainingthevariousroutestolicensing for different typ es of remote gambling companies. Presentations and meetings with the various ThirdSectorbodiesisalsoanimportantcontributionmadeby theCommissiontoassistwhatfor many is a vital form of fund -raising and the Commission is always ready to help charities to successfullynavigatetherequirementsoftheLaw.

Finally,IwishtoplaceonrecordmyappreciationoftheworkofthefirstB oardmembers:Graham White OBE,PeterCruickshankandJeremyArnold.Ourshasbeenasignificantjourneyoverthepast tenyears,withafewbumps, butmostlycharacterisedbysuccess. Theirlegacy , asnotedbythe Chairman, isaCommissionthatisfit forpurposeanddoingthejobitwascreatedfor.Iwishthemall wellastheyputtheirconsiderabletalentstowardsnewchallenges.

DrJasonLane ChiefExecutive

TheBoard

CYRILWHELAN CHAIRMAN


DEBBIESEBIRE COMMISSIONER


MATTHEWSWAN COMMISSIONER

CalledtotheEnglishbarin1979andtotheJerseybarin1982,AdvocateWhelanspent28yearsas seniorlegaladviserintheLawOfficers'DepartmentinJersey. Hewasappointedtotheofficeof Crown Advocate immediately upon the creatio n 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. AdvocateWhelanretiredfromtheLawOfficers'Departmentin2007andiscurrentlya SeniorConsultant atthelocallawfirmBakerandPartners. Amongotherpositionsofpublicservice, heactsasoneofJersey'sreliefCoroners. AdvocateWhelan became aCommissioneroftheJersey FinancialServicesCommission on 1st June2010 , a CommissioneroftheJerseyGambling Commission sinceNovember2015andwasapp ointedChairmanbytheStatesfrom1 st October2016untilthe conclusionofhisterminNovember2019.

Ms Sebire is currently Deputy Chairman of the Jersey Police Complaints Au thority and a non - executivedirectorof HighvernTrusteesLimited . From2004to2012MsSebirewastheDirector, TrustCompanyBusinessfortheJerseyFinancialServicesCommission.Followingtheintroductionof

trust company regulation, this role involv ed establishing a practical framework to supervise trust companiesinaccordancewiththenewlyintroducedLaws,OrdersandCodesofPractice.From1991 to2004MsSebireworkedasaDirectorofCitigroup'sJerseyTrustCompany,responsibleatvarious timesforrunningtheJerseyTrustCompanyandaMutualFundUnit. MsSebireisanAssociateofthe CharteredInstituteofBankersandaMemberoftheSocietyofTrustandEstatePractitioners. Ms SebirewasappointedaCommissionerinNovember2015.

AppointedtotheCommissioninJanuary2016, AdvocateSwanis also currentlyamemberofthe Jersey Police Complaints Authority, an advisor for Citizens Advice Jersey and on the board of examiners for the Jersey bar examination. He was a partner at Ogier between 2001 and 2015, headingtheirEuropeanbankingandfinancegroupandactingasthemanagingpartneroftheJersey lawfirm. HehasbeenqualifiedasalawyerinEnglandandWales,JerseyandCayman. Hehasbeen listedasaleadingindividualforbanking andfinanceinChambersandLegal500.

TheExecutive

TheCommissionExecutiverepresent s theJGCdomestically andoverseas,havingmembershipofthe InternationalAssociationofGamingRegulatorsandtheGamingRegulatorsEuropeanForum. Both IAGRandGREFareimportantbodies,providingopportunitiestoincreaseregulatoryco -operation anddevelopcommonstandar ds.

JASONLANE CHIEFEXECUTIVE


DAVIDEVANS DEPUTYCHIEFEXECUTIVE

Jasonstartedhiscareerasagamingregulatorin2001withintheJerseyCivilService. Aspartof governmentalreformsin2003gamblingbec amepartofthenewlyformedEconomicDevelopment Department and Jason took responsibility for a wider set of regulatory functions as Director of Regulatory Services. Jason left the civil service and became Chief Executive of the independent JerseyGambli ngCommissiononitsinceptionin2010. JasonhasdegreesinPolitics,International StudiesandaPhDinPolicing.He isaformer Chairmanof GREF (2014-16) anactiveparticipantinthe IAGRe -gamingworkinggroupandamemberoftheInternationalMast ersofGamingLaw. In2014 JasonwasappointedbytheMinisterforHomeAffairsasafoundingBoardMemberoftheJersey

Police Authority and became Deputy Chairman in 2015, where he has oversight of business and performance management, workforce manageme nt and succession planning within the States of JerseyPolice.

Davidhasworkedforthe UK FinancialServicesAuthorityandPensionsRegulator. In2001hejoined theGamingBoardforGreatBritain(latterlytheGamblingCommission)asInspectorforIntelligence &Operations,hewasalsoMoneyLaunderingReportingOfficerfortheBoard. In2006hejoinedthe JerseyCivilServiceasLegalandIntel ligenceManagerforRegulatoryServicesandtransferredtothe JerseyGamblingCommissionin2010. As Deputy ChiefExecutive David hasresponsibilityforprobity investigationsonapplicantsandtheproductionofguidanceandCodesofPractice. Heisam ember oftheStatesofJersey FinancialCrime StrategyGroupand theIAGRAMLworkinggroup .

TheCommissionwillcontinuetoensurethatthenumberofstaffissufficienttoprovidepromptand efficientadministrationandprocessingofapplicationsaswell aseffectiveregulatorysupervision.

