With a first-class telecommunications infrastructure and numerous economic incentives for businesses wishing to relocate to her shores, the Isle of Man is one of the most reputable jurisdictions in the global e-gaming sector.

The self-governing Crown dependency, located in the Irish Sea at the geographical centre of the British Isles, chose to open its gates to the online gaming industry in 2000, and since then has grown significantly as a jurisdiction of choice, changing rapidly in the process.

Historically renowned as an offshore banking hub, the Isle of Man is a low tax economy, with the general rate of corporate income tax standing at zero per cent. Income tax rates for some are as low 10 per cent, and there is no capital gains tax, wealth tax, stamp duty or inheritance tax.

Leading the way

The Isle of Man was one of the first places to create a regulatory infrastructure for the online gaming industry, and has gone on to become one of the most respected jurisdictions in the world.

Online gaming was previously regulated under the Online Gambling Regulation Act 2001, while online betting was regulated by the Gaming, Betting and Lotteries Act 1988. It was, however, recognised that it was simpler to have all forms of online gaming and online betting fall under one legislative regime.

As such, as from September 1, 2007, all online gaming and online betting in the Isle of Man has been regulated under the terms of the Online Gambling Regulation Act 2001, which is more commonly referred to as OGRA.

In addition to the obvious financial benefits, the island has developed a strong reputation as an IT hub and a centre for IT skills, which is obviously an added attraction for those companies wishing to relocate. Furthermore, the Isle of Man offers growing businesses the space to accommodate an expanding and highly educated workforce.

The Isle of Man was the world’s second - and Europe’s first - jurisdiction to have an operational 3G mobile network, which was launched in December 2002. Moreover, the island brought the world’s first commercial HSDPA 3.5G service into play in November 2005.

The jurisdiction has resilient and reliable power supplies, and this is essential not just for remote gambling operators, but also for operators looking for jurisdictions within which to base their disaster recovery facilities.

White List accreditation

In August 2007, it was announced that the Isle of Man had been placed on the UK White List, allowing online gaming companies based on the island to advertise and market themselves in the UK. This was obviously welcome news for the many businesses involved in the Manx e-gaming sector and reflecting the UK’s recognition of the island as a quality global jurisdiction.

Commenting on the conferment, Garth Kimber, head of e-gaming development at the Department of Trade and Industry, said: “The UK white list is a crucial benefit to the Isle of Man. The UK’s Gambling Act 2005 [which was implemented in September last year] banned companies based outside the EU from marketing into the UK.

“Having been added to the White List, companies licensed in the Isle of Man are now excluded from this restriction and will be able to advertise into the UK for both the terrestrial and remote markets.”

Kimber, who took on the role of head of e-gaming in July 2007 to promote the Isle of Man as a jurisdiction for e-gaming companies, went on to state: “A number of businesses have put decisions to locate in the Isle of Man on hold pending the outcome of this announcement. Now this issue has been resolved we expect to see renewed interest from these companies who will hopefully progress with plans to invest here.”

A question of integrity

The Isle of Man’s integrity as an online gaming jurisdiction has attracted numerous businesses that actually count the majority of their customers in Asia. Despite obvious time zone issues, Bill Mummery of Betting Fun Isle of Man said the pros far outweigh the cons because the Isle of Man is universally seen as trustworthy seal of approval, and this is particularly pertinent for those operating in places such as Asia, where there is a higher propensity of fraud.

Chris Hobbs, head of corporate affairs for Microgaming, which is based in Douglas, said coming to the Isle of Man was a milestone for the company, and that its geographical location was an added bonus. “Microgaming operates in a truly global industry, with its licensees spread throughout jurisdictions across the world,” he told iNTERGAMINGi.

“As such, it needed a base from which it could reach out and communicate with them. The Isle of Man not only provides a strong communications platform from a telecommunications point of view, but it also provides a strong central base between the US and Asia from a travel perspective.

Hobbs said another key pull factor for the Isle of Man is the fact that access to the top levels of the island’s government is simple. “It is easy to get access to government officials, who are more than willing to give advice and guidance,” he noted.

“Microgaming has always had a positive dialogue with the Isle of Man Government on e-business and economic development issues and this continues to be very productive. I guess it is what you’d call a ‘user-friendly’ government.”

Garry Knowles, managing director of Webis Holdings, which owns Betinternet.com, added: “One of the best things about the IoM is that the government are very close to the people here.” Indeed, one of the best examples of this ‘accessibility’ element lies in the fact that Tony Brown, the Chief Minister for the Isle of Man government remains the proprietor of Tony Brown Electrics in Castletown, and can often be found in his store at the weekend - a far cry from the sacrosanct impregnability that is all too often conveyed by UK party members.
    
A positive lifestyle choice

To talk about the Isle of Man as a business jurisdiction will often throw up questions surrounding lifestyle, and what it is actually like to not only relocate your company on the island, but to move your entire workforce there.

“The quality of life is great,” Knowles continued. “It is true that some find it difficult to adapt, but most like it. You get a great work/life balance.”

In visiting the Isle of Man, it soon becomes clear that the region in no way adheres to the quaint British holiday resort stereotype of yesteryear. The island is currently in the midst of a renaissance, attracting those interested in world heritage, outdoor events, golf, cycling and windsurfing. Boutique hotels abound, and the Isle of Man’s beautiful countryside and coastal lines match up to some of the best England or Ireland has to offer.

The online gaming industry is fast moving and often frenetic, so getting a positive work/life balance is critical. And as the island provides a perfect mix of relaxing environment and leisure facilities, it is easy to unwind.

The strength of the Isle of Man as an online gaming jurisdiction is that across the sector there is a real sense of what’s right for the ‘Isle of Man Plc’. This rhetorical device ensures that everyone is an ambassador for the island - and this spans across both the public and private sectors.

Perhaps this comes from the realisation that to become a successful jurisdiction you cannot simply offer special tax incentives and leave it at that. It is clear that those within the Isle of Man think of the whole region as a brand - and the Isle of Man Plc is a device that no only panders to the requests of businesses and global corporations, but one that also focuses on providing its inhabitants with the best possible quality of life.