Jersey Gambling Commission Annual Report and Accounts 2015

2015

JerseyGamblingCommission

AnnualReportandAccounts

R.97/2017

CONTENTS

Chairman'sStatement ............................................................................................................................2 ChiefExecutive'sStatement ...................................................................................................................3 TheBoard ................................................................................................................................................5 TheExecutive ..........................................................................................................................................7 LicensingandRegulation ........................................................................................................................8 ApproachtoRegulation ..........................................................................................................................8 Anti-MoneyLaundering/CombatingtheFinancingofTerrorism ........................................................10 SocialResponsibility .............................................................................................................................11 FinancialCommentary ..........................................................................................................................12

AuditedFinancialStatements ..............................................................................................................13 Note:Pleaserefertoseparatecontents pageforAuditedF inancialStatementsfrompage13 onwards

___________________________________________________________________________ Note

This report is re-published due to an error in the earlier version published as R.83/2016

Chairman'sStatement

Itismypleasuretopresentthis,thefifth AnnualReportoftheJerseyGamblingCommission tothe MinisterofEconomicDevelopment ,Tourism,SportandCulture forsubmissiontotheStates. Since myappointmentas SpecialAdviser,then Shadow'Commissioner andultimately Chairmanofthe States-appointed Commission, I have been tremendously impressed to see how Jersey is able to constantlypunchaboveitsweigh tintermsof adaptability,speedofchangeandreputationonwhat isaworldwidestage.Thegamblingindustryhasalsoevolvedandadaptedduringmytenureofoffice andseeksjurisdictionsthathaveintegrity,highlydevelopedstandardsofregulationan dareputation forensuringthatshort -termeconomicadvantageisnotputbeforelong -termstability.Jerseyis,and remainssuchajurisdiction.

Beliefinthesesentiments , however, shouldnotbetakenforgrantedand must periodicallybeputto thetest .During2015IwaspleasedtonotethattheChiefMinister'sDepartment,supportedbyour sponsoring department, Economic Development, undertook a research exercise and consultation into e -gaming and e -gambling as part of an on -going evaluation of busine ss initiatives and risk awarenessinJersey. NotingthatdevelopinganinnovativedigitalandtechnologysectorforJersey wassetasastrategicpriority,theGovernmentconcludedthat:

• reputational risks exist in the sector , but evidence demonstrates th at those risks can b e effectivelymitigatedbyrobustandeffectiveregulation

• Jerseyshouldexplorealternativeopportunitiesforrobustandeffectiveregulationforthe eGamingsector. IndoingsoGovernmentshouldconsultwithrelevantbodies

• greater considerationneedstobegiventohowJerseycanaccessanalreadywell -established industry and market itself to the outside world in order to benefit from this area of the economy

• Jersey should explore opportunities to increase the effectiveness of mark eting and promotionofthesector .

As a Commission we naturally focus upon our statutory duties and our guiding principles that gambling shouldbeconductedresponsiblyandwithsafeguardsnecessarytoprotectchildrenand vulnerablepeople; shouldbe regulatedinaccordancewithinternationalstandardstopreventfraud andmoneylaundering,andshouldnotbepermittedtobeasourceofcrime;and shouldbeverifiably fairtoconsumers.TothatendIbelievethatthestatutorylegalframework which Jerseyhasputin place forthe licensing and regulation ofgambling to be world -class. Similarly,Ibelieve thatthe regulatorysupervisionundertakenbytheCommissiontobeworld -classandourexperiencewould bear out the government's assertion that this is the best form of risk -mitigation. Of course, we shouldnotrest onourlaurelsandtheverydynamismoftheindustrydemandsthatregulationand licensing continues to change and evolve. The Commission will, therefore, continue to build it s network o f MoUs, extend its involvement in international regulatory associations and invest in trainingandcareerdevelopment foritsexecutive.

The timing of the States consultation was also beneficial as it coincided with the application, assessmentandgrant oftemporarylicencestotheIsland's latest remotegamblinglicensees.These companiesalsounderwentreviewandassessmentbytheStatesPopulationOfficeforthegrantofa Control of Housing and Work Licence, as well as by the Jersey Fin ancial Service s Commission for registrationunderSchedule2oftheProceedsofCrime(Jersey)Law1999. Thereisnodoubtthat Jerseywillcontinuetoattracthighqualityapplicantsforremotegamblinglicencesandthatthese companieswill contributeto theeconomic benefitthattheGovernmentofJerseyreferredtoinits statementnotedabove.

GiventhatthiswillbemylastAnnualReport,itwouldbemostremissifIdidnotputonrecordmy sincereappreciationtoallthestaff,pastandpresent,butparticularly DrLanemyCEOandDavid Evanshisdeputy,fortheirdiligenceandhardworkofmanyyears. Iam alsoverypleasedtobe sharingthenextyearuntiltheendofmyterminofficewithourthreenewCommissioners,Advocate CyrilWhelan( Deputy Chairman),De bbieSebireandA dvocateMatthewSwan. Theyare wiseand highlyexperiencedindividualsandthereisnodoubtthatundertheirstewardshiptheCommission,

and consequently Jersey, will go from strength to strength. Thanks too must also go to Jeremy ArnoldwhoretiredduringtheyearandCommissionerP eterCruickshankwhowillfinishhistermof office with me. It has been a great privilege to have been the Chairman of the Jersey Gambling Commissionand Iwishiteverysuccessinthefuture.

GrahamWhite,OBE Chairman

ChiefExecutive'sStatement

The past year has been a demanding one for the Commission, but has also seen a number of extremely positive developments . The Minister's statement of November 2015 that Jersey's governmentwouldcontinueapermissiveregimeine -gamingwasmostwelcomeand supports the stronglevelsofassuranceandregulatorycompliancerequiredbytheCommissionofallitslicensees. InterestinJerseyasajurisdictionhasbeen developing andtheCommissionisplanningtogrowits levelofresourcetomatchit .Theinc reaseexpectedintheremoteoronlinesector,however,isnot mirrored across the industry and the Island's bookmakers in particular continue to face difficult marketconditionswithonelocalbusinessdecidingnottorenewitslicencefor2016.Thisis anarea theCommissionwillcontinuetomonitorasitrepresentsagradualreductioninthesizeofthesector sinceitspeakin 2014whentherewerebriefly30shops , downto 27bytheendof2015.

This reduction will, necessarily impact upon the Commissi on's revenue. Importantly the JGC continues to operate without any direct cost to or subsidy from the taxpayer. Licence fees are reviewed annually, but the Board took the view that no increases were necessary given the Commission'smodestoverallsurplus . Lookingtothefuture,however,thelikelihoodremainsofa reduced income from the terrestrial industry and greater expenditure required to oversee applicationsforremotelicensing.TothatenditmaybethattheCommissionseesdecliningincome before the take -up of remote licensing makes up the shortfall. That is not a concern however, insofarasitisplannedandproperlybudgetedfor.