LicensingandRegulation

TheCommissionlicencesandregulates four mainareas:

TerrestrialCommercialGambling ;

RemoteCommercialGambling;

Ancillary(Gambling)Services;

Charitable,ClubandSocialGambling.

Articles8& 9:Gambling(Jersey)Law2012

The Law is unambiguous; Article 8 states that it is an offence to provide a commercial gambling servicefromJerseywithoutalicenceandtheoffencecarriesamaximumof5yearsimprisonment andanunlimitedfine .Commercialgamblingiswhereagamblingserviceisprovidedbyatleastone person by way of business, to at least one person who gambles as a customer (not by way of business).Thisisdistinguishedfromanancillaryservice,knownasbusinesstobusine ssorB2Bwhere agamblingserviceisprovidedbywayofbusiness,butonlytootherswhoarealsoactingbywayofa commercialgamblingbusiness.

Article9requirestheCommissiontoconsultonandpublishitspoliciesonwhattypesofcommercial gamblingwillbelicensed,andwhatstandardconditionswillnormallybeimposedonlicencesfor differenttypesofcommercialgambling.Thesestatementan d policyrequirementsalsoextendto gambling promotions of charities and societies with permissions defined under the Gambling (Charitable and Membership Gambling Services) (Jersey) Regulations 2012 and also those B2B arrangementsoutlinedundertheGambl ing(AncillaryServicesandMiscellaneousProvisions)(Jersey) Regulations2012.

ApproachtoRegulation

TheCommissionappliesariskbasedapproachtoregulation,enablingittoprioritiseitseffortsand focusuponthosesectorsoftheindustrythathav ethegreatestimpactupontheIsland.Forthat reason, theCommissionconsiderstheregulationofthecommercialsectortobeahigherpriority 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 vulnerablepeople;

should be regulated in accordance with generally accepted inter national standards to preventfraudandmoneylaundering,andshouldnotbepermittedtobeasourceofcrime; and

shouldbeverifiablyfairtoconsumersofthoseservices.

Applyingtheseprinciplestopractice,asoundworkingrelationshipwiththereg ulatedsectorisof the utmostimportance.Self -reportingisaproductofthisrelationshipandbolsterstrustbetweenthe regulator and regulated. While regular inspections and spot -checks are undertaken to verify compliance,itisthedutyofalicensee todrawtheattentionoftheCommissiontoanissueandtake stepstoresolveit.Whilearegulatorysanctionmaybeappropriatedependinguponthenatureand scaleofthebreach,non -reportingimmediatelythreatensalicencebecauseofitsclearbreachof that trust previously mentioned. While self -reporting remains an appropriate means of lessening regulatorysanctionandincreasingcompliance,itisvitalthatalllicensees(andthisextendstothe charitable sector) are confident they can approach the C ommission knowing they will be treated fairly.

RegulatoryReview2016

Commercial

As of December 2016 , t he terrestrial industry in the Island is made up of 7 Class 1 Bookmakers (operating9 3 gamingmachines),4Class2(oncourse)Bookmakers,aPar imutualOperator(Jersey Race Club), 2 Crown and Anchor Operators (33 permissions granted), 29 Thrift Clubs, 3 Hosting Providers,aGamblingSoftwareProviderand 2 PersonalGamblingLicenceHolders. Thereisalsoa seasonalamusementwithprizes'licence awardedforthesummerseason (11events) aswellas 23 lower-stake gamblingmachineslicensedtooperateinpubs,clubsandrestaurants andonehigher - stake(Class4)machineinaprivatemembers ' club. Commercialenterpriseshavebeenabletoapply for aPromotionalPrizeLotterypermitsince2015andfiveweregrantedintheperiod.

All Licenced Betting Offices received a minimum of 1 Full Inspection , with a number receiving additional adhoc orthematicinspections . No majorissueswereidentified , with themajorityof LicencedBettingOfficesmeetingtherequisitestandardonthefirstvisit. AllholdersofClass1and Class2BookmakersLicencesarealsorequiredtocompleteandreturnto theCommissionanannual RegulatoryReturngivingdetails oftheirgamblingoperationsduringtheyear.

LevelsofThriftClubactivityvary year onyearand giventhepart -timenatureoftheseoperations analysisofthesereturnsreveal variationsinrecordkeepingandtheamountofgamblingconducted. Licensingcostsforthriftclubsarejudgedaccordingtothepreviousyears ' profitswiththoseupto £5,000attractingafeeof£25,profitsupto£10,000paya£75fee,whilethosewithprofitsinexcess

of thatlevelpay£150. Thegreatmajorityof thriftclubsfallintothefirstcategoryandtherefore receivetheirregulatoryoversightessentiallyforfree,giventhat£20ofthefeepaysforthecriminal recordscheckthatisundertaken. Althoughthriftclubsremainatthelowerendoftherisk -scalefor commercialgamblingitisimportantthattheyadheretothepolicyandlicenceconditionsappliedto themandimportantly,donotattempttoincentivisenon -members(whohavelikelynotcometo gamble)byofferingoddsotherthanequalchance.

