E-Gaming with Fidelitas

The growth of e-commerce in general and perhaps e-gaming in particular have highlighted how the internet has changed the retail and leisure behaviour of millions of people around the world over the last decade or so.

These changes in behaviour have opened the door of opportunity for those located away from the large urban centres to access these markets via the internet in a way that has never been possible before.

We’re also seeing a growing trend towards specialist products from our applicants. This manifests in three ways:

- a tight focus on key markets based, for example, on ethnic or linguistic principles;
- innovative models which come with very detailed research on specific target markets;
- an increase in Live Casino products where a video feed transmits live pictures of the gameplay, giving users a higher level of interaction and increasing the entertainment value of the gaming.

Other areas which are also on our radar are interactive TV and mobile phone betting, although these are always playing catch-up with the technology itself which is fast-moving to say the least. As this stabilises I expect to see an influx of these kinds of products.

We’ve also had a number of enquiries about our new Exclusion Regulations which carve out of the licensing regime the support industries associated with gambling. Last month we were able to talk to a prospective applicant and advise them that their affiliate work could come to the Island without requiring an online licence. It is important in developing the Isle of Man as a gaming environment that our requirements are clear and as practical and concise as possible, and communication is obviously a vital part of this.

Finally, we’ve observed a growing hardnosed business ethic, supplementing the more passionate approach of our earlier operators. The choice of the Isle of Man as the place to licence is one of a number of very carefully weighed business decisions and we always ask our applicants what swayed them in our favour. A lot of them cite the abundant power, bandwidth and comfortable business environment; some of them point to administrative difficulties or taxation uncertainties in other jurisdictions, but recently an operator simply said:

—–

A Versatile e-Gaming Jurisdiction
On arriving here for their first business visit, people soon realise that the Isle of Man has much more to offer than a low tax regime, although that is very attractive too.

The Island is a great place to live and residents enjoy the highest quality of life, which is down to a combination of a unique and diverse culture, short commuting times, low crime and the low personal tax rates.

A land of opportunity

What makes e-Gaming businesses want to base in the Isle of Man?

There is a definite spirit of enterprise and innovation in the Isle of Man and the prevailing ‘can-do’ attitude is played out through the Island’s values of independent thinking, resilience, resourcefulness and community loyalty.
In fact the Island is one of the most business friendly regions in Europe and was ranked 4th “Most Business Friendly” area in Foreign Direct Investment Magazine’s European Regions of the Future 2008/09.

This dynamism is matched by responsible attitudes towards regulation and compliance. The Island has maintained coveted AAA credit ratings from both Standard and Poor’s and Moody’s credit rating agencies since 2000 and in 2007, The Lord Mayor of London called the Isle of Man a “core asset” for the City.

Close links with London are furthered by the Island’s success at attracting companies wishing to list on the London Stock Exchange’s Alternative Investment Market (AIM). The Island is the most preferred location for non-UK companies wishing to incorporate when listing on AIM and 75% of India’s AIM listed companies are incorporated in the Isle of Man.

Travel links off Island are also excellent; the Island is an hour or less by air to most or the large regional airports including London, Manchester and Birmingham.

Meeting the needs of e-Gaming

The needs of the gaming industry are particularly well met by the Island’s infrastructure which has had to progress rapidly to keep pace with increasingly sophisticated demands. In the last 10 years or so, the Government has spent in excess of £1bn on infrastructure, including an award-winning 88MW Combined Cycle Gas Turbine Power Station. Manx Telecom has invested £50m on technology infrastructure and a further £30m combined has been spent by data hosting centres in recent years.

Much more development has taken place that is invisible, such as subsea and underground networks for telecoms, electricity and water. In telecoms the Isle of Man enjoys resilient off-Island links through a variety of fully-managed global connectivity solutions. It was also the first nation in the world to launch 3.5G mobile broadband while fixed broadband penetration is high. Telefonica subsidiary, Manx Telecom, have also installed the world’s first converged IP network for both fixed and mobile services – a Next Generation Network (NGN).

