Analysis ISLE OF MAN (PTII) developments in the US market.


One of the concerns for some licensed operators is that the successful pace of the e-gaming sector outweighed the development of the banking sector on the IOM. However this is something the government is now working hard on with the industry to change.


Confidence is low in the banking industry following the global economic crisis and although the IOM has good banking provision there can never be too much choice.


Ray Davies said: “Whilst our player protection requires suitable on-Island banking provision, occasionally we come across an applicant who is unable to bank here. For these situations, although rare indeed, the regulator has the ability under certain circumstances to consider dispensation for off-island banking solutions, and we have developed a number of methods that guarantee player’s unspent funds are fully protected whilst banking off-island. But it is fair to say we would welcome the provision of new banking solutions to the island.”


“Occasionally we come across an applicant who is unable to bank here. For these


situations, although rare indeed, the regulator has the


ability under certain circumstances to consider


dispensation for


off-island banking solutions, and we have developed a


number of methods that guarantee


player’s unspent funds are fully protected whilst


banking off-island. But it is fair to say


we would welcome the provision of new banking


solutions to the island.”


RAY DAVIES, e-gaming


Development Manager, DED.


WE HAVE


SUCCESSFULLY SIGNED A MOU


WITH DENMARK AND HAVE


EMBARKED ON A PROGRAMME OF INTERNATIONAL VISITS.


Although Europe is a key market for the IOM with 60 per cent of business coming to the island with a European or UK focus, as European tax rates and licensing conditions are having a detrimental effect on the gaming industry, the DED is now concentrating on the Asian and Latin American markets where there is consistent growth.


A trip in early 2011 by the Department of Economic Development to Panama and Costa Rica saw seven companies from this area take licences in the IOM.


Last year the Isle of Man GSC and the Danish Gambling Authority agreed the terms for a bilateral cooperation


agreement which has set up a formal agreement to cooperate and share information between the Danish and IOM authorities.


This MOU will permit gaming systems to be located in each other’s country. Denmark also had bilateral cooperation agreements with Gibraltar, Alderney and Jersey. The Danish authority aims to enter into more bilateral agreements with foreign commissions.


This in turn should create a range of commercial and business opportunities for the IOM. The GSC is now talking to numerous other European countries to replicate this agreement.


Ray Davies added: “Like almost all other jurisdictions we have kept a close eye on changes in the international regulatory arena. Our first steps have been successful with the signing of an MOU with Denmark and we have embarked upon a comprehensive programme of international visits which are currently ongoing.”


In terms of future outlook the e-gaming team believes Asia is a key market whilst bilateral agreements with EU members states will be a significant area plus they are continuing looking at the


Meanwhile, in January 2012, Conister Bank launched the island’s first ever e-gaming dedicated banking product. Conister Bank ProTect has been created specifically for the Isle of Man’s e-gaming operators and has been approved by the GSC.


It has been structured so that the bank can accept gaming operators’ funds and place them on a fiduciary service with other banks. The system also meets player protection requirements set by OGRA which requires player funds to be segregated from operational accounts.


Conister Bank’s MD Juan Kelly said: “The e-gaming sector has been under-served historically and it is now high time for positive action and I am proud that Conister Bank is the first bank on the island to step up to the plate.”


Two key issues had to be addressed in the development stage and that included the ability to take funds on the bank’s own balance sheet whilst also providing a fiduciary service or conduit for e-gaming companies. It is thought ProTect will now also attract more e-gaming businesses to the country.


Although the e-gaming business on the island has been growing rapidly the GSC did warn that the shortage of local banking facilities could potentially dissuade new business from coming to the island and this could create a barrier to future expansion.


April 2013 PAGE 65


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