King Gaming scandal highlights deeper, strategic issues for the Isle of Man

This blog post starts with the strong caveat that Reayrtys is not an expert body covering financial crime, money laundering or serious organised crime.

However, it is impossible for an initiative such as Reaytrys, which is focused on ensuring a powerful and prosperous future for the Isle of Man, to avoid having a point-of-view on the recent reports from BBC World Service.

For us, it is a tangible and serious example of what can happen when you don't have a clear strategic vision supported by a robust, modern policy agenda,

One local solicitor frames this wider issue when they write:

“We are being targeted on multiple levels [by organised criminals] partly due to operational weaknesses but mostly poor strategic policy and naivety. If we want to welcome the whole world to our shores without discernment then we will reap what we sow.”

More importantly, we need to be clear that while King Gaming is one high-profile example, it is shining a spotlight on much broader strategic problems the Isle of Man is facing.

We have highlighted several of these before, but three key issues stand out here:

1. lack of strategic vision

2. lack of robust, evidence-based and globally benchmarked policy responses

3. lack of leadership and operational failures

   
   

1/ Lack of strategic vision for the Isle of Man

Firstly, we argue that with no real, strategic vision there are real risks for the future of the Isle of Man’s stability, let alone prosperity.

Without a clear, national vision any policy response or commercial opportunity will do. As many have noted, this seems to be writ large in the King Gaming example.

Population growth and increased revenue are key objectives, but without a vision on the type or nature of growth we want to see, any growth will do. And there are certainly on-Island commentators questioning who undertook due diligence on King Gaming? How well did Government scrutinise the deals, visas and other requests being made by representatives of the firms in question before offering support? Was it a case of hitting targets at any cost? Or, as Maria has suggested, naivety or a regulatory framework unfit for purpose?

There are, of course, those that argue the Island Plan is the strategic vision. But way back in 2022 we pointed out that what the Plan presents is not a strategic vision. It outlines some desirable - but ultimately foundational - expectations for any modern, prosperous democracy: security, vibrancy and sustainability.

2/ Lack of robust, globally benchmarked policy

Following on from the above point, without no clear vision there’s a risk that whatever levers are used to deliver desired outcomes are outsourced or, worse, abrogated to whoever pays the most money, sets your regulatory frameworks, etc - as we now see with King Gaming.

Again, we have argued previously about the need for reform and more robust, evidence-based policy-making. We have also looked at benchmarking the Isle of Man’s position, economic approach and its ‘soft power’ qualities (i.e. non-material strengths) with other relevant countries.

There is a very risk that unless we start acting like a country - from policy-development to how we talk about ourselves and manage our reputation - we will be far from operating like a country.

3/ Lack of leadership and operational failures

Combining a lack of strategic vision and lack of robust policy, the King Gaming news also appears to be compounded by what Maria calls ‘operational weaknesses’.

While Reayrtys has hitherto avoided covering civil service reform, we have certainly heard many stories of poor policy delivery and have encountered frustrations directly.

We don’t believe the answer is reducing the size of Government. Rather, we believe that if we are to step up and position ourselves as operating as a globally unique and desirable country on all levels then we need to be able to undertake policy delivery effectively and efficiently.

Of course, achieving this is partly linked to leadership. Strong and well functioning organisations of any type rely on strong leadership. Again, in the King Gaming example we have arguably seen very weak leadership from Government. While it’s easy, and accurate, to say we can’t comment owing to an ongoing legal case, there is still much the Government can say and do to demonstrate it’s really on top of the situation.

And at the moment, this is not what they’re doing. As a consequence there is a real risk observers around the world will be making judgements about the reliability and reputation of the country.