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BCS debates e-gaming
The British Computer Society Isle of Man (BCS) held an event this month to look into the future of egaming in the Island.
It took the form of a panel discussion with four industry experts fielding questions from an audience of around 40 BCS members and other interested people.
The panel included John Spellman, CEO of the Manx eGaming Association (MeGA); Rick Liotta, financial consultant to Poker Stars; Miles Benham, a solicitor who specialises in the online gambling industry; and Chris Gledhill, managing director of PDMS, a software development company with a solid track record in building successful egaming websites.
Discussion was kicked off by Mr Spellman who gave a brief history of the egaming industry in the the Isle of Man. Each panel member started off with a brief explanation of his role in the industry then the floor was opened to questions. A lively discussion ensued with more than 20 questions being answered over the one and half hour session.
Foremost in the audience's mind were questions relating to money laundering in the online gambling industry.
'The approach to mitigate money laundering taken by the egaming industry puts financial services industry to shame,' said Mr Spellman.
Mr Liotta went on to explain some of the policies implemented by Poker Stars: 'Our cash out process is scrutinised very closely. We have strong identification verification then we examine each player's behaviour ... Who did he play with ... how many games were played, etc,' he explained.
'In addition we have restrictions on deposits and very robust checking on the back end.'
BCS member Tracy Kinrade, marketing director at Central Core Components (3C), asked: 'What is it about online gambling that attracts people to play?'
Mr Gledhill answered, 'It's the social aspect of online communication. A proportion of the population likes to interact with people on the internet. You can play in a safe environment, your own home.
'Besides, you can't wear your pyjamas to play in the Hilton's Casino, can you?' he jested.
Mr Liotta went further. 'For many people the key is liquidity. You can find a 20 person tournament or a 20,000 person tournament online if that's what you're looking for. Liquidity is a clear motivator.'
The audience was also concerned about what the industry does to protect children and vulnerable people. Mr Benham explained: 'E-gaming companies here are required to be Gamcare compliant and to have a link to a gambling support service on their homepage. Only online gambling allows you such protections. You don't usually see gambling counsellors inside a casino.'
A quick trip to pokerstars.com bears this out. The homepage link, Responsible Gaming, brings you to a page that provides guidance to users on protecting children and there's a self-exclusion questionaire along with a link to the Gamblers Anonymous website.
Garth Kimber, head of e-gaming for the Isle of Man government was in the audience and he answered some specific questions about the Island's e-gaming strategy. 'There are now 12 licenses in the Island and discussions are taking place with almost 50 other companies. But the Isle of Man is in competition with a lot of jurisdictions and we need to find organisations that are right for us.'
The panel was asked about where the intellectual property of online gambling companies tends to held. Consensus was that in every case the answer is different, but for the most part the IP is held in the Island.
Mr Spellman went on to explain, 'The Island's egaming industry comprises about 240 jobs and represents a 60 million contribution to the Isle of Man economy.'
'Some of the very big call centres are located off the island for practical reasons; we don't have too many Chinese speakers in the Isle of Man,' explained Mr Benham. 'But for the most part the high value jobs stay here.'
Looking into the future, the panel said the biggest challenge for the Isle of Man is dealing with other jurisdictions entering the market. 'It's not the likes of the Channel Islands or Gibraltar we'll be contending with.
'It's countries, like the UK, who run a national lottery. Once they start to feel a threat to their revenues they will bring in licensing regulations in their own jurisdiction to shut down internet gambling. This is the challenge for the Isle of Man.'
Questions to the panel came fast and furious right up until closing time and unfortunately BCS Chairman Tony Verrall had to call time on this lively discussion.
The BCS runs monthly events and everyone is invited. Visit www.isleofman-bcs.org for more information.
>>Sherrilynne Starkie is the managing partner of Strive Public Relations, a communications consultancy serving the Isle of Man. She provides her views on business and technology each week in Tech Talk. Visit her business blog, Strive Notes for frequent updates.
www.strivepr.com
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Weather for Isle of Man
Tuesday 07 February 2012
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