woolley Posted October 3, 2019 Share Posted October 3, 2019 1 hour ago, craggy_steve said: It may be big news, but it's just one foreign company reducing its IoM footprint for internal reasons. Doesn't of itself really carry much implication for the rest of the e-gaming sector - which faces many threats. I don't think we can really regard this merger, important though it is, as being a canary for the death knell of the rest of the sector; it's more to do with the positive US market ambitions of both companies. Perhaps more significant is the feedback from the recent gambling industry conference http://www.iomtoday.co.im/article.cfm?id=51130 - seeing Garth Kimber admitting to "confusion" is concerning, but as I have said many, many times, business models which depend upon regulatory advantage are inherently vulnerable - which is why the IoM should concentrate on building its footprint in those sectors where it can compete internationally on a level playing field. Gambling and Tax Mitigation sectors are both bad bets for the long term. It is the biggest single employer in the sector with over 400 staff. It was the sheer numbers in that business I was referring to rather than commenting on the sector as a whole. I appreciate there are other good, sizeable employers besides them in the sector and more hoped for. I would say that gambling grew out of finance and tax mitigation, so not really that different. There is a small high tech light engineering sector and a small bio-med sector, but even these can be transitory. Some have had huge investment for a long time and are yet to turn a profit. I struggle to think of anything that we can confidently predict will bring home the bacon to feed the already stacked up burdens of the next few decades. I have no doubt that we will find a way, though. There is no alternative. Link to comment Share on other sites More sharing options...
craggy_steve Posted October 3, 2019 Share Posted October 3, 2019 1 hour ago, woolley said: It is the biggest single employer in the sector with over 400 staff. It was the sheer numbers in that business I was referring to Understood. I think, though, that the losses will be around the sportsbook and some senior management (some of whom have already gone), because that's where the synergies are. The Poker offering, which seemed to have been the backbone of Stars in the IoM, is something that Paddy Power currently buys in from iPoker - and most pundits rate Pokerstars as being much better. I think there are grounds to hope that the home of the merged organisation's Poker offering remains here and may even grow with the extra market access provided by Paddypower. iPoker is a Playtech product, and Playtech HQ is in the IoM, so they might lose a bit if PP switch from iPoker to Pokerstars, but they don't have a massive footprint here so I would be surprised if it had much impact to Playtech's IoM footprint. Just guessing, but as a disinterested outside observer that would seem "rational". Link to comment Share on other sites More sharing options...
Albert Tatlock Posted October 3, 2019 Share Posted October 3, 2019 The real issue though is where the egaming tax flows. Into which country in future? Government annual income from income tax £160M + VAT + egaming taxes...annual spend £800M...result happiness. Government annual income from income tax £160M + VAT - egaming taxes... annual spend £800M...result misery. Link to comment Share on other sites More sharing options...
Albert Tatlock Posted November 13, 2019 Share Posted November 13, 2019 On 10/3/2019 at 8:09 PM, Albert Tatlock said: The real issue though is where the egaming tax flows. Into which country in future? Government annual income from income tax £160M + VAT + egaming taxes...annual spend £800M...result happiness. Government annual income from income tax £160M + VAT - egaming taxes... annual spend £800M...result misery. Oooops! Pokerstars revenues down on IOM... http://www.iomtoday.co.im/article.cfm?id=51942&headline=PokerStars' revenue and KFC planning permission in this week's Isle of Man Examiner - on sale now§ionIs=news&searchyear=2019&cat=Other News Link to comment Share on other sites More sharing options...
Non-Believer Posted November 13, 2019 Share Posted November 13, 2019 So does this also reduce IoMG tax take? ETA. Wonder what Skelly and DED's spin on this will be? "Bus Vannin now to take over online gaming operations"? Link to comment Share on other sites More sharing options...
thesultanofsheight Posted November 13, 2019 Share Posted November 13, 2019 1 hour ago, Non-Believer said: So does this also reduce IoMG tax take? ETA. Wonder what Skelly and DED's spin on this will be? "Bus Vannin now to take over online gaming operations"? The article relates specifically to the IOM gaming activity being down by 96% so you can safely assume that any gaming taxes on that book will now be collected by the Maltese tax office (if they have a similar levy) and not ours. In effect the transactions are not going through here anymore so we collect zero against that book of business. So it seems to me that main online commercial activities seem to now be going through Malta, and the main development activities for programmers seem to be in Bulgaria, and we have effectively a corporate office here overseeing some stuff. I drove up Onchan Head the other day. The parking problem that everyone was complaining about around Pokerstars certainly seems to have gone away so there will no doubt be some moaning bastards in Onchan delighted by the restructure as they can now sit in their cars looking helplessly out to sea eating their stale sandwiches looking for something else to moan like fuck about. Link to comment Share on other sites More sharing options...
Lagman Posted November 13, 2019 Share Posted November 13, 2019 2 hours ago, Non-Believer said: So does this also reduce IoMG tax take? ETA. Wonder what Skelly and DED's spin on this will be? "Bus Vannin now to take over online gaming operations"? Wasn't it mainly for the sake of these companies that our work permits were "relaxed"? Then they just F off and leave any mess behind them. Link to comment Share on other sites More sharing options...
Albert Tatlock Posted November 14, 2019 Share Posted November 14, 2019 It will be interesting to see the IOM resultant 'GDP' figures next year. Link to comment Share on other sites More sharing options...
Non-Believer Posted November 14, 2019 Share Posted November 14, 2019 I'm sure the figures can be massaged to indicate a continuation of our relentless economic growth. Incidentally, has anybody seen the FOM figures yet? A long time ago somebody posted on these boards that e-gaming was probably the most transient and portable "industry" in the world. Looks like they might have been right. A flutter in the conditions and taxation breeze and off they go. Link to comment Share on other sites More sharing options...
Donald Trumps Posted November 14, 2019 Share Posted November 14, 2019 e-Gaming is a highly significant proportion of IOM GDP now Surely IOMG is doing what it can to keep it here? Link to comment Share on other sites More sharing options...
doc.fixit Posted November 14, 2019 Share Posted November 14, 2019 ? Link to comment Share on other sites More sharing options...
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