InFebruary theCommissionsignedanMoUwiththeAlderneyGamblingControlCommission anda furtherMoUin AugustwiththeMohawkTerritoryofKahnawake . Byandofthemselves, MoUsdo notmodifyorsupersedeanylawsor applicable regulatoryrequirements,butsetforthastatementof mutualintentforco -operationandassistanceinareassuchasthesharingof informationandthe conductingofinvestigations. Giventhatremotegamblingisaninternationalindustrytranscending jurisdictionalborders,itrequiresregulatorsaroundtheworldtoworktogether.Tothatend, theJGC regardsthese MoUs asasignific antstepinenhancingthereputationoftheeGamblingindustryin theChannelIslands.

Links to other regulatory bodies continue through membership of international regulatory associations such as the International Association of Gaming Regulators (IAGR) and the Gaming RegulatorsEuropeanForum (GREF). Throughout2015Jersey,throughmyChairmanshipofGREF, wasattheheartofdiscussionsaroundregulatorybestpractice,culminatingwith theannualmeeting of the Forum during May in Vilnius, Lithuania . That meeting focussed on crime in gambling, considering match -fixing, EU customer case studies, Suspicious Activity Reporting Ty pologies and methodologiesfordetection.Jerseyisalsoactivewithi nIAGRworkinggroupsonremote gambling andisafounder memberoftheIAGRAnti -MoneyLaunderingGroup.

A minor amendment to the Gambling (Jersey) Law 2012 was made by Ministerial Order in July, changing the meaning of exempt finance business' and consequent to the transfer to the ComptrollerandAuditor -Generalin2014ofthepowertoappointexternalauditors,thisisthefirst reportpreparedunderthenewfinancialreportingregime.

WiththecompletionoftheBoard'ssecondtermduein2016,itwasalsoarequirementtoadvisethe Minister of suitable candidates for appointment so that a handover period would take place. Consequentlythe Commission advertisedlocallyforcandidatesi naprocessoverseenbytheJersey Appointments Commission and with representation from the Commission, the department and StatesHumanResources. Iamdelightedtoreportthatthepositionsattractedcandidatesofthe highest integrity and professionali sm and competition for the posts was very strong. At its conclusiontheChairmanwaspleasedtorecommendtotheMinisterthefollowingindividualsfor appointment:

AdvocateCyrilWhelan ,as Deputy Chairman(fromNovember 2015); MsDebbieSebi reasCommi ssioner(fromNovember 2015);and AdvocateMatthewSwanasCommissioner(deferredtoJanuary2016).

TheseappointmentsfurtherstrengthentheBoard andensurecontinuityintothefuture.

DrJasonLane ChiefExecutive

TheBoard

GRAHAMWHITE,OBE

CHAIRMAN

PETERCRUICKSHANK COMMISSIONER

JEREMYARNOLD COMMISSIONER

CYRILWHELAN DEPUTYCHAIRMAN

DEBBIESEBIRE COMMISSIONER

TheChairman,GrahamWhiteOBE,isawellknownregulatorofsome30yearsexperience,having servedasChiefInspectoroftheGamingBoardand then the UK GamblingCommission. Grahamisa past trustee of the Gordon Moody Association (a charity providing residential care to problem gamblers)andremainsinvolvedinactiontoassistproblemgamblersthroughworkwiththeRoyal CollegeofGeneralPractit ioners. GrahamhasbeenanactivememberofbothGREFandIAGRfor manyyears.

PeterCruickshankbringse xtensivebusinessexperiencetotheBoard,havingbuiltupasuccessful moneybrokingfirmandrepresentingtheLondonSterlingBrokersAssociationasitsSecretaryandin itsdealingswiththeBankofEngland.

JeremyArnold resignedasCommissionerin November. FormerlyapartnerwithAr thurAndersen, he focussed on practice management, training and quality control , experience that has been enormouslybeneficialtotheBoardoftheJGC .

CalledtotheEnglishbarin1979andtotheJerseybarin1982, AdvocateWhelanspent28yearsas seniorlegaladviserintheLawOfficers'DepartmentinJersey. Hewasappointedtotheofficeof 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. AdvocateWhelanretiredfromtheLawOfficers'Departmentin2007andiscurrentlya SeniorConsultantatthelocallawfirmBakerandPartners. Amongotherpositionsofpublicservi ce, heactsasoneofJersey'sreliefCoroners. AdvocateWhelan became aCommissioneroftheJersey FinancialServicesCommission on 1st June2010 .

Ms Sebire is currently a Member of the Jersey Police Complaints Authority and a non -executive directorofC outts&CoTrustees(Jersey)Limited. From2004to2012MsSebirewastheDirector, TrustCompanyBusinessfortheJerseyFinancialServicesCommission.Followingtheintroductionof trust company regulation, this role involved establishing a practical f ramework to supervise trust companiesinaccordancewiththenewlyintroducedLaws,OrdersandCodesofPractice.From1991 to2004MsSebireworkedasaDirectorofCitigroup'sJerseyTrustCompany,responsibleatvarious timesforrunningtheJerseyTrus tCompanyandaMutualFundUnit. MsSebireisanAssociateofthe CharteredInstituteofBankersandaMemberoftheSocietyofTrustandEstatePractitioners.

TheExecutive

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

JASONLANE CHIEFEXECUTIVE

DAVIDEVANS HEADOFLEGALANDREGULATION

Jasonstartedhiscareerasagamingregulatorin2001withintheJerseyCivilService. Aspartof governmentalreformsin2003gamblingbecamepartofthenewlyformedEconomicDevelopment Department and Jason took responsibility for a wider set of regul atory functions as Director of Regulatory Services. Jason left the civil service and became Chief Executive of the independent JerseyGamblingCommissiononitsinceptionin2010. JasonhasdegreesinPolitics,International StudiesandaPhDinPolicin g.He waselected Chairmanof GREFfor2014 -16,is anactiveparticipant intheIAGRe -gamingworkinggroupandamemberoftheInternationalMastersofGamingLaw.In 2014JasonwasappointedbytheMinisterforHomeAffairsasafoundingBoardMembero fthe JerseyPoliceAuthorityandbecame Deputy Chairmanin2015,wherehehasoversight ofbusiness andperformancemanagement,workforcemanagementandsuccessionplanningwithintheStatesof JerseyPolice.

DavidhasworkedfortheFinancialServicesAu thorityandPensionsRegulator. In2001hejoinedthe GamingBoardforGreatBritain(latterlytheGamblingCommission)asInspectorforIntelligence& Operations,hewasalsoMoneyLaunderingReportingOfficerfortheBoard. In2006hejoinedthe Jersey CivilServiceasLegalandIntelligenceManagerforRegulatoryServicesandtransferredtothe JerseyGamblingCommissionin2010. Hehasresponsibilityforprobityinvestigationsonapplicants and the production of guidance and Codes of Practice. He is a member of the States of Jersey FinancialCrime StrategyGroupand theIAGRAMLworkinggroup .

TheCommissionwillcontinuetoensurethatthenumberofstaffissufficienttoprovidepromptand efficientadministrationandprocessingofapplicationsas wellaseffectiveregulatorysupervision.

