Egaming remains a significant sector of the Manx economy, but a longer-term strategy is needed to put it on stable footing.

That was the message from the head of the government’s Department for Enterprise in evidence to a Tynwald scrutiny committee.

Arbory, Castletown and Malew MHK Jason Moorhouse suggested that 14 gaming licences had been lost in the last 14 months.

That figure appears to be an underestimate - 23 licences were surrendered or cancelled in the last financial year, with a further seven since the beginning of April. But during the same period 20 new licences have been awarded.

Interim chief officer Andrew Stewart, who appeared before the economic policy review committee alongside Enterprise Minister Tim Johnston, replied: ‘I don’t think we can diminish the challenges in egaming. They are recognised.

‘But I think there are a number of areas to understand. Licences are certainly one measure but it’s certainly not the be-all and end-all for the sector.

‘There are a number of large businesses including some of those in the 14 mentioned that still have a significant presence on the island. It’s just they don’t need to be licensed for the activity they take.

‘While it’s often described as a new sector, it’s been here 25 years so it’s a significantly well-established sector, not quite as mature as financial services, but it is absolutely evolving.

‘I think the key for the egaming sector and our approach going forward is to take a step back and look at a longer-term strategy - which is exactly what is happening and has happened, led by the Digital Agency but with some key support from the sector. We will be bringing that forward in June.

‘It is still a significant sector, employing around about 1,0000 people or supporting over 1,000 jobs, but the global landscape in this sector generally is changing.

‘It’s not just the Isle of Man that’s having this particular challenge. So it’s right to take a step back and put it on a stable footing.’

The latest big name to surrender its licence is Celton Manx, which had held a licence with the Gambling Supervision Commission since 2008.

Celton Manx operates international online sports bookmaker SBOBet.

In March this year, PokerStars announced that as part of an ongoing programme to optimise its operating model, it no longer needed an Isle of Man B2B licence.

PokerStars owners, the Flutter Group, said there would no impact on players and staffing levels in the island.

Last month it was revealed that the island’s gambling regulator was facing a shortfall of £778,000 this year due to a lower-than-expected number of gaming licences on its register.

Enterprise Minister Mr Johnston told the committee: ‘On the whole the economy has fared well considering the pressures it’s been under.

‘I think we all recognise that since the administration started in 2021, when the economic strategy and the Island Plan were set out, we’ve seen some major external shocks.

‘Taking that into account, the economy has held its own.’