Interestintheremotegamblingsectorcontinued , nodoubtassistedbythepositiveendorsementof theregulatoryregimestemmingfromthe2015 States' consultation. TheCommissionnowsupervises five remotelicensees (twoviatemporarylicences) and three permitholders( businesstobusinessor B2Bproviders). Workcontinuesonconvertingthetemporarylicenseestofullfive -yearlicencesas wellasprocessingthevariousotherrequestsforinformationreceived. OneapplicationforaB2B permitwassusp endedattheapplicant'srequestduetochangesinthecorporatestructure. The Commissionbelievesthatfurtherd evelopmentoftheremotegamblingsector can now be expected andwillscaleitsresourceaccordingly. Tothatend,theCommissionalsoatten dsmeetingsofthe Jersey E -Gaming Group in an advisory capacity to answer questions and ensure that regulatory requirementsareunderstoodandkeptunderreview.

Charitable During2016,thenumberofquestionsrelatingtotheCharitableGamblingPolicyledustoreviewthe documentandreproduceitinawaywhichwasmorereadilyintelligibletothelayman.Theoriginal policyfollowedtheformatusedforthegovernanceofco mmercialgamblingandthisapproachwas tooonerousfortheintendedaudience,whoarenotprofessionalgamblingoperators.Therulesand requirements for charitable gambling were mostly unaltered, being all prescribed in the Law. However,certainrequire mentswereremovedafteraconsultationwithmembersoftheAssociation ofJerseyCharities.TheCommissionisboundtoreviewitspoliciesannuallyandwillrevisitcharitable permissions in 2017. Presentations to better inform decision -makers about ch aritable gambling weremadeintheperiodandarevisiontotheadviceofferedthroughCitizensAdvicewasupdatedin November.

Anti-MoneyLaundering/CombatingtheFinancingofTerrorism

On 5 February 2013, the European Commission (EC) published proposals for a Fourth Money LaunderingDirectivetoupdatetheEuropeananti -moneylaundering("AML")andcounter -terrorism financingframework.DevisedinlinewiththerevisedinternationalrecommendationsoftheFinancial ActionTaskForce,theproposalsintrodu cekeychangestothescopeofAMLgamblingsupervision, whichcurrentlyconcentratesonvirtualandterrestrialcasinos.

Themainchangesappliedtogamblingindustryare:

TheDirectiveextendsthescopebeyondcasinos'tocoverprovidersofgamblingse rvices'.

TheDirectiveintroducesthenecessityforMemberStatestocarryoutariskassessmentat nationallevel;theECwillsetminimumfactorstobeconsideredintheseassessments.

Member States to choose between enhanced or simplified due diligence; but without exceptionduediligencemustbeapplied.

The duties mandated on the Supervisory Body by this AML revision mirror the licensing and regulatoryresponsibilitiesandpowersdefinedintheGamblingLaw,forexample:

Competentauthoritiesmustensu rethatownersandpersonsdirectingthebusinessare"fit andproper"todoso.

Competent authorities will have enhanced supervisory powers, e.g. to conduct on -site inspections.

ItisstilltooearlytoassessthelevelofimpactthattheFourthDirective willhaveinJerseyonthe terrestrialsector. TheJGCExecutive continuesto workwithcolleaguesinJerseyGovernmentto assess the level of risk and the appropriate level of compliance , which should be balanced and proportionate. The Commission is no t yet a Supervisory Body under Jersey Proceeds of Crime legislation,thatrolebeingundertakenbytheJerseyFinancialServicesCommission. However,recent applications for Schedule 2 Registration have shown that there is a good working relationship betweenthetworegulatorybodiesandthiswillonlydeepenas thenumberoflicenseesincrease .

Withtheexceptionofcasinobusiness (coveredbySchedule2ofthe ProceedsofCrime(Supervisory Bodies) (Jersey) Law 2008 as noted above) , all other commercial gambling is governed by the Commission's licence conditions and Codes of Practice in respect of anti -money laundering procedures. Thus, theCommission isanactivepartneroftheJFSCandsharescommon dutiesunder lawtoprotecttheIsland'sinternationa lreputation,toensureitslicenseesarefitandproperandto applyanti -moneylaunderinglegislation.

SocialResponsibility

Oneofthe mostimportant responsibilitiesoftheCommissionistheareaofsocialresponsibility.The Commissionseesthisasakeyfunction. Wehaveadutyunderthetermsofthelawto: protect childrenandothervulnerablepersonsfromaddictiontogamblingandfromotherf ormsofharm associated with gambling; make assistance available to persons who are or may be affected by problems related to excessive gambling; and to otherwise avoid and redu ce problems related to gambling'.

Partofthedatarequiredfromlicenseesisa nannualreturnstatingthenumbersandchangesinself - exclusions,thatis,peoplewhotaketheinitiativetostopgamblingandsignastatementwithan operator notingtheirdesiretostopgamblingwhichtheoperatoris contractually boundtohonour. In thet errestrialbookmakingsector136 self-exclusionsweremadeacrossthetotalestate, almost unchanged (132) fromthepreviousyear .ItisimportanttorecognizethatasJerseyhasnonational self-exclusion system, an individual has to self -exclude f rom each premises they wish to stop gamblingin.Theself -exclusionsnoted above therefore,arelikelytorepresentamuchsmallergroup ofpeoplewhohaveelectedtoexcludefromanumberofdifferentpremises.

Alllicensees locatedin theIsland must also payintothededicatedSocialResponsibilityFund ,with remotelicenseesabletocontributetootherfundsrecognizingtheiroff -Islandcustomerbase .Thisis deemeda moreequitablesystemthantheformer voluntaryopt -in,andithasguaranteedthefu ture ofthefund. AccountingfortheSocialResponsibilityFundisgovernedbyArticle10oftheGambling Commission (Jersey) Law 2010 and these funds are kept separate from the main Commission accounts. The fund is used by way of research, education, in formation, prevention, treatment, counsellingorothermeasurestosupportvulnerablepeoplefromaddictionandotherformsofharm associated with gambling. Specifically the Fund meets the costs of the www.gamblingtherapy.je websiteaswellaspublished materialdistributedtopublic -facinglicensees.

