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Written On  5/6/11 By staff writer Jennifer Jearu :

Sector expanded by 24 percent last year
A survey of leading e-gaming companies in the Isle of Man estimates that the sector grew by almost 24 percent in 2010 – and is forecast to continue in 2011 with an estimated further 8 percent growth, reports
The sector now provides over 645 diverse and skilled employment opportunities, making it one of the recent success stories within the Isle of Man’s economy.
The annual Manx eGaming Association (MeGA) survey was successfully completed alongside a survey of the E-business sector conducted by PKF (Isle of Man) LLC, on behalf of the Department of Economic Development. Financial data was obtained from a number of e-business and e-gaming companies on the Island and compared with similar data obtained in previous years.
Key results from the research included:
* The number of staff employed by the respondent companies in the sector rose by eight percent when comparing like for like companies which participated in both the 2008 and 2009 surveys.
* The survey recorded a 24 percent year on year increase to over GBP153 million excluding capital spending and salaries. This is expected to rise to GBP165 million by end 2011.
* The total ‘tax take’ rose by 36 percent to GBP15.2 million. ‘Tax-take’ incorporates the total ITIP, National Insurance and gaming duties paid by respondent companies. 2011 should produce GBP18.5 million in tax revenues.
* The industry on the island employed 645 people last year, and this is expected to rise to 693 in 2011.
John Webster, Chairman of MeGA, said: “These survey results show another robust performance by the e-gaming sector on the Isle of Man. Tax revenues are generated for the Treasury, job opportunities are being created and the industry’s demand for top-class software, telecommunications and other support services has significantly improved the quality of the Island’s business environment; the e-gaming sector has thus acted as a catalyst for companies with similar exacting requirements to consider locating on the Isle of Man.
"Forecasts for 2011 confirm MeGA’s view that the Island’s e-gaming sector has passed its initial growth phase and is now a mature industry. This implies that there will be increasing price competition, merger activity and focus on the bottom line that this inevitably brings. It is therefore essential that we recognise the need to keep ahead of the increasing number of jurisdictions competing for new business in this sector."

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