Threat To IoM's Online Gaming Industry Could Come From UK

by Jason Gorringe, Tax-News.com, London

13 May 2003

The Isle of Man's online gambling industry could be threatened if new legislation planned in the UK gets the go ahead.

Plans first introduced by British Culture Secretary Tessa Jowell last year aim to make it easier for online gaming firms to use servers based on the UK mainland. Traditionally, US or UK based internet gambling firms have preferred to base their servers offshore in places like Malta, Gibraltar and the Isle of Man. Consequently, it is feared that the new proposals dubbed 'The future regulation of remote gaming and gambling' may mean the UK becomes a direct competitor with offshore jurisdictions for online gambling business.

Paul Doona, Managing Director of IoM based online bookmaker betinternet.com told Isle of Man Online that the impact of a remote gaming regime in the UK mainland was difficult to assess, though acknowledged that it would be a potential competitor.

"The Island's biggest competition is undoubtedly staring at it from across the Irish Sea. There will be an impact - the extent of it I don't know. The Island was first in so it is ahead of the game", Doona told IoM online, adding "The UK has looked at the situation and decided that it (online casino gambling] is coming and they want to be able to take best advantage of the situation."

Doona has assured however, that betinternet is not considering relocating to the mainland, though he did concede that there was a likelihood that business will be lost as a result of the developments taking place in Westminster.

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