The Commission is working with stakeholders both within the States of Jersey and externally to assess other uses for the Fund and talks have taken place with the Health and Social Services departmentaboutwaysinwhichwecouldworktogethertodeliverbettersupportforcompulsive gamblersandbettereducationtothewidercommunity. Itishopedthat newdevelopmentswillbe forthcoming, but they have to be evidenced and in response to a defined need. The Fund is invaluable,butitcannotbeallowedtogrowwithoutaclearprogrammetodeliver.Tothatend , the Commissionwill continueto monitorexpenditureandothercallsonthe Fundandmay reconsider theamountofindustrycontributionssothattheymoreaccuratelyreflectthelevelofneed.

Atthecloseoftheyear,therewas £64,109 intheFund,upfrom£ 48,581in2015 .

GamblingTherapy

Since 2013, the Commission hasutilised theSocialResponsibilityFund to support GamblingTherapy (GT) andactivelypromotedtheservicesofferedvia adedicated Jerseywebpagethrough postersand leafletsforthisservice .TheseareavailableatallLicencedBettingOfficesandwereals odistr ibuted to Parish Hall s, Citizen's Advice Bureau and the Library. The Jersey site can be accessed via http://www.gamblingtherapy.je/. Feedbackfrom GamblingTherapyindicatesthat itreceived436 visitsto thesitefromJersey,representinga12.37%increasefromtheprevious12months ,however, tothebestofourknowledge ,no -onefromJerseyhasactuallyutilisedtheon -linecounsellingservice thatitoffers. Thiscouldbebecausethelevelofproblemga mblingintheIslandisverylowand, hopefully,thatisindeedthecase. TheCommissioncannottakethisforgrantedhoweverandwill continuetorequestevidenceandassessmentfromHealthandSocialServicesaswellastheThird Sectorforwaysinwhic hhelpcanbebroughttobearforthoseIslandersinneed.

FinancialCommentary

In keepingwithitsindependentstatusand recognising thecontinuingpressureonpublicfinances, theCommissionadopt ed fromitsinception apolicyof movingto fullfinanci alself -sufficiency. This wassubstantiallyachievedby2013. Financialself -sufficiencyisnotjustaprocessofbalancingthe books on a yearly basis , but involves being prepared to make investments of expenditure when neededinexcessofincome,solo ngasthisisnotstructuralorplacetheCommissionatrisk . Asa regulatorybody,theCommissionmust also bepreparedtorobustlydefenditsactionsandhavethe resourcesavailabletomeetforeseenchallenges.Ultimately, inextremis ,it wouldlookt o theStates forsupportwhereanissuecouldnotbeforecast,butingeneraltermsthepolicyoftheCommission istobuildareservecapableofmeetingitsobligationsmovingforward.

The Commission receives the majority of its funds from commercial lice nce fees . Reflecting the policydecisionin herentin theLaw,feesandchargesforthe charitable,socialandclub sector were markedlyreduced from2013onwards . Thereisnopublicfunding.

ThefollowingAccountsprovideanoverviewoftheCommission's incomeandexpenditurefor201 6 underFRS102 .

AsnotedintheChiefExecutive'sintroductorystatement,t heCommission has reported an operating deficitfortheyear of £15,777, inthemaindueto increasedadministrativecosts,but alsobecauseof the re-allocationofpartofoneremoteoperators'licencefeefrombeingwhollyin2016,into2017, reflecting that operator's positive decision to remain in the jurisdiction. The continuation of the licence(whichwastobesurrenderedinDecember)meantt hattheincomehadtobe apportioned acrossthefulltwelvemonthsandhencereducingtheincomeinthatyear. Incomefor2017will howeverbeincreasedproportionately.

Inlinewithitspolicies,theCommissionreviewsitsfeesandchargesannuallyinli ghtofitsaudited accounts.

AUDITED FINANCIAL STATEMENTS OF JERSEY GAMBLING COMMISSION FOR THE YEAR ENDED

31 DECEMBER 2016

CONTENTS PAGE Commissioners'report 13 Independentauditor'sreporttotheComptrollerandAuditorGeneral 15 Statementofcomprehensiveincomeandretainedearnings 17 Statementoffinancial position 18 Notestothefinancialstatements 19

COMMISSIONERS' REPORT ThecommissionerspresenttheirreportandtheauditedfinancialstatementsoftheJerseyGambling Commission ("theCommission") for theyearended31December2016 .

INCORPORATION

TheCommissionwasincorporatedinJerseyundertheGamblingCommission( Jersey)Law2010.

COMMISSIONERS Thecommissionerswhoservedduringtheyearwereasfollows:

MrGWhite,OBE (Resigned30September2016) MrPCruickshank (Resigned30September2016) MsDSebire

MrCWhelan

MrMSwan (Appointed4January2016)

RESULTS

ThefinancialstatementsprovideanoverviewoftheCommission's incomeandexpenditurefor2016 . The Commissionreports a deficit fortheyearof£ 15,777(2015 : surplus £37,799).

GOINGCONCERN Thecommissionersconsider,giventhefinancialconditionoftheCommission,theuseofthegoing concernbasisisappropriateforthecurrentyearandfor12monthsfromthedateofsigningthese financialstatements.

