Regulatory Enforcement Policy

The Authority may take regulatory action where a License, applicant, key person or other regulated party fails to comply with applicable law, license conditions, regulatory standards, directions or reporting obligations.

The purpose of enforcement is to protect players and the public, maintain confidence in the licensing framework, correct non compliance and deter future breaches.

Enforcement decisions will be proportionate to the circumstances and made within the powers available to the Eritrean Gaming commission.

Enforcement Principles

The Authority will ordinarily apply the following principles:

Proportionality

The regulatory response should reflect the seriousness, duration, impact and risk of the breach.

Consistency

Comparable matters should be treated consistently while recognising relevant differences between cases.

Procedural Fairness

Except where urgent interim action is required, the affected party should ordinarily be informed of the concerns and given a reasonable opportunity to respond.

Accountability

Material decisions should be documented and supported by the available evidence.

Public Protection

The protection of players, legitimate businesses and the integrity of the regulatory framework is the primary consideration.

Grounds for Enforcement

Enforcement action may be considered where there is evidence of:

Breach of a license condition
Breach of a regulatory standard or direction
False, misleading or incomplete information
Failure to disclose a material change
Failure to maintain AML/CTF controls
Unfair treatment of players
Failure to pay legitimate withdrawals
Misuse of player funds
Inadequate responsible gaming measures
Misleading advertising
Operation through an unapproved domain

Misuse of the official license seal
Failure to submit regulatory reports
Failure to cooperate with supervision
Obstruction of an investigation
Serious technical or security failures
Loss of financial viability
Loss of fitness and propriety
Unauthorised transfer or change of control
Conduct creating material legal or reputational risk
Criminal, fraudulent or dishonest activity

Assessment Factors

When determining the appropriate response, the Authority may consider:

The seriousness of the breach
Whether the breach was deliberate, reckless or accidental
The number of players affected
The financial value involved
Actual or potential consumer harm
The duration and frequency of the conduct
Whether senior management was involved

The adequacy of internal controls
Previous compliance history
Whether the matter was self reported
The speed and effectiveness of remediation
Cooperation with the Authority
Any financial benefit obtained
The need for deterrence

Regulatory Measures

Subject to applicable law and the license conditions, available measures may include:

Informal Regulatory Engagement

Used for minor matters that can be corrected promptly and do not present a material risk.

Formal Warning

A written notice identifying the breach and the Authority’s expectations.

Compliance Direction

A binding or formal direction requiring specified corrective action within a defined period.

Corrective Action Plan

A requirement for the License to prepare, implement and report against a remediation programme.

Additional License Conditions

Conditions may be imposed to restrict activities, require additional controls or increase regulatory reporting.

Independent Review

The License may be required to appoint an approved independent expert to assess compliance or verify remediation.

Restriction of Licensed Activities

The Authority may restrict products, payment methods, domains, markets or other activities where necessary.

Suspension

A license may be suspended in whole or in part where continued operation presents an unacceptable risk or while a serious matter is investigated.

Revocation

A license may be revoked where the breach is sufficiently serious, the License is no longer suitable or effective remediation is not reasonably achievable.

Refusal to Renew

The Authority may decline to renew a license where continuing authorisation is not considered appropriate.

Referral

Suspected unlawful activity may be referred to another, regulatory or law enforcement authority.

Immediate and Interim Action

The Authority may take interim action without completing the ordinary enforcement process where immediate intervention is reasonably necessary to:

Protect player funds
Prevent further consumer harm
Preserve evidence
Prevent unlawful activity
Address a serious cybersecurity incident
Restrict an unauthorised change of control
Prevent misuse of the license or license seal
Protect the reputation and integrity of the licensing framework

Interim measures do not determine the final outcome of the matter.

Enforcement Procedure

Except where urgent action is required, the process may include:

Identification or reporting of a potential breach
Preliminary assessment
Request for information
Notice of regulatory concerns
Opportunity for the regulated party to respond
Review of evidence and representations
Regulatory decision
Notification of the outcome
Monitoring of any required remediation
Publication where appropriate

The Authority may vary the procedure according to the circumstances and seriousness of the matter.

Publication of Enforcement Outcomes

The Authority may publish material enforcement outcomes where publication is lawful, proportionate and in the public interest.

A notice may identify:

The Authority may withhold confidential, personal or security sensitive information.

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Important

The Authority’s enforcement role relates to regulatory compliance. It does not replace criminal, civil or commercial proceedings that may be available before a court, tribunal or the Eritrean Gaming commission.