by : Morgan Collins
Gibraltar has a lot to offer in the wake of the US restrictions on gambling companies. While the US industry was virtually wiped out overnight, Gibraltar and the rest of Europe are set to profit.
As the fallout in the wake of the US law which bars Americans from making payments to online gaming companies continues, non-US firms are continuing to shake the international gaming industry.
Gibraltar, where many international online gaming companies reside, has not been able to escape the fallout.
However, following recent set-backs in December 2006, with significant job losses at companies such as 888.com, Party Gaming and Mansion, Gibraltar's gaming industry does not seem to be dented irreparably and confidence in the long-term future of these companies looks bright.
However pessimistic recent media reports have been, the US law which came into force in November (effectively wiping out a billion dollar industry overnight), the impact on Gibraltar's gaming industry has not been has hard as many first feared.
December's developments shook companies like 888.com, one of Gibraltar's biggest employers. 888.com recently sacked 140 staff and this news created a wave of new uncertainties among staff of other companies. Despite dismissal of a third of 888's staff, its CEO claims that it is in a strong position to help maintain staff levels through takeovers of some smaller competitors based outside Gibraltar. So far, rumours are rife that 888 will itself become target of a takeover by one of Britain's biggest gambling firms, Ladbrokes.
Further sackings or redundancies are likely to be on the cards on a smaller scale as many companies seek to re-invest in European markets and change their strategy moving forward. In the next few months also, it is likely that there will be more rumours of mergers and acquisitions.
These redundancies or mergers are likely to have little impact on the 1600 employees of gaming companies, or Gibraltar's tax revenue from the 15 or so licensed internet gambling firms, which for the year 2006 was some 10 million.
Plans for a multi-lingual betting service and a massive promotional drive to attract global punters have been accelerated by Part Gaming in its response to the US law.
As the biggest of the Rock's gaming operators, it lost 70 percent of its business following the US law. In the first half of the year Party Gaming achieved profits of over $150 million from operations outside the US and has probably secured the jobs of most of its employees for the time being.
St Minver, another of Gibraltar's large gaming employers, who operate multi-lingual bingo, poker and casino products under a white label online bingo and poker games strategy, have not been affected by redundancies or profits during the US fallout as 100% of its operations were European based.
In fact, its strategy of white labelling has proven to be successful in Europe, where it is difficult to obtain a gambling licence, and where large brands such as Virgin in the UK, and Ramblers in Russia can take advantage of the experience, infrastructure and player liquidity that St Minver has obtained.
All in all the long-term prospects of Gibraltar and its gaming industry looks bright. Certainly Europe can benefit from the number of companies with a Gibraltar gaming licence, wishing to tap into players who have yet to experience online poker, bingo or casinos.
About the Author
Written by Morgan Collins for St Minver Ltd an white label online bingo and poker games operator for brands wishing to launch online bingo, casino or poker.
As the fallout in the wake of the US law which bars Americans from making payments to online gaming companies continues, non-US firms are continuing to shake the international gaming industry.
Gibraltar, where many international online gaming companies reside, has not been able to escape the fallout.
However, following recent set-backs in December 2006, with significant job losses at companies such as 888.com, Party Gaming and Mansion, Gibraltar's gaming industry does not seem to be dented irreparably and confidence in the long-term future of these companies looks bright.
However pessimistic recent media reports have been, the US law which came into force in November (effectively wiping out a billion dollar industry overnight), the impact on Gibraltar's gaming industry has not been has hard as many first feared.
December's developments shook companies like 888.com, one of Gibraltar's biggest employers. 888.com recently sacked 140 staff and this news created a wave of new uncertainties among staff of other companies. Despite dismissal of a third of 888's staff, its CEO claims that it is in a strong position to help maintain staff levels through takeovers of some smaller competitors based outside Gibraltar. So far, rumours are rife that 888 will itself become target of a takeover by one of Britain's biggest gambling firms, Ladbrokes.
Further sackings or redundancies are likely to be on the cards on a smaller scale as many companies seek to re-invest in European markets and change their strategy moving forward. In the next few months also, it is likely that there will be more rumours of mergers and acquisitions.
These redundancies or mergers are likely to have little impact on the 1600 employees of gaming companies, or Gibraltar's tax revenue from the 15 or so licensed internet gambling firms, which for the year 2006 was some 10 million.
Plans for a multi-lingual betting service and a massive promotional drive to attract global punters have been accelerated by Part Gaming in its response to the US law.
As the biggest of the Rock's gaming operators, it lost 70 percent of its business following the US law. In the first half of the year Party Gaming achieved profits of over $150 million from operations outside the US and has probably secured the jobs of most of its employees for the time being.
St Minver, another of Gibraltar's large gaming employers, who operate multi-lingual bingo, poker and casino products under a white label online bingo and poker games strategy, have not been affected by redundancies or profits during the US fallout as 100% of its operations were European based.
In fact, its strategy of white labelling has proven to be successful in Europe, where it is difficult to obtain a gambling licence, and where large brands such as Virgin in the UK, and Ramblers in Russia can take advantage of the experience, infrastructure and player liquidity that St Minver has obtained.
All in all the long-term prospects of Gibraltar and its gaming industry looks bright. Certainly Europe can benefit from the number of companies with a Gibraltar gaming licence, wishing to tap into players who have yet to experience online poker, bingo or casinos.
About the Author
Written by Morgan Collins for St Minver Ltd an white label online bingo and poker games operator for brands wishing to launch online bingo, casino or poker.
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