REGULATIONS

Thisreporthasbeenpre paredinaccordancewithFinancialReportingStandard102("FRS102")and therequirementsoftheGamblingCommission(Jersey)Law2010.

SOCIALRESPONSIBILITYFUND AccountingfortheSocialResponsibilityFundisgovernedbyArticle10oftheGamblingCo mmission (Jersey)Law2010andthesefundsarekeptseparatefromthemainCommissionaccounts.Thefundis

used by way of research, education, information, prevention, treatment, counselling or other measures to support vulnerable people from addiction a nd other forms of harm associated with gambling. SpecificallytheFundmeetsthecostsofthewww.gamblingtherapy.jewebsiteaswellas published material distributed to public -facing licensees. The Commission is working with stakeholdersbothwithinthe StatesofJerseyandexternallytoassess evidentially otherusesforthe Fund.

COMMISSIONERS'RESPONSIBILITIES

The commissioners are responsible for preparing the Commissioners' Report and the financial statementsinaccordancewithapplicablelawand regulations.  

COMMISSIONERS'REPORT(continued)

COMMISSIONERS'RESPONSIBILITIES(continued)

The Gambling Commission (Jersey) Law 2010 requires the commissioners to prepare financial statementsforeachfinancialyear.Underthatlaw,the commissionershaveelectedtopreparethe financialstatementsinaccordancewithFRS102.Thecommissionersmustnotapprovethefinancial statementsunlesstheyaresatisfiedthattheygiveatrueandfairviewofthestateofaffairsofthe Commissionandofthesurplusordeficitforthatyear.

Inpreparingthesefinancialstatements,thecommissionersarerequiredto:

selectsuitableaccountingpoliciesandthenapplythemconsistently;

makejudgementsandestimatesthatarereasonableandprudent; and

state whether applicable UK Accounting Standards have been followed, subject to any materialdeparturesdisclosedandexplainedinthe financialstatements;and

prepare the financial statements on a going concern basis unless it is inappropriate to presumethattheCommissionwillcontinueinbusiness.

The commissioners are responsible for keeping adequate accounting records that are sufficient to showandexplaintheCommission'stransactionsanddisclosewithreasonableaccuracyatanytime

the fi nancialposition ofthe Commission and enable them to ensure thatthe financialstatements complywiththeGamblingCommission(Jersey)Law2010.Theyarealsoresponsibleforsafeguarding theassetsoftheCommissionandhencefortakingreasonablesteps forthepreventionanddetection offraudandotherirregularities.

Eachofthepersonswhoisacommissioneratthedateofapprovalofthisreportconfirmthat:

so faraseachcommissionerisaware,thereisno relevantaudit informationofwhichthe Commission's auditor is unaware; and so far as each commissioner is aware, there is no relevantauditinformationofwhichtheCommission'sauditorisunaware;and

eachcommissionerhastakenallstepsthattheyoughttohavetakenasacommissionerto make themselves aware of any relevant audit information and to establish that the commissioners'auditorisawareofthatinformation.

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)Law2014),toappointDeloitteLLPasauditoroftheJerseyGamblingCommissionfortheyears ending31December2015to31December2019.

RegisteredOffice: SignedonbehalfoftheCommission TheJerseyGamblingCommission

4thFloor

OspreyHouse

5-7OldStreet ....... St Helier DrJasonLane

JE23RG ChiefExecutive

Approvedon 19th July2017

FORTHEYEARENDED31DECEMBER201 6

WehaveauditedthefinancialstatementsoftheJerseyGamblingCommission(the"Commission")forthe year ended31December2016whichcomprisetheStatement ofComprehensiveIncomeandRe tained Earnings, the Statement of Financial Position and the related notes 1 to 16. The financial reporting framework that has been applied in their preparation is the United Kingdom Generally Accepted AccountingPracticeapplicabletoSmallerEntities,includingFRS102"TheFinancialReportingStandard applicableintheUKandRepublicofIreland"andtherequirementsoftheGamblingCommission(Jersey) Law2010.

ThisreportismadesolelytotheCommission'smembers,asabody,inaccordancewithArticle18(4)of theGambling(Jersey)Law2010. Ourauditworkhasbeenundertakensothatwemightstatetothe Commission'smembersthosematterswearerequiredtos tatetotheminanauditor'sreportandforno otherpurpose. Tothefullestextentpermittedbylaw,wedonotacceptorassumeresponsibilityto anyoneotherthantheCommissionandtheCommission'smembersasabody,forourauditwork,forthis report,orfortheopinionswehaveformed.

Respectiveresponsibilitiesofcommissionersandauditor

As explained more fully in the Commissioners' Responsibilities Statement, the commissioners are responsibleforthepreparationofthefinancial statementsandforbeingsatisfiedthattheygiveatrue and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standardsrequireustocomplywiththeAuditingPracticesBoard'sEthicalStandardsforAuditors.

Scopeoftheauditofthefinancialstatements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement,whethercausedbyfraudorerror.Thisincludesanassessmentof:whethertheaccounting policies are appropriate to the Commission's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the commissioners;andtheoverallpresentationofthefinancialstatements. Inaddition,wereadallthe financialandnon -financialinformationintheannualreporttoidentifymaterialinconsistencieswiththe auditedfinancialstatementsandtoidentifyanyinformationthatisapparentlymateriallyincorrectbased on,ormateriallyinconsistentwith,theknowledgeacquiredbyusi nthecourseofperformingtheaudit. If we become aware of any apparent material misstatements or inconsistencies we consider the implicationsforourreport.

