Circular No. 12 of 2025 - Junket and Tournament Events

Circular No. 12 of 2025
Date: 28th October 2025
JUNKET AND TOURNAMENT EVENTS
The Financial Services Authority (FSA) would like to draw the attention of all its licensed entities under the Seychelles Gambling Act, 2014 (SGA), that pursuant to the current Seychelles Gambling Act, 2014 a junket or tournament event shall fall under the definition of “gambling or gamble” which means the playing of any gambling game, betting or wagering on any lawful event, excluding a sporting event. Current Situation The FSA has received several requests from the Gambling Industry regarding the hosting of junket or tournament events involving gambling games, betting or wagering. Presently, these activities are not expressly stated under the SGA, whether it is licensable, permissible or not. Nevertheless, despite the former, the FSA has permitted such activities to be undertaken. However, given the emerging risks with such activities, the FSA has deemed it necessary to provide clarity on the treatment of these events. Interpretation by the FSA The FSA is of the view that by nature and characteristics of Junket or tournament events involving gambling games, betting or wagering, it falls within the ambit of “gambling and or gamble” for the following reasons:-

1. Junkets or tournaments typically involve players wagering money or something of value on games
   of chance or skill, which inherently includes the risk of losing or winning.
2. Participants in a junket or tournaments place bets or stakes, which is a core component of
   gambling. The money put forward is contingent on the result of the game or event or tournament.
3. Junket participants stand to either gain or lose money based on the outcome, aligning with the
   definition of gambling as risking monies for potential profit.
4. Junkets usually revolve around games that involve some combination of chance and skill, fitting
   the common legal and practical definitions of gambling activities.

Determination by the FSA
Based on interpretation of the FSA, it has taken the decision to put in place a framework to permit junket and tournament events at licensed casino only, subject to strict compliance with the conditions and requirements as outlined below. Conditions and Requirements Licensed casino seeking to host junket or tournament events must adhere to the following:

1. Application to host junket or tournament events shall be made to the FSA within four (4) weeks
   before the start date of the event. Any application submitted in less than four (4) weeks will not be entertained by the FSA.
2. The application for the event shall include:
   a. Cover letter addressed to the Chief Executive Officer (CEO) of the FSA on details of the program/event proposal (venue, duration of the junket or tournament event with dates, name of organizer, format, expected participants); b. Credit/commission structure for junket or tournament event;
   c. AML/CFT Risk Assessment of the junket or tournament event;
   d. Operational Risk Assessment of the junket or tournament event e. List of all the participants and dealers; f. Identification documents of the event organiser/coordinator, all participants and dealers (i.e. passport copy, proof of address and source of funds); g. Customer Due Diligence (CDD) measures undertaken on each of the participant, dealers, junket organizer(s)/coordinator(s) such as world check or its equivalent including independent checks carried out for sanctions screening; h. Gainful Occupation Permits for the dealers;
   i. Details on the event coordinator and organizers (including a copy of the signed contract);
   j. Bank Statements of the junket organizer(s)/coordinator(s); k. Completed checklist enclosed herewith as per the application form.
3. All applications should be submitted to the Authority.
   Expectations of the FSA
   The FSA would like to emphasize the importance of adherence to the above requirements whereby only licensed casinos with an approval from the FSA shall be permitted to organize Junket and Tournament event. Any event outside the former shall be subjected to enforcement actions. As the non-bank financial services regulator and the AML/CFT supervisor of reporting entities under its regulatory purview, the FSA plays an essential role to maintain the good repute of the Seychelles by preventing the misuse of the jurisdiction for illicit purposes, given the high risk that Junket events and tournaments events involving gambling games, betting or wagering present. Financial Services Authority