LicensingandRegulation

TheCommissionlicencesandregulates four mainareas:

• TerrestrialCommercialGambling ;

• RemoteCommercialGambling;

• Ancillary(Gambling)Services;

• Charitable,ClubandSocialGambling.

Article9:Gambling(Jersey)Law2012

The Law is unambiguous; Article 8 states that it is an offence to provide a commercial gambling servicefromJerseywithoutalicenceandtheoffencecarriesamaximumof5yearsimprisonment andanunlimitedfine.Com mercialgamblingiswhereagamblingserviceisprovidedbyatleastone person by way of business, to at least one person who gambles as a customer (not by way of business).Thisisdistinguishedfromanancillaryservice,knownasbusinesstobusinessor B2Bwhere agamblingserviceisprovidedbywayofbusiness,butonlytootherswhoarealsoactingbywayofa commercialgamblingbusiness.

Article9requirestheCommissiontoconsultonandpublishitspoliciesonwhattypesofcommercial gamblingwi llbelicensed,andwhatstandardconditionswillnormallybeimposedonlicencesfor differenttypesofcommercialgambling.Thesestatementand policyrequirementsalsoextendto gambling promotions of charities and societies with permissions defined und er the Gambling (Charitable and Membership Gambling Services) (Jersey) Regulations 2012 and also those B2B arrangementsoutlinedundertheGambling(AncillaryServicesandMiscellaneousProvisions)(Jersey) Regulations2012.

ApproachtoRegulation

TheCom missioncontinuestobebothproactiveandresponsiveinitsregulationandoperatesarisk basedapproachthatenablesittoprioritiseitseffortsandfocusuponthosesectorsoftheindustry that have the greatest impact upon the Island. For that reaso n the Commission considers the regulation ofthecommercialsectorto beahigherprioritythan charitableand societygambling. Naturally,weapplytheguidingprinciplesenshrinedinArticle4oftheCommissionLawwhichdirects that we must, in the performance of all of our functions, have regard to the principles that any gamblingservicesprovided

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

• should be regulated in accordance with generally accepted international standards to preventfraudandmoneylaundering,andshouldnotbepermittedtobeasourceofcrime; and

• shouldbeverifiablyfairtoconsumersofthoseservices.

Webelievethatagoodworkingrelationshipwiththe regulatedsectorisofparamountimportanceto effective regulation and encourage a two -way dialogue particularly with regard to self -reporting. WhiletheCommissionundertakeregularinspections and spot-checks toverifycompliance,it isthe dutyofal icenseetodrawtheattentionoftheCommissiontoanissueandtakestepstoresolveit. Whilearegulatorysanctionmaybeappropriatedependinguponthenatureandscaleofthebr each, non-reportingimmediatelythreatensalicencebecauseofitsclear breachoftrust.Self -reporting is thusanappropriatemeans oflesseningregulatorysanctionandincreasingcompliance, butitisvital that all licensees, be they commercial or charitable, are confident that they can approach the Commissionintheknowl edgethattheywillbetreatedfairly.TothatendtheInspectionProgramme providesanexcellentmethodofmaintainingandenhancingrelationshipswiththeindustry.

As of December 2015, t he terrestrial industry in the Island is made up of 7 Class 1 Boo kmakers (operating9 2 gamingmachines),4Class2(oncourse)Bookmakers,aPar imutualOperator(Jersey RaceClub),2CrownandAnchorOperators,26ThriftClubs,2HostingProviders,aGamblingSoftware Providerand 4 PersonalGamblingLicenceHolders. Thereisalsoaseasonalamusementwithprizes' licenceawardedforthesummerseasonaswellasasmallnumberofgamblingmachineslicensedto operateinpubs,clubsandrestaurants.

AsnotedintheChiefExecutive'sopeningstatement, theIslandhas seen a reductioninthenumbers of LicencedBettingOffices fromapeakof30in July2014 , backdownto29bytheendofthatyear andnow27asat31 st December2015. Theincreaseinoperatingcosts togetherwiththeavailability ofonlinealternatives maygosomewaytoexplainingthisdecline. Thebookmakingsectortherefore remainshighlycompetitiveinJerseyandalthoughthenewLawallowsforgreaterflexibility(insofar astheformercaponlicences was removed)thecurrenttrendwouldsuggestt hatthesustainable marketlevelhasbeenreached. Total(Jersey -based)staffinthesectornumber100.

All Licenced Betting Offices received a minimum of 1 Full Inspection , with a number receiving additional adhoc orthematicinspections . No major issueswereidentified , with themajorityof LicencedBettingOfficesmeetingtherequisitestandardonthefirstvisit. AllholdersofClass1and Class2BookmakersLicencesarealsorequiredtocompleteandreturnto theCommissionanannual RegulatoryReturngivingdetailsoftheirgamblingoperationsduringtheyear. Asaconsequenceof thechangestotheA ssociationof British Bookmakers' Code in2014 ,all gamingmachine programmes were checkedagainsttheCertificatesfr omtheirtestinghouses;t histask encompassedsome 150 differentgames.

LevelsofThriftClubactivityvary year onyearand analysisofthesereturnsreveal somevariationsin recordkeepingandtheamountofgamblingconducted. Licensingcostsforthriftclubsarejudged accordingtothepreviousyears ' profitswiththoseupto£5,000attractingafeeof£25,profitsupto £10,000paya£75fee,whilethosewithprofitsinexcess of thatlevelpay£150. Thegreatmajority of thriftclubsfallintothefirstcategoryandthereforereceivetheirregulatoryoversightessentially forfree,giventhat£20ofthefeepaysforthecriminalrecordscheckthatisundertaken. Although thriftclubsremainatthelowerendoftherisk -scaleforcommercialgamblingitisimportantthat theyadheretothepolicyandlicenceconditionsappliedtothemandimportantly,donotattemptto incentivisenon -members(whohavelikelynotcometogamble)byofferingoddsotherthanequal chance.

Interest in the remote gambling sector continued during the year, although there is evidence to suggest thatsomecompaniesmayhave avoided adecisionaboutlocatingintheIsland while the Statesconsultation processwasincourse . Bethatasitmay,the veryclearpositiveendorsement thatwasissuedbytheEconomicDevelopmentMinisterattheconclusionoftheconsultationprocess waswarmlyreceived,notleastbythethreenewlicenseesthatestablishedthemselvesintheIsland

during 2015. This brings the number of remote licensees to four and of permit holders (B2B providers)tothree. Developmentoftheremotegamblingsectoris nowexpectedinthecoming yearsandtheCommissionwillscaleitsresourceaccordingly.

RegulationoftheCharitableand Socialsector remainsanimportantareaofwork. Reflectingthe levelofcommensuraterisk, theCommission hasadopted alight -touchapproach andoversightis achievedbyarandomsamplingfromthetotalnumberofregistrationsa swellas requiringthem to provide details oftheirgambling in the form ofa Regulatory Return. No issues worthy ofbeing reportedwereidentifiedin2015andtheoversightandassistanceprovidedbytheCommission has builtuponthefirmfoundationcreatedthepreviousyearan dhasseenanumberofimprovementsin effective operationandreporting withinthe charitablesector. TheCommissioncontinuestoseekto identifyfurtherareaswhereimprovementscanbeachieved.