Opiniononfinancialstatements

giveatrueandfairviewofthestateoftheCommission'saffairsasat31 December2016 andofits profit orloss fortheyearthenended;

havebeenproperlypreparedinaccordancewithFRS102;and havebeenproperlypreparedinaccordancewiththerequirementsoftheGambling(Jersey)Law

2010.

GregoryBranch forandonbehalfof DeloitteLLP Jersey

Date: 19 July 2017

JERSEYGAMBLINGCOMMISSION

FOR THEYEARENDED31DECEMBER2016

STATEMENTOFCOMPREHENSIVEINCOMEANDRETAINED EARNINGS

Notes 2016 2015

£ £

TURNOVER 4 538,301 531,803

EXPENSES

Administrativeexpenses 554,833 494,951 (DEFICIT)/SURPLUSONORDINARYACTIVITIESBEFORE

(16,532) 36,852 INTERESTANDTAXATION

Interest receivableandsimilarincome 755 947 (DEFICIT)/SURPLUSONORDINARYACTIVITIESBEFORE

6 (15,777) 37,799 TAXATION

TAXATION 7 - -

(DEFICIT)/SURPLUSFORTHEFINANCIALYEARANDTOTAL

COMPREHENSIVEINCOME (15,777) 37,799 RETAINEDSURPLUSAT1JANUARY 265,361 227,562 RETAINEDSURPLUSAT31DECEMBER 249,584 265,361

The Commission'sturnover andexpensesallrelatetocontinuingoperations. Therearenorecognisedgainsorlossesotherthanthoseshownabove.

(The notes commencing on pages 19 to 25 form part of these Financial Statements)

JERSEYGAMBLING COMMISSION ASAT31DECEMBER201 6

STATEMENTOFFINANCIALPOSITION

FIXEDASSETS Property,plantandequipment

CURRENTASSETS Tradeandotherreceivables Cashandcashequivalents

CREDITORS:AMOUNTSFALLINGDUEWITHINONEYEAR Tradeandotherpayables

NETCURRENTASSETS TOTALASSETSLESSCURRENTLIABILITIES NETASSETS

ACCUMULATEDRESERVES SocialResponsibilityFund IncomeandExpenditureAccount


Notes 2016 2015

£ £

8 9,918 6,028

9 461,483 494,157 10 383,684 321,482 845,167 815,639

11 541,392 507,725 541,392 507,725

303,775 307,914 313,693 313,942 313,693 313,942

12 64,109 48,581 249,584 265,361

313,693 313,942

The financial statements on pages 17 to 25 have been prepared in accordance with the Gambling Commission(Jersey)Law2010andFinancialReportingStandard102(1A)applicabletosmallentities.

The accountswereapprovedandauthorisedforissueon 19 July2017 bytheJerseyGamblingCommission andsignedonitsbehalfby:

DrJasonLane ChiefExecutive

(The notes commencing on pages 19 to 25 form part of these Financial Statements)

JERSEYGAMBLING COMMISSION FORTHEYEARENDED31DECEMBER201 6

NOTESTOTHEFINANCIALSTATEMENTS

  1. GeneralInformation

TheJerseyGambling Commission(the"Commission")wascreatedbytheGamblingCommission(Jersey) Law2010andisresponsibleforthelicensing,registrationandregulationofgamblingintheIslandofJersey. Thislawtransferredallresponsibilitiesforlicensing,registrat ionandregulationofgamblingprescribedas thedutyoftheMinister,theformerLicensingAssemblyorotherStatesbodiestothisnewAuthority.The Commissionisabodycorporat e and itsregistered office is4th Floor, Osprey House, 5-7 Old Street,St Helier,Jersey,JE23RG .

  1. Statementofcompliance

The financial statements have been prepared in compliance with Section 1A of Financial Reporting Standard102(FRS102)TheFinancialReportingStandardapplicableintheUKand RepublicofIreland' issuedbytheFinancialReportingCouncilandtheGamblingCommission(Jersey)Law2010.

  1. Summaryofsignificantaccountingpolicies Theprincipleaccountingpoliciesappliedinthepreparationofthesefinancialstatementsaresetoutbelow. Thesepolicieshavebeenconsistentlyappliedtoallyearspresented,unlessotherwisestated.

Basisofaccounting

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 qualifyingentitiescertaindisclosureexemptions.TheCommissionhastaken advantageoftheexemption frompreparingastatementofcashflows.

Accountingestimates Thepreparationoffinancialstatementsrequirestheuseofcertainaccountingestimates.Italsorequires managementtoexerciseitsjudgementintheprocessofapplyingaccountingpolicies.Accountingestimates involvemanagement'sjudgmentofexpectedf uturebenefitsandobligationsrelatingtoassetsandliabilities (and associated expenses and income) based on information that best reflects the conditions and circumstancesthatexistatthereportingdate.Therehavebeennochangestotheaccountinge stimates fromthepreviousfinancialyear.

Goingconcern

The Commission meets its day -to-day working capital requirements through its bank facilities. After reviewingtheCommission'sforecastsandprojections,thecommissionershavea reasonableexpectation that the Commission has adequate resources to continue in operational existence for the foreseeable future.Thecommissionersconsider,giventhefinancialconditionoftheCommission,theuseofthegoing concern basis is appropriat e for the current year and for 12 months from the date of signing these accounts.

