e-Gaming

The Isle of Man - the Preferred Location for e-Gaming

The e-Gaming sector has experienced incredible growth in recent years, especially in the Isle of Man, and most industry observers maintain it will continue to enjoy a prolonged period of sustained expansion.

The internet, the sector's principal driver, transcends geographical boundaries which ensures that e-Gaming customers can access websites from almost anywhere in the world. As broadband services become more widespread, e-Gaming operations look set to increase their worldwide appeal.

The Isle of Man justifiably boasts one of the most reputable e-Commerce jurisdictions anywhere in the world. This is as a result of its outstanding telecommunications infrastructure and unique collection of economic incentives. These have made the Isle of Man the preferred location for a host of e-Gaming businesses seeking to combine tax-efficiency with access to unsurpassed technical and network expertise. Examples of the Island's technical proficiency include launching Europe's first operational 3G mobile network in 2002 and three years later introduced the world's first commercial HSDPA 3.5G service.

It is also home to Europe's first secure e-Government Multi Protocol Label Switching (MPLS) network.

Important Decisions
When deciding which jurisdiction in which to set up an e-Gaming business the operator has many factors to consider. When all of these factors are tabled it quickly becomes apparent that the Isle of Man is the first choice jurisdiction for setting up business.

In 2007 the Island was placed on the UK's e-Gaming ‘White List'. In order to be placed on the White List, jurisdictions have to be able to demonstrate that they have a satisfactory regulatory regime in place, the licensing and regulatory objectives of which broadly achieve the objectives under which the UK gambling regime operates.

Undertaking e-Gaming business in any jurisdiction also requires a pool of advisers and service providers and the Island is a Tier 1 jurisdiction providing professional expertise in legal and accounting matters, internet service providers, web designers, software developers, disaster recovery centres, e-Payment service providers and accountants.

The Island's ICT infrastructure is world-class with leading-edge fixed and mobile telecoms networks, numerous disaster recovery and hosting facilities and highly-resilient bandwidth connectivity.

Find out more about the benefits of the Isle of Man here>>

Managing with Equiom
The Isle of Man's renowned political and economic stability and progressive approach to international business makes it an ideal jurisdiction for managing an e-Gaming business. The Island's authorities have created an attractive trading environment within which business may be conducted efficiently and with the minimum of bureaucracy.

There is minimal income tax (with tax capped at £100,000 per individual per annum), zero rate corporation tax, no capital gains tax, inheritance tax or stamp duty.

Equiom operates at the very heart of this unique jurisdiction. We have considerable experience of advising, setting up and managing e-Gaming companies. Our legal team also works closely with Government in the promotion and marketing of this complex industry.

By choosing the Isle of Man as a location, and Equiom as their business partner, the operator will have provided himself with an extra ace for his business.

Find out more about our services here>>

Barry Smith, Equiom's Legal Director and e-Gaming specialist will be at EiG Expo in Copenhagen.
Find out more>>>

Make an apointment to meet with Barry>>

MORE INFORMATION
Our Services
Benefits of the Isle of Man
Obtaining a licence
The UK e-Gaming White List

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NEWS FEATURE

Isle of Man Leading the e-Gaming Revolution

Garth Kimber, the Department of Trade and Industry's head of e-Gaming development, gives an overview of the current state industry in the isle of Man.

The e-gaming sector has been in existence for eight years and has made quite an impact on the Isle of Man's economy. Despite the current economic downturn the sector has grown by 30 per cent over the last year with a 50% increase in companies now holding licences to operate in the Island. In total there are currently 16 licence holders.

The sector has also created in excess of 460 top quality jobs (as of December 2008) and is estimated to grow by another 100 during 2009. This growth is from companies new to the Island as well as organic growth in companies already based on the Isle of Man and servicing the sector. For example a number of new posts are being created in the hosting centres and corporate service providers.

Many of these roles also require similar skills to those prevalent in other sectors; 47% of current jobs in the sector are in the areas of finance or administration for example so there is a good overlap with the current skills available on-Island, enabling incoming companies to source their workforce locally.

The total spend by the industry (excluding capital spend) in the Isle of Man in 2008 was £91 million, which is estimated to increase to £118 million this year. The industry collected taxes equalling £5.1 million in 2008, rising to a forecast £6.2 million this year.

And there are other benefits from the e-Gaming boom.

To develop an industry we also need to attract the supporting specialist businesses that the licensed operators rely upon. The Island has been successful in attracting a number of interrelated companies and some big industry names such as the software providers Microgaming and Playtech plus leading data centres have been essential in building a cluster of supporting services.

This clustering effect strengthens the Isle of Man's offering and helps achieve the overall goal of developing a long term sustainable sector which is employment based, not merely a number of fee paying brass plaques.

The data centres and three telecoms operators have also raised local tech capabilities while lowering costs (e.g. for bandwidth). One of the main attractions of the Island to e-Gaming companies is the comfort offered by our resilient IT and telecoms infrastructure. The speed and reliability of connectivity offered affords gaming operators a level of comfort which is difficult to find elsewhere and is resulting in a number of large companies basing their disaster recovery services here.

The above strategy, to which the government remain committed, has led to approaches from a broader range of businesses, including payment processing companies, network gaming companies, and betting exchanges. We have successfully instigated a real change in perceptions, and the e-Gaming industry is sitting up and taking notice of the Isle of Man as working to provide an ideal climate for businesses to realise their potential.

According to Global Betting and Gaming Consultants, a leading consultancy in the gaming industry and a Manx company, the general outlook for the industry remains strong.

It estimates the global interactive gambling market to be worth US$20.3 billion in 2008 (measured by the amount the customers lost). This is estimated to rise to US$ 29.1 billion by 2012.

This highlights that there is a great deal of potential for the e-gaming sector in the Island in the future. The DTI continues to work closely with the Gambling Supervision Commission and the private sector to ensure that the Island meets the challenges of this fast-moving industry.

We believe we can continue to grow and further welcome employment opportunities.

From Isle of Man Today 21st July 2009