Anti-MoneyLaundering/CombatingtheFinancingof Terrorism

TerrestrialCommercialIndustry

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

Themainchangesappli edtogamblingindustryare:

• TheDirectiveextendsthescopebeyondcasinos'tocoverprovidersofgamblingservices'.

• TheDirectiveintroducesthenecessityforMemberStatestocarryoutariskassessmentat nationallevel;theECwillsetminimum factorstobeconsideredintheseassessments.

• 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:

• Competentauthoritiesmustensurethatownersandpersonsdirectingthebusinessare"fit andproper"todoso.

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

ItisstilltooearlytoassessthelevelofimpactthattheFourthDirectivewillhaveinJerseyonthe terrestrialsector. TheJGCExecutivewillworkwithcolleaguesinJerseyGovernmenttoassessthe levelofris kandtheappropriatelevelofcompliance , whichshouldbebalancedandproportionate. TheCommissionisnotyetaSupervisoryBodyunderJerseyProceedsofCrimelegislation,thatrole being undertaken by the Jersey Financial Services Commission. However, recent applications for Schedule 2 Registration have shown that there is a good working relationship between the two regulatorybodiesandthiswillonlydeepenas 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'sinternationalreputation,toensureitslicenseesarefitandproperandto applyanti -moneylaunderinglegislation.

E-gaming

The decisionbytheUKGovernmenttoabandon its "whitelist"systemthat had preventedfirmsin JerseyfrommarketingonlinegamingservicesintotheUKha s effectivelyopenedupthepossibilities ofane -gamingindustrydevelopinghere. Recentactivityatteststo this.

Inlinewithregulatorynorms,i tisnottheJerseyGamblingCommission'splacetopromoteormarket theIslandasajurisdictionforsuchactivity – ourroleisstrictlyaregulatoryone,ensuringthatany suchactivityconductedhereisinlinewi ththelegislationagreedbytheStatesandtheCodesof Practiceinforcehere. TheCommission doesmeetwithinterestedpartiesandpotentialapplicants inordertodiscussregulatoryandlicensingqueriesand2015saw asignificantlevelofinteresta nd inquiriesfromfirmslookingtousetheIslandasabaseforsuchactivity.

SocialResponsibility

One of the key responsibilities of the Commission is in the area of social responsibility. The Commissionseesthisasakeyfunction. Wehavea dutyunderthetermsofthelawto: protect childrenandothervulnerablepersonsfromaddictiontogamblingandfromotherformsofharm associated with gambling; make assistance available to persons who are or may be affected by problems related to exce ssive gambling; and to otherwise avoid and redu ce problems related to gambling'.

Partofthedatarequiredfromlicenseesisanannualreturnstatingthenumbersandchangesinself - exclusions,thatis,peoplewhotaketheinitiativetostopgamblingands ignastatementwithan operator notingtheirdesiretostopgamblingwhichtheoperatoris contractually boundtohonour. Intheterrestrialbookmakingsector132self -exclusionsweremadeacrossthetotalestate,with24 peoplewhohadpreviouslyself -excludedchoosingtoreturntogamblingoncetheperiodoftheirself - exclusion had ended. It is important to recognize that as Jersey has no national self -exclusion system,anindividualhastoself -excludefromeachpremisestheywishtostopgamblingin .The132 self-exclusionsnotedin2015therefore,arelikelytorepresentamuchsmallergroupofpeoplewho haveelectedtoexcludefromanumberofdifferentpremises.

The industry also takes its responsibility to prevent children from gambling very se riously and operatesathink21'systemwherebyanyoneappearingundertheageof21isrequestedtoshow identification.Itisalicensingrequirementthatanyinstancesofunder -agegamblingbereportedto theCommission. Nosuchinstanceswerereport edduringtheperiod,butover6500personswere askedforidentificationandon169occasionsstaffinbettingshopsrecordedaninteraction'witha customertoenquireiftheywereincontrolorneededanyadviceorassistance.

All licensees located in the Island must pay into the dedicated Social Responsibility Fund , with remotelicenseesabletocontributetootherfundsrecognizingtheiroff -Islandcustomerbase .Thisis deemeda moreequitablesystemthanavoluntaryopt -in,andithasguaranteedt hefutureofthe 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, educatio n, information, prevention, treatment, counsellingorothermeasurestosupportvulnerablepeoplefromaddictionandotherformsofharm associated with gambling. Specifically the Fund meets the costs of the www.gamblingtherapy.je websiteaswellaspubli shedmaterialdistributedtopublic -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 department aboutwaysinwhichwecouldworktogethertodeliverbettersupportforcompulsive gamblersandbettereducationtothewidercommunity. Itishopedthat newdevelopmentswillbe forthcoming, but they have to be evidenced and in response to a defined ne ed. The Fund is invaluable,butitcannotbeallowedtogrowwithoutaclearprogrammetodeliver.Tothatendthe Commissionwillmonitorexpenditureandothercallsonthefundandmayconsiderreducingthe amountofindustrycontributionssothatthey moreaccuratelyreflectthelevelofneed.

Atthecloseoftheyear,therewas £48,581 intheFund,upfrom£22,217in2014.

GamblingTherapy

As agreed in 2013 , the Commission utilises the Social Responsibility Fund to support Gambling Therapy (GT) andactivelypromotedtheservicesofferedviatheJerseywebpagethrough postersand leafletsforthisservice .TheseareavailableatallLicencedBettingOfficesandwerealsodistributed

to Parish Hall s,Citizen'sAdviceBureau andtheLibrary. The Jerseydedicatedsitecanbeaccessedvia http://www.gamblingtherapy.je/. Feedbackfrom GamblingTherapyindicatesthatunique hitson thesiteareverylowandtodate,no -onefromJerseyhasactuallyutilis edtheon -linecounselling servicethatitoffers.ThiscouldbebecausethelevelofproblemgamblingintheIslandisverylow and,hopefully,thatisindeedthecase. TheCommissioncannottakethisforgrantedhoweverand willcontinuetorequestevi denceandassessmentfromHealthandSocialServicesaswellastheThird SectorforwaysinwhichhelpcanbebroughttobearforthoseIslandersinneed.

The Commission also gives support and advice when called upon and David Evans gave a presentationto theEmergencyFoodProviderseventattheSalvationArmypremisesinOctoberon availablehelpforproblemgamblers.Itishopedthatthesesortsofeventswillrecur.

FinancialCommentary

Asi n previousyearsand keepingwithitsindependentstatusand recognising thecontinuingpressure onpublicfinances,t heCommissionha s adopted apolicyoffullfinancialself -sufficiency. Financial self-sufficiencyisnotjustaprocessofbalancingthebooksonayearlybasis.Asaregulatorybody, theCommissio nmustbepreparedtorobustlydefenditsactionsandhavetheresourcesavailableto meetforeseenchallenges.Ultimately, inextremis ,it wouldlookto theStatesforsupportwherean issuecouldnotbeforecast,butingeneraltermsthepolicyoftheC ommissionistobuildupareserve capableofmeetingitsobligationsmovingforward.