NOTESTOTHEFINANCIALSTATEMENTS(continued)

Revenuerecognition

Revenueis recognisedtotheextentthattheCommissionobtainstherighttoconsiderationinexchangefor services rendered. Revenue comprises the fair value of consideration received and receivable after discounts.

Licencefees

Under the terms of Gambling (Jersey) Law 2012 and subordinate legislation, licences granted by the Commissionarevalidforuptofiveyears.Non -refundablelicencefeesarepayableonissueofthelicence andateachanniversaryofitsissue.Non -refundablelicencefeesareinitiallyrecordedasdeferredincome andreleasedovertheperiodofthelicenceasthecommissionersbelievethatthistreatmentmatchesthe incomegeneratedintheperiodwiththeassociatedexpenditure.

Socialpermits andregistrations Incomefromthesepermitsandregistrationsisrecognisedwhenthepermitisissued.

Expenses Expensesareaccountedforonanaccrualsbasis.

Pensioncosts

Staff initially employed by the States of Jersey before 3 September 2010 of which there are two are membersofthePublicEmployeesContributoryRetirementScheme("PECRS")which,whilstafinalsalary scheme,isnotaconventionaldefinedbenefitschemebecausetheemplo yerisnotnecessarilyresponsible formeetinganyon -goingdeficitinthescheme.TheassetsareheldseparatelyfromthoseoftheStatesof Jersey.Contributionratesaredeterminedbyanindependentqualifiedactuarysoastospreadthecostsof providingbenefitsoverthemembers'expectedservicelives.

BecausetheCommissionisunabletoreadilyidentifyitsshareofunderlyi ngassetsandliabilitiesofPE CRS, contributionstotheschemehavebeenaccountedforasiftheyarecontributionstoa definedcontribution schemeatarateof13.6%(2015 13.6%).Thisrateistheexpectedtocont inuetobepayableduring2017 .

Actuarial valuations are performed on a triennial basis; the most recently published was the PECRS ActuarialValuationfor31De cember2013on13March2015.Themainpurposesofthevaluationsareto reviewtheoperationofthescheme,toreportonitsfinancialcondition,andtoconfirmtheadequacyofthe contributionstosupporttheschemebenefits.

Copiesofthe latestannualaccountsofthescheme,andStatesofJersey,maybeobtainedfromtheStates Treasury,CyrilLeMarquandHouse,TheParade,St . Helier,JE48UL.

Property,plantandequipment

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 attributabletobringingtheassettoitsworkingconditionforitsintendeduse.

Repairsandmaintenancecostsareexpensedasincurred.

JERSEYGAMBLINGCOMMISSION FORTHEYEARENDED31DECEMBER201 6

NOTESTOTHEFINANCIALSTATEMENTS(continued)

Fullydepreciated property,plant& equipment are retained in thecostof property,plant&equipmentand relatedaccumulateddepreciationuntiltheyareremovedfromservice.Inthecaseofdisposals,assetsand relateddepreciationareremovedfromthefinancialstatementsandthenetamount,lessp roceedsfrom disposal,ischargedorcreditedtotheprofitandlossaccount.

Depreciation

Depreciationiscalculatedonstraight -linebasistoallocatethedepreciableamountontheassetsovertheir estimatedusefuleconomic livesasfollows:

Websitecosts Overanestimatedusefullifeof3years Computerequipment Overanestimatedusefullifeof3years Fixtures&fittings Overan estimatedusefullifeof5 years

TheCommission'spolicyistoreviewtheremainingusefuleconomiclivesandresidualvaluesof property, plantandequipmentonano ngoingbasisandtoadjustthe depreciation chargetoreflecttheremaining estimatedusefuleconomiclifeandresidualvalue.

Financialinstruments TheCommissionhaschosentoadoptSections11ofFRS102inrespectoffinancialinstruments.

(i)FinancialAssets

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 transactionismeasuredatthepresentvalueofthefuturereceipt sdiscountedatamarketrateofinterest.

Financialassetsarederecognisedwhen(a)thecontractualrightstothecashflowsfromtheassetexpireor aresettled,or(b)substantiallyalltherisksandrewardsoftheownershipoftheassetare transferredto anotherpartyor(c)despitehavingretainedsomesignificantrisksandrewardsofownership,controlofthe assethasbeentransferredtoanotherpartywhohasthepracticalabilitytounilaterallyselltheassettoan unrelatedthirdparty withoutimposingadditionalrestrictions.

(ii)Financialliabilities

Basicfinancialliabilities,includingtradeandotherpayablesareinitiallyrecognisedattransactionprice, unlessthearrangementconstitutesafinancingtransaction, wherethedebtinstrumentismeasuredatthe presentvalueofthefuturereceiptsdiscountedatamarketrateofinterest.

Tradepayablesareobligationstopayforgoodsorservicesthathavebeenacquiredintheordinarycourse ofbusinessfrom suppliers.Accountspayableareclassifiedascurrentliabilitiesifpaymentisduewithinone yearorless.Ifnot,theyarepresentedasnon -currentliabilities.Tradepayab lesarerecognisedinitiallyat transactionpriceandsubsequentlymeasuredatam ortisedcostusingtheeffectiveinterestmethod.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligationisdischarged,cancelledorexpires.

Cashandcashequivalents

Cash and cash equivalents comprise cash on hand and other short -term highly liquid investments with originalmaturitiesofthreemonthsorless.