The level of resilience and stability offered in the jurisdiction combined with excellent data hosting facilities and supportive legislation has made the Island an obvious choice for all manner of e-businesses as well as for disaster recovery. As an e-gaming jurisdiction in particular the Island boasts a number of the largest players in the market and local service providers who have become experts in meeting the needs of companies looking to licence in the Isle of Man.
Supportive Government

As a Self-governing British Crown Dependency the Island has its own government and laws but maintains important ties with the UK. It also has a reputation for political stability. The private sector enjoys close working relationships with government, and Ministers are accessible which translates into reduced bureaucracy and less red tape.

The Island enjoys a special agreement with the European Union under Protocol 3 of the Treaty of Accession which allows movement of goods within the EU without tariff. In conjunction with a Customs and Excise agreement with the UK, this facilitates free trade with the UK and EU citizens are entitled to travel and reside in the Island without restriction.

The Department Economic Development has a dedicated team who provide practical support and advice on how to start and develop an e-Gaming business in the Isle of Man and they can also provide financial assistance for those businesses that create economic benefit for the Island.

All in all the Isle of Man has a lot to offer e-Gaming businesses. Any company who wants to be based in a dynamic, positive environment that can offer a great package of benefits should give the Isle of Man serious consideration.

The Detail

• One Licence covers all activity £35,000 per year
• Sub-licence @ £5,000 per year is available if services of a full licence holder are exclusively used.
• 1.5% duty rate dropping to 0.1% (Compares to the UK rate of 15%)
• Total lifetime expert assistance from the Department of Economic Development
• Approachable and fast acting Gambling Commission
• 10-12 week licensing process

………………

ILS Fiduciaries looks set to add another success to their e-gaming portfolio in the form of its latest granted licensee, Gioia International Limited,

We assisted with the incorporation of Gioia International Limited on behalf of a client in November 2009, before going on to assist them with their application for an e-gaming license which was approved on March 2nd 2010.

With some of our existing clients having already received prestigious awards within the e-gaming industry, it is predicted that Gioia International is to follow suit.

The client and founder of Gioia International Limited, Gene Gioia speaks of his experience with ILS and the Isle of Man as nothing but positive. He said “ILS, together with the Isle of Man Department of Trade and Industry (“DTI”) and Gambling Supervision Commission (“GSC”) have provided excellent service and assistance throughout the whole process. Their knowledge and experience has proved invaluable to Gioia in ensuring a smooth and efficient progression in preparing the company for its recent launch.”

Gioia International Limited’s online poker site www.realdealpoker.com will be launched soon and is predicted to take the online poker scene by storm with its new “Cut N’ Shuffle” and “Game Check” systems.

Lee Hills, ILS’s e-Gaming Co-ordinator said, “This has been an extremely exciting project to assist with. The Gioia International team have defied the perception and proven that there can be scalability in dealing a real deck of cards to online tables. With margins getting tighter, innovation is going to be the key to success for new operators in coming years, and Gioia have certainly brought a unique offering to the table for online poker players.”

Gene Gioia has already been twice nominated for an Innovation Award for his unique site, where poker players can take part in a fair and totally auditable game of online poker, a product offering that remains unmatched by any other online poker site.

Gioia International’s new technology is the first of its kind and replaces the typical “random number generators” (RNG’s) used on other online poker sites. It offers players real cards, real players and real poker. The site boasts a number of qualities, which none of their competitors currently hold. These include; each and every hand played using a single deck of cards, burn cards used in live games and players being able to cut the deck of cards.

To view Gioia’s unique technology in action visit their website www.realdealpoker.com

The benefits that surround the Isle of Man as an e-gaming jurisdiction are second to none, its responsive Gambling Commission, its Tier 1 regulated status and its world-class telecoms infrastructure provide a platform for any e-business to thrive.

It is hoped that the envisaged success of Gioia International will attract other e-gaming clients to the Isle of Man as an e-gaming jurisdiction.