E-gaming is a sector we can be proud of, says Quayle

[Non-Believer]

2 minutes ago, NoTail said:

But how proud we can be to have a highly regulated tiny business which is diminishing. 

And Rog can be proud to know that UK is currently offering immoral e-gaming and such even bigger tax breaks than we are. And probably will even more after Brexit 

[Andy Onchan]

2 hours ago, Rushen Spy said:

Companies following an immoral business model are not something we should be proud of, nor something we should encourage to be here. I don't care if it generates short-term revenue: most of that goes to people they bring over anyway, and is factored out by the additional costs to services and infrastructure (and increase in cost of living due to property prices) they cause. Also, there is no long-term future in it. The writing is on the wall that they're relocating to jurisdictions that are not only tax efficient for them but closer to significantly cheaper sources of labour. If this is the ace up the sleeve or "plan B" the government was hoping would save the island's economy, they are setting us up for economic ruin.

But Grand Theft Auto is not gambling related, is it?

[thesultanofsheight]

3 hours ago, Andy Onchan said:

It's no wonder e-gaming companies are fleeing Mann:

https://www.eurogamer.net/articles/2020-01-20-rockstar-responds-to-report-it-claimed-gbp37-6m-in-uk-tax-relief

That’s the basic misconception of “offshore” as zero tax can be an inhibitor to companies that need to invest massive amounts to grow and develop. Here you get zero tax but you can’t write your R & D costs off against anything so you’re fully funding your R & D yourself whereas in the UK with these sort of schemes you’re still investing the money you’d invest in a new product but you’re getting a huge amount of it back in tax breaks against profits you’ve made on other trading activities. It’s probably the reason why some IOM companies are looking to onshore again as if UK corporate tax rates go down most of them will end up paying minimal tax anyway after offsets and other credits. 

[Amadeus]

1 hour ago, Non-Believer said:

But the labour isn't cheap, it's oft quoted how good the salaries and benefits are in (local, anyway) e-gaming concerns? Regulation (lack of) and tax breaks are more like the big draws to them?

Talent is very relevant so I'd argue Rushen Spy isn't entirely right on this one. The island actually has a good talent pool now I feel. Being a small place it will always have a few shortcomings in that area but it seems to be doing ok. New fields of tech are also fast growing. The Hub in victoria street is now pretty much full. All blockchain and crypto companies. Amazing to see that area grow so quickly. As for gaming / gambling, the whole industry is clearly heading towards more regulation and the island has always been very good at that. Better and more respected than most, if not all jurisdictions out there.

[thesultanofsheight]

1 minute ago, Amadeus said:

The Hub in victoria street is now pretty much full. All blockchain and crypto companies. Amazing to see that area grow so quickly. 

Hopefully they pay their bills. Most of them run out of cash at round two and all they leave is a pile of unpaid invoices to people who have provided services to them. 

[Rushen Spy]

40 minutes ago, Andy Onchan said:

But Grand Theft Auto is not gambling related, is it?

I wasn't talking about GTA and nor was the Chief Minister.

[Rushen Spy]

48 minutes ago, Amadeus said:

Talent is very relevant so I'd argue Rushen Spy isn't entirely right on this one. The island actually has a good talent pool now I feel.

I think you misread me. I said that the availability of talent here is not an issue.

The reason they are moving to places like Malta is because those places give them easier geographic (and regulatory) access to cheaper labour, less financial regulation, much more corrupt and easily-swayed governments (an anti-corruption journalist was recently murdered, so don't tell me I'm making that up), a broader spectrum of dodgy clientele and less need to enforce rigorous checks on them including money launderers, sanctioned countries/groups, terrorist finance. It's ideally situated near the money laundering hub of eastern Europe and the terrorist hub of the middle east.

The Isle of Man is simply too well-regulated (most of it self-regulation, not the government's inept regulators) to be a desirable place for undesirable businesses to do business. They just wouldn't be able to get away with the stuff here that they get away with in Malta.

And rightly so: I am glad those undesirable companies are either not here or are moving away from here. There are a lot of very good companies on the Isle of Man and I think it is only  a positive thing that we should retain and promote good companies and lose bad companies. E-gaming, sorry, but it is nothing but trouble. We should focus on the good companies, even if it means less short-term revenue. Long-term continuity and a good reputation (which I think the Island does have) is far more important.