An e-gaming risk assessment that closed the door to new business from parts of Asia had been a ‘huge mis-step’, the head of Digital Isle of Man has admitted.

Lyle Wraxall, chief executive of the executive agency, made the comment at the Digital Isle conference held at the Comis Hotel.

It’s been a challenging 18 months for the island’s e-gaming sector, amid revelations of infiltration by global crime syndicates.

A National Statement on eGaming and Financial Crime, published in June, said there is now ‘limited appetite’ to grant a licence for business in the e-gaming sector where there is ownership and/or control from East and Southeast Asia.

Mr Wraxall told the conference: ‘The national risk appetite statement was a huge mis-step in my opinion and I think has been accepted as a huge mis-step by AML/CFT team.

‘I’d say nothing more than a cock-up, it’s a pretty big one - right? But the lack of engagement on that topic, the way it was rushed out, has been very clearly fed back.’

He said they had been left with no uncertainty about the feelings of industry around how the statement was presented, pitched and communicated.

David Artus, senior accounts manager for Domicilium, pointed out that there had been no retraction or apology.

He said: ‘What this industry needs is some assurity from the government. It would be really helpful if you’ve made a mistake, just to ‘fess up and tell the industry that was a mistake.’

Mr Wraxall said he ‘didn’t disagree’.

He said there will be an all-combined risk appetite statement that would provide an opportunity for amendments to the current wording.

‘Obviously, we need to make sure we don’t make the same mistakes with the future version. I admit that’s not been well-communicated.

‘I’m not here trying to make excuses. Unfortunately as Digital Isle of Man we can’t apologise on behalf of other functions in government.’

The agency came under fire last year over a trip to Manila to see if it could attract offshore gaming operators banned in the Philippines over concerns about alleged links to criminality.

Thursday’s conference came as the island prepares for a crucial inspection by MoneyVal in less than 12 months’ time.

Some 37 online gaming licences in the Isle of Man have been surrendered or cancelled over the past 12 months, taking the total to 64, down from a peak of just under 100.

And the conference heard that 60 jobs had been lost recently at Games Global/Microgaming.

Asked for an update on the island’s e-gaming strategy, Mr Wraxall said a strategic document written in April had gone through a number of reviews.

Elements with ‘a sense of ambition’ and ‘talking about new things’ had been removed over concerns about how they might play against aspirations for a successful MoneyVal outcome, he said.

The title had been changed to a ‘statement of strategic intent’, which he said ‘would enable us to get through MoneyVal’.

‘The document does not have much left of it, in all honesty,’ he admitted.

A spokesperson for the Department for Enterprise said: ‘The department, alongside all of parts of the Isle of Man Government is committed to maintaining a robust stance against transnational financial and organised crime. This reflects the agreed policy of the Council of Ministers.

‘This includes alignment to and promotion of the national risk appetite which is informed by credible international and domestic sources.

‘The department is committed to supporting legitimate iGaming operators and maintaining the island’s international reputation as a trusted and respected jurisdiction is of the utmost importance.

‘Ensuring a full understanding of emerging risk and setting out an agreed national risk appetite are key factors in maintaining such a reputation and protecting the Island’s economy and community from crime in all forms.

‘The Isle of Man Government is actively listening to the feedback, at both political and officer level, and continues to work collaboratively with all stakeholders to support the eGaming sector’s significant contribution to a vibrant and sustainable economy.’