The Commission receives the majority of its funds from commercial licence fees . Reflecting the policy decision in the new Law, fees and charges for the charitable, socia l and club sector were markedlyreduced from2013onwards . Thereisnopublicfunding.

ThefollowingAccountsprovideanoverviewoftheCommission'sincomeandexpenditurefor201 5 underFRS102,asopposedtotheUKGAAPthatwereusedinthe2014acco unts.Thedifferenceis minor,butitdoesmeanthatthe2014surplusisrestatedas£41,658(underFRS102)comparedto thepublished(UKGAAP)figureof£42,993.ThedescriptionforthechangeisgiveninNote17tothe

accounts.

TheCommissionisplea sedtorepor tthatitendedtheye arwithan operatingsurplusof £37,799,a modest reduction on the previous year , in the main due to the part -time employment of an ExecutiveOfficer . Inlinewithitspolicies,theCommissionreviewsitsfeesandcharges annuallyin lightofitsauditedaccounts.

REVISED AUDITED FINANCIAL STATEMENTS OF JERSEY GAMBLING COMMISSION

FOR THE YEAR ENDED

31 DECEMBER 2015

JERSEYGAMBLINGCOMMISSION FORTHEYEAR ENDED31DECEMBER2015

CONTENTS PAGE Commissioners'report 15 IndependentauditorsreporttotheComptrollerandAuditorGeneral 18 Statementofcomprehensiveincomeandretainedearnings 20 Statementof financialposition 21 Notestothe revised financialstatements 22

COMMISSIONERS' REPORT

Thecommissionerspresenttheir revised reportandthe revised auditedfinancial statementsofthe JerseyGamblingCommissionfortheyearended31December2015.

INCORPORATION TheCommissionwasincorporatedinJerseyundertheGamblingCommission(Jersey)Law2010.

COMMISSIONERS Thecommissionerswhoservedduringtheyearwereas follows:

MrGWhite,OBE

MrPCruickshank

MrJArnold (Resigned30November2015) MsDSebire (Appointed2November2015) MrCWhelan (Appointed2November 2015)

RESULTS ThefinancialstatementsprovideanoverviewoftheCommission'sincomeandexpenditurefor2015. TheCommissionispleasedtoreportasurplusfortheyearof£37,799(2014:£41,658).

GOINGCONCERN

Thecommissionersconsider,giventhe financialconditionoftheCommission,theuseofthegoing concernbasisisappropriateforthecurrentyearandfor12monthsfromthedateofsigningthese accounts.

REGULATIONS

ThisreporthasbeenpreparedinaccordancewithFinancialReportingStand ard102("FRS102")and therequirementsoftheGamblingCommission(Jersey)Law2010.

SOCIALRESPONSIBILITYFUND AccountingfortheSocialResponsibilityFundisgovernedbyArticle10oftheGamblingCommission (Jersey)Law2010andthesefundsarekep tseparatefromthemainCommissionaccounts.Thefundis 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. SpecificallytheFundmeetsthecostsofthewww.gamblingtherapy.jewebsiteaswellas published material distributed to public -facing licensees. The Commission is working with stakeholdersbothwithintheStatesofJerseyandexternallytoassessotheru sesfortheFund.

COMMISSIONERS'RESPONSIBILITIES

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

COMMISSIONERS'REPORT(continued)

COMMISSIONERS'RESPONSIBILITIES(continued)

The Gambling Commission (Jersey) Law 2010 requires the commissioners to prepare financial statementsforeachfinancialyear.Underthatlaw,thecommissionershaveelectedtopreparethe financialstatementsin accordancewithFRS102.Thecommissionersmustnotapprovethefinancial statementsunlesstheyaresatisfiedthattheygiveatrueandfairviewofthestateofaffairsofthe Commissionandofthesurplusordeficitforthatyear.

Inpreparingthese revised financialstatements,thecommissionersarerequiredto:

• selectsuitableaccountingpoliciesandthenapplythemconsistently;

• makejudgementsandestimatesthatarereasonableandprudent;and

• state whether applicable UK Accounting Standards have been followed, subject to any materialdeparturesdisclosedandexplainedintheaccounts;and

• preparethe revised financialstatementsonagoingconcernbasisunlessitisinappropriateto presumethattheCommissionwillcontinueinbusiness.

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

the financialposition ofthe Commission and enable them to ensure thatthe financialstatements complywiththeGamblingCommission(Jersey)Law2010.Theyarealsoresponsibleforsafeguarding theassetsoftheCommissionandhencefortakingreasonablestepsforthepreventionanddetection offraudandotherirregula rities.

Eachofthepersonswhoisacommissioneratthedateofapprovalofthisreportconfirmthat:

• so faraseachcommissionerisaware,thereisno relevantaudit informationofwhichthe Commission'sauditorisunaware ;and

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

REVISONOFFINANCIALSTATEMENTS

Thecommissionershav etheauthoritytorevisetheannualfinancialstatementsandcommissioners' reportiftheydonotcomplywithapplicableFinancialReportingStandardsintheUKandRepublicof IrelandandtherequirementsoftheGamblingCommission(Jersey)Law2010.The revisedfinancial statementsdonottakeaccountofeventswhichhavetakenplaceafterthedateonwhichtheoriginal financial statements were approved. The Regulations req uire that the revised financial statements showatrueandfairviewasifthey werepreparedandapprovedbythecommissionersasatthedate oftheoriginalfinancialstatements.

These revised financial statements replace the original financial statements for t he year ended 31 December 2015 which were approved by the commissioners on 13 July 2016. They are now the statutory financialstatementsofthecommissionforthatfinancialyear.Thefinancialstatementshave beenrevisedasatthedateoftheoriginalf inancialstatementsandnota satthedateofthisrevision. Accordingly they do not deal with events between those dates. The reason for the revision of the financialstatementshasbeendisclosedinnote2pertherevisedfinancialstatements.

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),toappointDeloitteLLPasauditorof theJerseyGamblingCommissionfortheyears ending31December2015to31December2019.

RegisteredOffice: SignedonbehalfoftheCommission TheJerseyGamblingCommission

4thFloor

OspreyHouse

5-7OldStreet ....... StHelier DrJasonLane

JE23RG ChiefExecutive

Approvedon 14th July2017

FORTHEYEARENDED31DECEMBER2015

Wehaveauditedthe revised financialstatementsoftheJerseyGamblingCommissionfortheyearended 31December2015whichcomprisetheStatementofComprehensiveIncome,theStatementofFinancial Positionandtherelat ednotes1to18 .Thefinancial reportingframeworkthathasbeenappliedintheir preparationisFinancialReportingStandard102"FinancialReporting"("FRS102");theFinancialReporting StandardapplicableintheUKandRepublicofIrelandandtherequirementsoftheGambling(Jersey )Law 2010.

These revised financial statements replace the original financial statements approved by the Jersey Gambling Commission on 13 July 2016. The revised financial statements have been prepared under applicablelawandaccordinglydonottakeacco untofeventswhichhavetakenplaceafterthedateon whichtheoriginalfinancialstatementswereapproved.

