The Isle of Man is reportedly examining the impact of embracing the offshore gambling sector that has been eradicated from the Philippines market at the hands of a tightening regulatory framework.
The crown dependency is set to take a meticulous and careful approach to embracing new operators from the market, as it seeks ‘credible operators’.
As reported by the Isle of Man Today, a spokesperson for Digital IoM stated: “Following conversations with businesses operating within the island’s digital sector, it was recognised that recent regulatory changes in the Philippines affecting Philippine Offshore Gaming Operators could present a strategic opportunity for the Isle of Man.
“The blanket ban imposed by the Philippine regulator creates a significant displacement of the sector, meaning legitimate and high-performing businesses operating there are required to seek alternative regulatory markets. Consequently, the Isle of Man, known for its robust regulatory standards in this space, could provide this alternative for those businesses which would meet these high standards.”
The Isle of Man has previously defended itself against UN criticism, saying it has a “zero tolerance” for financial crime.
Mark Rutherford, acting chief officer of the Gambling Supervision Commission sought to make it clear that ‘the GSC conducts its regulation in line with international standards’.
He added: “The GSC’s mutual evaluation by Moneyval in 2016 gave the GSC a very high technical mark for its AML CFT framework and we do not agree with the UNODC report’s conclusion that we have inadequate controls.
“The GSC has entry controls in place for businesses seeking licences and an ongoing supervision regime.
“Further, since 2016 the GSC has continued to strengthen its supervisory reach and last year created a new, dedicated division to carry out AML CFT inspections and enforcement, a division that is fully resourced with skilled and experienced staff.
“The GSC has also demonstrated it will take steps under its regulatory remit where it discovers non-compliance as can be seen with recent, publicised enforcement cases.”
In the Philippines, President BongBong Marcos has taken decisive action to clampdown on the presence of POGOs in the country, implementing a full ban on the operators.
Speaking at his state of the nation address, Marcos said: “Disguising as legitimate entities, their operations have ventured into elicit areas beyond gaming, such as financial scamming, money laundering, prostitution, human trafficking, kidnapping, brutal torture – even murder.
“The grave abuse and disrespect to our system of laws must stop. It is necessary to stop this disturbance in our society, and the desecration of our country.”
This marks a significant change for the country’s gambling sector as it seeks to exit the FATF AML grey list.
The evolution of the Philippines market was a major topic at the SBC Summit in Lisbon, with 12Bet’s Rory Anderson detailing his belief that there are important lessons to be learned from the country’s experience.
One is that the industry will be judged by its worst members, and it only takes a few apples to tarnish a band’s reputation.
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