If you were betting on a business sector with a big future, you’d be backing a certain winner with the online gambling industry.
Where it was once frowned upon as a fad with limited appeal, over the last decade, the eGaming sector has undergone meteoric growth.
Just consider the figures. In 2022, the global online gambling market - comprising sports betting, poker, bingo and casinos - was valued at USD 63.53 billion. Between now and 2030, it’s expected to grow at a compound annual growth rate of 11.7%. Whilst the market is dominated by sports betting, which accounts for almost 50% of revenues, in recent years a myriad of gaming genres has sprung up, helping to cement the eGaming sector as a multi-faceted global powerhouse.
Within this flourishing environment, the Isle of Man has established itself as a major player in recent years.
Indeed, some of the world’s leading gaming brands and software developers are headquartered here. This is hardly surprising, given the Island’s advantageous tax system, an eGaming friendly Government with a globally respected regulator, competitive gaming duty and licensing approval that is normally completed within a three-month timeframe.
The Isle of Man’s future as a major eGaming hub looks assured for many years to come, however, that doesn’t mean to say that anyone connected with the sector is resting on their laurels.
Online gaming might be associated with having fun (within sensible boundaries), but it is also a serious business, where money can be made and lost in equal measure.
Online gaming industry is especially susceptible to international payments and exchange rates
Whilst the essence of eGaming involves a flutter, when it comes to foreign currency transfers, it’s certainly not something worth gambling with. In terms of international payments, the sweet spot, if not the jackpot, is to minimise risk wherever possible, in order to protect a company’s finances.
Given the “borderless” nature of the eGaming arena, reliance on foreign currency exchange is part of everyday business for many companies operating within the space. It also leaves businesses vulnerable to fluctuations in currency exchange rates and the potential for the erosion of revenue streams and reduction in profit margins. This means it is important to make the right call with the markets and to leave nothing to chance - not just amongst the major currencies, but across all jurisdictions.
The repatriation of funds to a country where the currency might be showing inherent weakness against another, could lead to a substantial loss in value of foreign earnings.
For this reason, it is essential that eGaming companies who regularly need to make international payments, take the necessary steps to mitigate risk, in order to protect their profit margins.
That’s why working with a specialist foreign currency provider, well versed in handling and administering transactions worldwide, can make a big difference. High Street banks rarely, if ever, are able to provide this level of expertise. So, if you are in the online gaming sector and are currently using this type of provider, it would be worth looking at other options.
By working with an FX specialist, you can manage your foreign exchange exposure, plan your budgets well in advance and ultimately keep profits intact.
How MFX can help your eGaming business save money
Established in 2014, MFX is an Island based FX brokerage, dedicated to steering businesses in the right direction with their international payment requirements. A wholly owned subsidiary of the AIM-listed Manx Financial Group (MFG) and a sister company of Conister Bank, MFX is a key partner of Moneycorp, one of the world’s leading foreign exchange companies. Handling over 120 currencies worldwide, Moneycorp have in-depth knowledge of the eGaming sector. Payments can be sent to over 190 countries.
As a result, MFX is well-positioned to facilitate tailor-made 24/7 international payment solutions for online gaming companies, prioritising transaction costs and an appropriate level of exposure to currency risk.
MFX will ensure that you are assigned a dedicated account manager, to ensure you receive all the guidance you need to navigate currency volatility and ensure your payments are handled quickly and reliably – for whomever, wherever and whenever.
Your account manager will understand the ins and outs of online gaming and will, therefore, be well-placed to provide FX solutions for the online gaming industry.
Assisting Isle of Man eGaming companies
Our global payment solutions have assisted a number of Island-based eGaming companies, including Microgaming, the leading gaming software giants.
“MFX tailored their service to meet the needs of our business and we have saved considerable amounts of money during this time. I would recommend them to any business that deals with the FX market,” explained Microgaming Director, Kirsty Hanks.
MFX Managing Director May Hooper commented: “The Isle of Man has a long-standing and well-earned reputation in the global eGaming industry. We believe now, more than ever, local operators have a requirement for locally based FX expertise. MFX is ideally positioned to offer a dedicated, high quality FX service to the gambling sector that is on the doorstep. We look forward to expanding our existing ties with local operators.”
If you operate in the online gaming industry on the Isle of Man and are looking for an alternative provider, or a second opinion on your current foreign exchange arrangements, call MFX directly on 01624 694722 or email david.shimmin@mfx.im.