ThisreportismadesolelytotheCommission'smembers,asabody,inaccordancewithArticle18(4)of theGambling(Jersey)Law2010. Our auditworkhasbeenundertakensothatwemightstatetothe Commission'smembersthosematterswearerequiredtostatetotheminanauditor'sreportandforno otherpurpose. Tothefullestextentpermittedbylaw,wedonotacceptorassumeresponsibi lityto anyoneotherthantheCommissionandtheCommission'smembersasabody,forourauditwork,forthis report,orfortheopinionswehaveformed.

Respectiveresponsibilitiesofcommissionersandauditor

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

Scopeoftheauditofthefinancial statements

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 auditedfinancialstatementsandtoidentifyanyinformation thatisapparentlymateriallyincorrectbased on,ormateriallyinconsistentwith,theknowledgeacquiredbyusinthecourseofperformingtheaudit.

If we become aware of any apparent material misstatements or inconsistencies we consider the implicationsforourreport.

Theauditofrevisedfinancialstatementsincludestheperformanceofprocedurestoassesswhether the revisionsmadebythecommissionersareappropriateandhavebeenproperlymade.

INDEPENDENTAUDITOR'SREPORTTOTHECOMPTROLLERANDAUDITORGENERAL

Opiniononfinancialstatements Inouropiniontherevisedfinancialstatements:

• give a true and fair view, seen as at the date the original financial statements were approved,ofthe state ofthe Commission's affairs as at31 December 2015 and ofits profitfortheyearthenended;

• havebeenproperlypreparedinaccordancewithUnitedKingdomGenerallyAccepted AccountingPractice seenasatthedatetheoriginalfinancialstatementswereapproved;

and

• havebeenproperlypreparedinaccordancewiththerequirementsoftheGambling (Jersey)Law2010.

Emphasis ofmatter – revisionoffinancialstatements

Informingour opiniononthe revisedfinancial statements, whichisnotmodified,wehaveconsidered theadequacyofthe disclosures madeinnote2totheserevisedfinancial statementsconcerningthe needto revise thefinancialstatements.The originalfinancial statementswereapprovedon13July2016 and ourpreviousreportwassignedonthatdate. We havenotperformedasubsequentevents review fortheperiodfromthedateofourpreviousreporttothedateofthisreport.

GregoryBranch forandonbehalfof DeloitteLLP CharteredAccountants

Jersey

Date: 14th July 2017

JERSEYGAMBLINGCOMMISSION FORTHEYEARENDED31DECEMBER2015

STATEMENTOFCOMPREHENSIVEINCOMEANDRETAINED EARNINGS

Notes TURNOVER 5

GROSSSURPLUS

EXPENSES Administrativeexpenses

SURPLUSONORDINARYACTIVITESBEFOREINTERESTAND TAXATION

Interestreceivableandsimilarincome SURPLUSONORDINARYACTIVITESBEFORETAXATION 7 TAXATION 8

SURPLUSFORTHEFINANCIALYEARANDTOTAL COMPREHENSIVEINCOME

RETAINEDSURPLUSAT1JANUARY RETAINEDSURPLUSAT31DECEMBER

2015 2014

£ £

531,803 499,412 531,803 499,412

494,951 458,312 36,852 41,100 947 558 37,799 41,658

- -

37,799 41,658 227,562 185,904 265,361 227,562

The Commission'sturnover andexpensesallrelatetocontinuingoperations. Therearenorecognisedgainsorlossesotherthanthoseshownabove.

JERSEYGAMBLINGCOMMISSION ASAT31DECEMBER2015

STATEMENTOFFINANCIALPOSITION

FIXEDASSETS

Property,plant andequipment

CURRENTASSETS Tradeandotherreceivables Cashandcashequivalents

CREDITORS:AMOUNTSFALLINGDUEWITHINONEYEAR Trade andotherpayables

Notes 2015 2014

£ £

9 6,028 11,368

10 494,157 24,032 11 321,482 401,600 815,639 425,632

12 507,725 187,221 507,725 187,221

NETCURRENTASSETS 307,914 238,411 TOTALASSETSLESSCURRENTLIABILITIES 313,942 249,779 NETASSETS 313,942 249,779

ACCUMULATED RESERVES

SocialResponsibilityFund 13 48,581 22,217 IncomeandExpenditureAccount 265,361 227,562

313,942 249,779

The financial statements on pages 20 to 29 have been prepared in accordance with the Gambling Commission(Jersey)Law2010andFinancialReportingStandard102(1A)applicabletosmallentities.

Theaccountswereapprovedandauthorisedforissueon 14th July2017 bytheJerseyGambling Commission andsignedonitsbehalfby:

DrJasonLane ChiefExecutive

JERSEYGAMBLING COMMISSION FORTHEYEARENDED31DECEMBER2015

NOTESTOTHEFINANCIALSTATEMENTS

1 GeneralInformation TheJerseyGamblingCommission(the"Commission")wascreatedbytheGamblingCommission(Jersey)Law2010and isresponsibleforthelicensing,registrationandregulationofgamblingintheIslandof Jersey.Thislawtransferredall responsibilitiesforlicensing,registrationandregulationofgamblingprescribedasthedutyoftheMinister,theformer LicensingAssemblyorotherStatesbodiestothisnewAuthority.TheCommissionisabodycorporate anditsregistered officeis2ndFloor,SalisburyHouse,1 -9UnionStreet,StHelier,Jersey,JE23RF.

2 Revisionoffinancialstatement

Theserevised financialstatementsreplacetheoriginalfinancialstatementsfort heyearended31December2015 whichwereapprovedbythe commissioners'on 13July2016.Theyarenow thestatutory financialstatementsofthe commissionforthatfinancialyear.Thefinancialstatementshavebeenrevisedasatthedateoftheoriginalfinancial statementsandnotas atthedateofthisrevision.Accordinglytheydonotdealwitheventsbetweenthosedates.

TheoriginalfinancialstatementsdidnotcomplywithFinancialReportingStandardsin theUKandRepublicofIreland andtherequirementsoftheGamblingCommission(Jersey)Law2010inthefollowing respect. Theamountrelatingto tradeandotherpayablesonthestatementoffinancialpositionandrelated noteswereincorrectlystated.T heeffectof therevisionistoincludethecorrectfigurefortradeandotherpayableswhichreducesthenetassetsby£477,330. Thereisnoeffectonthestatementofcomprehensiveincome.

Arevisedauditor'sreportisincludedintheserevised financialstatements.

Thecommissioners'haveauthoritytoreviseannualfinancialstatementsorthecommissioners'reportiftheydonot complywiththeapplicablereportinglawsandaccountingstandards.Therevisedfinancialstatementsandreporthave beenamendedanddonottakeaccountofeventswhichhavetakenplaceafterthedate onwhichthe originalfinancial statementswereapproved.TheRegulationsrequirethattherevised financialstatementsshowatrueandfairviewas iftheywereprepared andapprovedbythecommissionersasatthedateoftheoriginalfinancialstatements.

