The chief executive of Digital Isle of Man, Lyle Wraxall, has characterized a recent risk assessment that restricted e-gaming licenses from parts of Asia as a “huge mistake.” Speaking at the Digital Isle conference at the Comis Hotel, Wraxall addressed the ongoing challenges faced by the island’s e-gaming sector, particularly in light of previous infiltrations by global crime syndicates.
A National Statement on eGaming and Financial Crime, released in June 2023, indicated a “limited appetite” for issuing licenses to businesses with ownership or control from East and Southeast Asia. This decision has drawn considerable criticism from industry leaders. Wraxall stated, “The national risk appetite statement was a huge mistake in my opinion and I think has been accepted as a huge mistake by the AML/CFT team.” He emphasized the lack of communication surrounding the statement, calling it a “cock-up.”
Industry representatives have echoed Wraxall’s sentiments. David Artus, senior accounts manager for Domicilium, highlighted the absence of a retraction or apology from government officials. “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,” he said. Wraxall agreed, acknowledging the need for improved communication.
Future Steps for the E-Gaming Sector
Wraxall indicated plans for a revised risk appetite statement that would allow for amendments to the existing wording. “Obviously, we need to make sure we don’t make the same mistakes with the future version,” he stated. He admitted that the current statement had not been well communicated and clarified that Digital Isle of Man could not issue apologies on behalf of other government functions.
The agency faced scrutiny last year after a controversial trip to Manila, aimed at attracting offshore gaming operators banned in the Philippines due to alleged criminal ties. As the island gears up for a significant inspection by MoneyVal in less than a year, the e-gaming landscape continues to shift. In the past 12 months, 64 online gaming licenses have been surrendered or canceled, a decrease from nearly 100 licenses at its peak.
During the conference, Wraxall also announced that 60 jobs were recently lost at Games Global/Microgaming, reflecting the sector’s current struggles. When asked about the island’s e-gaming strategy, he revealed that a strategic document created in April had undergone numerous reviews. Ambitious elements had been removed due to concerns over how they would impact aspirations for a successful MoneyVal outcome.
The document has been retitled as a “statement of strategic intent,” which Wraxall believes will better align with the objectives required for the forthcoming MoneyVal assessment. He candidly admitted that the document has been significantly altered, stating, “The document does not have much left of it, in all honesty.”
As the Digital Isle of Man looks to navigate the complexities of e-gaming regulation, the emphasis on transparency and effective communication will be crucial for regaining the confidence of industry stakeholders and ensuring a secure future for the sector.
