Interview with Garth Kimber - e Gaming expert in the Isle of Man
By: Liz Corlett
30 September 2008
How does the Island rate alongside other jurisdictions which support e gaming business?
We’re in third position behind Malta and Alderney. In the five years since Malta’s e-gaming business took off, it has gone from representing 0% of their economy to 12%. That’s the potential of the industry. In Malta, however, it can take up to nine months for a company to obtain a licence, a process which can cost hundreds of thousands of pounds.
Here, however, applications can be processed more quickly; for instance, the Isle of Man Gambling Supervision Commission can address people’s proposals within ten weeks.
How would you describe the health of e gaming businesses on the Isle of Man at present?
At present, we have 12 licenceholders, 8 applications under review, 15 in preparation and over 30 more under discussion.
Generally speaking, start-up businesses have found that growth is slow for the first six months but then picks up speed rapidly; it is common to experience 30% growth per annum, on average.
In the last twelve months, there have been big advances in the industry here for two main reasons: the Isle of Man has been actively promoted in the right direction - previously, the marketing focus was heavily sportsbook-orientated - and has been placed on the UK’s White List (which allows companies licensed in the Isle of Man to market in the UK).
What is the role of the Isle of Man Government’s e gaming division in relation to e gaming companies?
We are here to promote growth in three ways: by encouraging companies to come here in the first place; by helping those already established here to flourish; and to advise on changing regulations and their impact on the industry. We use every forum of opportunity to put out the message that we are willing to work with businesses and overall, our remit is to deliver on our stated aims.
In your opinion, what are the challenges facing the e gaming industry in the future?
There are three main strengths on which we need to focus, going forward. These are: to channel time, effort and resources into understanding and working with start-up businesses; to deliver on our promise of an smooth, efficient start-up process; and to prove that we can work alongside other jurisdictions all over the world.
Our biggest challenge for the future is the changing shape of market in Europe. Should the EU implement a system whereby it becomes mandatory for e gaming corporates to be based in the country, which is a possibility, then we will have to convince Europe of our ‘usefulness’.
How well-placed is the Isle of Man to face those challenges?
We have an extremely well-regulated environment and a wealth of experience in an industry which, on the Isle of Man, has now been in place, tried and tested, for several years. We have world-class data centres and the best IT infrastructure out of all those jurisdictions making a comparable offering.
We also have a thriving, mutually supportive business community, which, in turn, attracts a large proportion of business visitors to base their business here. Success breeds success, and e gaming thrives feeds into the success of other sectors.
The Department of Trade and Industry and the Gambling Supervision Commission maintain a dialogue at all times on the changing needs of the industry, and, if we find something inhibiting to growth, have the flexibility to change and amend regulations. Aware of being under the spotlight, the industry is compliant, co-operative and willing to embrace future developments.