3 Statementofcompliance

The revised financial statements have been prepared in compliance with United Kingdom Accounting Standards, includingthefinancial reportingstandardapplicabletotheUnitedKingdomandtheRepublicofIreland("FRS102") andtheGamblingCommission(Jersey)Law2010.Thisisthefirstsetoffinancialstatementspreparedincompliance withFRS102andthedateoftransitiontoFRS1 02wasthe1January2014.Therewerenomaterialdeparturesfrom thisstandard.

4 Summaryofsignificantaccountingpolicies Theprincipleaccountingpoliciesappliedinthepreparationofthesefinancialstatementsaresetoutbelow.These policieshavebeenconsistentlyappliedtoallyearspresented,unlessotherwisestated.Detailsofthetransitionto FRS 102aredisclosed innote18 .

TransitiontoFRS102 Priorto1January2015,theCommissionprepareditsfinancialstatementsunderpreviouslyextantUnitedKingdom Accounting Standards.From1January2014,theCommissionhaselectedtopresentitsannualfinancialstatementsin accordancewithFRS102.

(i)Accountingestimates

InaccordancewithFRS102,asafirst -timeadopter,theCommissiondidnotreviseany estimates on transitionto reflectnewinformationsubsequenttotheoriginalestimates.

(ii)StatementofComprehensiveIncomeandChangesinEquity

Section6.4ofFRS102permitsthe CommissiontopresentanIncomeStatementandRetainedEarningsinplaceofa Statement of Comprehensive Income and a Statement of Changes in Equity as the only movements during the periodsreportedarisefrommovements inprofitandloss.

Basisofaccounting

The revised financial statements have been prepared on the going concern basis, under the historical cost convention.TheCommissionhasappliedthesmallentitiesregimeunderFRS102(1A), whichallowsqualifyingentities certaindisclosureexemptions.TheCommissionhastakenadvantageoftheexemptionfrompreparingastatementof cashflows.

Accountingestimates

The preparation of revised financialstatements requires the use ofcertain accounting estimates.Italso requires managementtoexerciseitsjudgementintheprocessofapplyingaccountingpolicies.Accountingestimatesinvolve management'sjudgmentofexpectedfuturebenefitsandobligationsrelatingtoassetsandliabilities( andassociated expensesandincome)basedoninformationthatbestreflectstheconditionsandcircumstancesthatexistatthe reporting date. There have been no changes to the accounting estimates from the previous financial year. In accordancewithFRS1 02,asafirst -timeadopter,theCommissiondidnotreviseanyestimatesontransitiontoreflect newinformationsubsequenttotheoriginalestimates.

Goingconcern

TheCommissionmeetsitsday -to-dayworkingcapitalrequirementsthrough itsbankfacilities.Afterreviewingthe Commission'sforecastsandprojections,thecommissionershaveareasonableexpectationthattheCommissionhas adequateresourcestocontinueinoperationalexistencefortheforeseeablefuture.Thecommissionersc onsider, giventhefinancialconditionoftheCommission,theuseofthegoingconcernbasisisappropriateforthecurrentyear andfor12monthsfromthedateofsigningtheseaccounts.

Revenuerecognition

Revenueisrecognisedtothe extentthattheCommissionobtainstherighttoconsiderationinexchangeforservices rendered.Revenuecomprisesthefairvalueofconsiderationreceivedandreceivableafterdiscounts.

Licencefees UnderthetermsofGambling(Jersey)Law2012andsubordinatelegislation,licencesgrantedbytheCommissionare validforuptofiveyears.Non -refundablelicencefeesarepayableonissueofthelicenceandateachanniversaryof itsissue.Non -refundablelicencefeesareinitiallyrecordedasdeferredincomeandreleasedovertheperiodofthe licence as the commissioners believe that this treatment matches the income generated in the period with the associatedexpenditure.

Socialpermitsandregistrations Incomefromthesepermitsandregistrationsisrecognisedwhenthepermitisissued.

Expenses Expensesareaccountedforonanaccrualsbasis.

Pensioncosts

StaffinitiallyemployedbytheStatesofJerseybefore3September2010ofwhichtherearetwoaremembersofthe Public Employees Contributory Retirement Scheme ("PECRS") which, whilst a final salary scheme, is not a conventionaldefinedbenefitschemebecausetheemployerisnotnecessarilyresponsibleformeetinganyon -going deficit in the scheme. The assets are held separately from those of the States of Jersey. Contribution rates are determinedbyanindependentq ualifiedactuarysoastospreadthecostsofprovidingbenefitsoverthemembers' expectedservicelives.

Because the Commission is unable to readily identify its share of underlying assets and liabilities of PERCRS, contributionstotheschemehave beenaccountedforasiftheyarecontributionstoadefinedcontributionschemeat arateof13.6%(201413.6%).Thisrateistheexpectedtocont inuetobepayableduring2016.

Actuarial valuations are performed on a triennial basis; the most recently published was the PECRS Actuarial Valuationfor31December2013on13March2015.Themainpurposesofthevaluationsaretoreviewtheoperation ofthescheme,toreportonitsfinancialcondition,andtoconfirmtheadequacyofthecontributionstosupp ortthe schemebenefits.

Copiesofthelatestannualaccountsofthescheme,andStatesofJersey,maybeobtainedfromtheStatesTreasury, CyrilLeMarquandHouse,TheParade,St . Helier,JE48UL.

Property,plantand equipment

Property,plantandequipmentarerecordedathistoricalcostordeemedcost,lessaccumulateddepreciationand impairmentlosses.Costincludestheoriginalpurchasepriceandcostsdirectlyattributabletobringingtheassettoits workingconditionforitsintendeduse.

Repairsandmaintenancecostsareexpensedasincurred.

Fullydepreciatedproperty,plant&equipmentareretainedinthecostof property,plant&equipmentandrelated accumulated depreciation until they are removed from service. In the case of disposals, assets and related depreciationareremovedfromthefinancialstatementsandthenetamount,lessproceedsfromdisposal,ischarged orcreditedtotheprofitandlossaccount.

Depreciation

Depreciationiscalculatedonstraight -linebasistoallocatethedepreciableamountontheassetsovertheirestimated usefuleconomiclivesasfollows:

Websitecosts Overanestimatedusefullifeof3 years Computerequipment Overanestimatedusefullifeof3years

TheCommission'spolicyistoreviewtheremainingusefuleconomiclivesandresidualvaluesof property,plantand equipment on an o ngoing basis and to adjust the depreciation charge to reflect the remaining estimated useful economiclifeandresidualvalue.

Financialinstruments

TheCommissionhaschosentoadoptSections 11ofFRS102inrespectoffinancialinstruments.

(i)FinancialAssets

Basicfinancialassets,includingtradeandotherreceivablesandcashandbankbalancesareinitiallyrecognisedat transactionprice,unlessthearrangement constitutesafinancingtransaction,wherethetransactionismeasuredat thepresentvalueofthefuturereceiptsdiscountedatamarketrateofinterest.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled,or(b)substantiallyalltherisksandrewardsoftheownershipoftheassetaretransferredtoanotherpartyor (c)despitehavingretainedsomesignificantrisksandrewardsofownership,controloftheassethasbeentransferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposingadditionalrestrictions.