JERSEYGAMBLINGCOMMISSION FORTHEYEARENDED31DECEMBER201 6

NOTESTOTHEFINANCIALSTATEMENTS(continued)

Provisions ProvisionsarerecognisedwhentheCommissionhasapresentlegalorconstructiveobligationasaresultof

pastevents;itisprobablethatanoutflowofresourceswillberequiredtosettletheobligation;andthe amountofthe obligationcanbeestimatedreliably.

Contingencies Contingentliabilities,arisingasaresultofpastevents,aredisclosedwhenitispossiblethattherewillbean outflow of resources but the amount cannot be reliably measured at the reporting date. Contingent liabilitiesaredisclosedinthefinancialstatementsunlesstheprobabilityofanoutflowisremote.

Contingentassetsaredisclosedinthefinancialstatementsbutnotrecognisedwhereaninflowofeconomic benefits isprobable.

  1. Analysisofturnoverbycategory 2016 2015

£ £

Licencefees 533,206 527,133 Socialpermits 620 600 Socialregistrations 1,500 1,520 Softwaredesignerspermits 1,250 1,250 Otherincome 1,725 1,300

538,301 531,803

  1. Payrollcosts 2016 2015

£ £

Staffsalaries 301,252 275,093 Commissioners'fees 84,500 75,500 Employerpensioncontributions 25,160 20,129

410,912 370,722 2016 2015

Numberofpermanentstaffemployedduringtheyear 5 5

  1. Surplusforthefinancialyear

Surplusforthefinancialyearisstatedaftercharging: 2016 2015

£ £

Auditorsremuneration 6,700 7,500 Depreciation 6,455 6,007

13,155 13,507

JERSEYGAMBLINGCOMMISSION FORTHEYEARENDED31DECEMBER201 6

NOTESTOTHE FINANCIALSTATEMENTS (continued)

  1. Taxation Article17oftheGamblingCommission(Jersey)Law2010providesthattheincomeoftheCommissionshall

notbeliabletoincometaxundertheIncomeTax(Jersey)Law 1961.TheCommissionisregisteredfor GoodsandServicesTax(GST)underTheGoodsandServicesTax(Jersey)Law2007.At theyearended31 December2016 theCommissionwasduearepaymentof £1,027(2015: £966).

  1. Property,plantandequipment

Computer Fixtures&

WebsiteCosts Equipment fittings Total

£ £ £ £

Cost

Balancebroughtforward 8,238 20,073 - 28,311 Additions 1,500 7,345 1,500 10,345

Balancecarriedforward 9,738 27,418 1,500 38,656

Depreciation

Balancebroughtforward 6,542 15,741 - 22,283 Chargefortheyear 1,480 4,800 175 6,455 Balancecarriedforward 8,022 20,541 175 28,738

Netbookvalue

Balancecarriedforward 1,716 6,877 1,325 9,918 Balancebroughtforward 1,696 4,332 - 6,028

  1. Tradeandotherreceivables 2016 2015

£ £

Licencefeesreceivable 444,223 485,338 Otherdebtors 17,260 8,819

461,483 494,157

Alldebtorsarerepayablewithinoneyear.

  1. Cashandcashequivalents

Thecas hincludes£52,459(2015 32,832)relatingtotheSocialResponsibilityFund.TheuseoftheSocial ResponsibilityFundisrestrictedbyArticle10oftheGamblingCommission(Jersey)Law2010.

NOTESTOTHE FINANCIALSTATEMENTS (continued)

  1. Tradeandotherpayables 2016 2015

£ £

Amountsdueinlessthanoneyear:

Licencefeesbilledinadvance 508,298 477,330 Othercreditorsandaccruals 33,094 30,395

541,392 507,725

  1. SocialResponsibilityFund

TocomplywithArticle10(1)oftheGamblingCommission(Jersey)Law2010,theCommissionaccountsfor theSocialResponsibilityFundseparatelyfromitsgeneralfunds.

2016 2015

£ £

Balancebroughtforward 48,581 22,217 Amountsbilled 15,700 29,364 Amountsused (172) (3,000)

Balancecarriedforward 64,109 48,581

  1. Relatedpartytransactions

DuringtheyearsalariespaidtotheCommissionerstotalled£ 84,500(201 5:£ 75,500).TheCommissioners didnotreceiveanyotherbenefitsforservices renderedinthecurrentorprioryear.Noothertransactions withrelatedpartieswereundertakensuchasarerequiredtobedisclosedunderUnitedKingdomGenerally AcceptedAccountingPrinciples,includingFRS102andtheGamblingCommission(Jersey)Law 2010.

  1. Leases

Onthe1January2013,theCommissionenteredintoaleaseagreementinrespectofitsofficesatSalisbury Houseatarateof£12,000perannumuntilJune2016.

Onthe7June2016,theCommission enteredintoaleaseagreement inrespectofitsofficesatOsprey Houseuntil31Oc tober2018.Theannualrentis £32,680from17June2016to31Octoberand£34,400 from31 October2016to31October2018.TheCommissionpaysallpropertyrelatedexpens es.

NOTESTOTHE FINANCIALSTATEMENTS (continued)

  1. Ultimatecontrollingparty

TheJerseyGamblingCommissionisacorporatebodywithoutsharecapital.Itis independentoftheStates ofJerseyandasaresultthereisnoultimatecontrollingparty.

  1. Eventsafterthestatementoffinancialpositiondate Noeventsoccurredafterthebalancesheetdatewhicharerequiredtobedisclosed bytheentity.