Live Dealer Casino's Licensing Moves Forward

March 02, 2009 | News Category: Gaming Law

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A major difficulty for any form of online gambling is acquiring acceptable licensing. While any casino can set themselves up on the Internet, only with a credible license will they have access to the world's financial networks, allowing them to handle eCommerce in an effective way.

One of the most respected licensing jurisdictions is the Isle of Man, a quasi-independent member of the British Commonwealth that caters to financial connections and the offshore banking industry in general. Because of the Isle of Man's thorough certification processes and procedures, and its stringent regulations and restrictions, the Isle of Man license is well thought of and highly trusted. But those processes work best with familiar business models, and the concept of online live dealer gaming is a new one, offering challenges to the Isle of Man regulatory agencies in how to address the new format.

With the awarding of a license to Celton Manx, a subsidiary of SBObet, to operate a live dealer casino under the Isle of Man jurisdiction, the island's regulators have shown themselves up to the challenge. This license was even more problematic for the regulators in that the Isle of Man venue is meant to act as a through channel for the dealers; rumors are that the dealers will be physically based in the Philippines, although the license allows them to be anywhere outside of Man. Still, the regulators were able to adapt to the new situation.

The gaming itself will be operated through various UK and European web sites, so that the Isle of Man jurisdiction is really a virtual construction more than a physical one. Celton Manx expects to have the live dealer system up and running in the coming months - "by the second quarter" reads their announcement. Because of the restrictions against gambling on the Isle of Man itself, the dealers will be "piped in" from elsewhere over the Internet, then distributed back out from the Isle of Man to those gaming sites offering live dealer gaming, and from there onwards to the players' computer screens. According to a Celton Manx spokesperson, the system is already undergoing development and implementation, facilitating the near-term deployment.

With the approval, it is expected that other live dealer gaming ventures will also soon be able to win the prestigious Isle of Man license. It should then be only a matter of time before other jurisdictions also start offering live dealer casino licensing.