(ii)Financialliabilities

Basicfinancialliabilities,includingtradeandotherpayablesare initiallyrecognisedattransactionprice,unlessthe arrangementconstitutesafinancingtransaction,wherethedebtinstrumentismeasuredatthepresentvalueofthe futurereceiptsdiscountedatamarketrateofinterest.

Tradepayables areobligationstopayforgoodsorservicesthathavebeenacquiredintheordinarycourseofbusiness fromsuppliers.Accountspayableareclassifiedascurrentliabilitiesifpaymentisduewithinoneyearorless.Ifnot, they are presented as non -current liabilities. Trade payab les are recognised initially at transaction price and subsequentlymeasuredatamortisedcostusingtheeffectiveinterestmethod.

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

Cashandcashequivalents

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

Provisions

ProvisionsarerecognisedwhentheCommissionhasapresentlegalorconstructiveobligationasaresultofpast events;itisprobablethatanoutflowofresourceswillberequiredtosettletheobligation;and theamountofthe obligationcanbeestimatedreliably.

Contingencies Contingentliabilities,arisingasaresultofpastevents,aredisclosedwhenitispossiblethattherewillbeanoutflow ofresourcesbuttheamountcannotbereliablymeasuredatthereportingdate.Contingentliabilitiesaredisclosedin the revised financialstatementsunlesstheprobabilityofanoutflowisremote.

Contingentassetsaredisclosedinthe revised financialstatementsbutnotrecognisedwhereaninflowofeconomic benefitsisprobable.

5. Analysisofturnoverbycategory 2015 2014

£ £

Licencefees 527,133 494,818 Socialpermits 600 600 Social registrations 1,520 1,420 Softwaredesignerspermits 1,250 1,250 Otherincome 1,300 1,324

531,803 499,412

6. Payrollcosts 2015 2014

£ £

Staffsalaries 275,093 256,074 Commissioners'fees 75,500 72,000 Employerpensioncontributions 20,129 22,847

370,722 350,921 2015 2014

Numberofpermanentstaffemployedduringtheyear 5 4

7. Surplusforthefinancialyear

Surplusforthefinancialyearisstatedaftercharging: 2015 2014

£ £

Auditorsremuneration 7,500 6,150 Depreciation 6,007 5,981

13,507 12,131

8. Taxation Article17oftheGamblingCommission(Jersey)Law2010providesthattheincomeoftheCommissionshallnotbe liabletoincometaxundertheIncomeTax(Jersey)Law1961.TheCommissionisregisteredforGoodsand Services Tax (GST) under The Goods and Services Tax (Jersey) Law 2007. At the year ended 31 December 2015 the Commissionwasduearepaymentof£966.

9. Property,plantand equipment

Website Computer

Costs Equipment Total

£ £ £

Cost

Balancebroughtforward 8,238 19,406 27,644 Additions - 667 667 Balancecarriedforward 8,238 20,073 28,311

Depreciation

Balancebroughtforward 5,524 10,752 16,276 Chargefortheyear 1,018 4,989 6,007 Balancecarriedforward 6,542 15,741 22,283

Netbookvalue

Balancecarriedforward 1,696 4,332 6,028

Balancebroughtforward 2,714 8,654 11,368 10 Tradeandotherreceivables 2015 2014

£ £

Licencefeesreceivable 485,338 15,700 Otherdebtors 8,819 8,332

494,157 24,032

Alldebtorsarerepayablewithinoneyear. 11 Cashandcashequivalents

The cash includes £32,832 (2014: £22,217) relating to the Social Responsibility Fund. The use of the Social ResponsibilityFundisrestrictedbyArticle10oftheGamblingCommission(Jersey)Law2010.

12 Tradeandotherpayables 2015 2014

£ £

Amountsdueinlessthanoneyear: Licencefeesbilledinadvance

477,330 165,463 Othercreditorsandaccruals 30,395 21,758

507,725 187,221

13 SocialResponsibilityFund

TocomplywithArticle10(1)oftheGamblingCommission(Jersey)Law2010,theCommissionaccountsfortheSocial ResponsibilityFundseparatelyfromitsgeneralfunds.

2015 2014

£ £

Balancebrought forward 22,217 2,209 Amountsbilled 29,364 21,475 Amountsused (3,000) (1,467)

Balancecarriedforward 48,581 22,217 14 Relatedpartytransactions

DuringtheyearsalariespaidtotheCommissionerstotalled£75,500(2014:£72,000).TheCommissionersdidnot receive any other benefits for services rendered in the current or prior year. No other transactions with related partieswereundertakensuchasarerequiredtobedisclosedunderUnitedKingdomGenerallyAcceptedAccounting Principles,includingFRS102andtheGamblingCommission(Jersey)Law 2010.

15 Leases

Onthe1January2013,theCommissionenteredintoaleaseagreementinrespectofitsofficesatSalisburyHouseat arateof£12,000perannumuntilJune2016.

TheCommission paysallpropertyrelatedexpenses. 16 Ultimatecontrollingparty

TheJerseyGamblingCommissionisacorporatebodywithoutsharecapital.ItisindependentoftheStatesofJersey andasaresultthereisnoultimate controllingparty.

17 Eventsafterthestatementoffinancialpositiondate

Noeventsoccurredafterthebalancesheetdatewhicharerequiredtobedisclosedbytheentity.

18 TransitiontoFRS102

ThisisthefirstyearthattheCommissionhavepresentedtheirresultsunderFRS102.Thelastfinancialstatements preparedunderthepreviousUKGAAPwerefortheyearended31December2014.ThedateoftransitiontoFRS102 was therefore1January2014.Setoutbelowarethechangesinaccountingpolicieswhichreconcileprofitfortheyear ended31December2014andthetotalequityasat1January2014and31December2014betweenUKGAAPas previouslyreportedandFRS102.

At1January At31 2014 December

2014

Reconciliationofequity £ £ EquityreportedunderpreviousUKGAAP 185,904 251,114 Adjustmentstoequity ontransitiontoFRS102

HolidayPayAccrual Notea - (1,335) Equity reportedunderFRS102 185,904 249,779

Reconciliationofstatementofcomprehensiveincomefor2014

£

ProfitforthefinancialyearunderpreviousUKGAAP 42,993 HolidayPay Accrual Notea (1,335) ProfitforthefinancialyearunderFRS102 41,658

Notea:Holidaypayaccrual

FRS 102 requires shortterm employee benefits to be charged to the profitand loss accountas the employeeserviceisreceived.ThishasresultedintheCommissionrecognisingaliabilityforholidaypay of £1,335 on transition to FRS 102. Previously holiday pay accruals were not recognised and were chargedtotheincomeandexpenditureaccountasthey werepaid.Intheyearto31December2014,an additionalchargeof£1,335wasrecognisedintheincomeandexpenditureaccountandtheliabilityat 31December2014was£1,335.

Therehavebeennootherchangeseffectedbythetransitionto FRS102.