A survey of egaming companies in the Isle of Man estimates that the sector grew by almost 24 per cent in 2010 - and is forecast to continue in 2011 with an estimated further 8 per cent growth.

The annual Manx eGaming Association (MeGA) survey was completed again this year and alongside a survey of the e-business sector conducted by PKF, on behalf of the Department of Economic Development, financial data was obtained from a number of e-business and egaming companies on the island and compared with similar data obtained in previous years.
 
Key results from the research included:

  • The number of staff employed by the respondent companies in the sector rose by 8 per cent when comparing like for like companies which participated in both the 2008 and 2009 surveys. (The sector now provides over 645 diverse and skilled employment opportunities).
  • Participants were asked to record how much they spent in the Isle of Man (other than on salaries) to help determine the sector’s contribution to the economy. The survey recorded a 24 per cent year on year increase to over £153m excluding capital spending.
  • The total tax take rose by 36 per cent to £15.2m. Tax-take incorporates the total ITIP, National Insurance and gaming duties paid by respondent companies. 

Chairman of MeGA John Webster commented: "Tax revenues are generated for the Treasury, job opportunities are being created and the industry’s demand for top-class software, telecommunications and other support services has significantly improved the quality of the island’s business environment; the egaming sector has thus acted as a catalyst for companies with similar exacting requirements to consider locating on the Isle of Man.
 
"Forecasts for 2011 confirm MeGA’s view that the island’s egaming sector has passed its initial growth phase and is now a mature industry. This implies that there will be increasing price competition, merger activity and focus on the bottom line that this inevitably brings. It is therefore essential that we recognise the need to keep ahead of the increasing number of jurisdictions competing for new business in this sector. Recent news of actions by regulators to protect their domestic markets is a further reminder that we cannot be complacent. The lost revenue, cost and distractions of dealing with changing regulatory environments should not be underestimated and they will add to the uncertainties surrounding future growth in the sector."