Events concerning an e-gaming firm at the centre of fraud and money laundering allegations have not seen a wider impact on the island’s gambling sector.

That was the view of Mark Rutherford, acting chief officer of the island’s Gambling Supervision Commission and the regulator’s board chairman John Allen as they gave evidence to a Tynwald scrutiny committee.

In April this year, authorities raided two business premises, located on Victoria Road and Bucks Road in Douglas, linked to e-gaming firm King Gaming Ltd.

Seven people were arrested during the raids before being released on bail pending further enquiries. Another three people were arrested the following month and later released on bail.

The gambling regulator suspended and subsequently revoked King Gaming’s licence.

Giving evidence to the economic policy review committee, Mr Rutherford was asked what impact the suspension of King Gaming’s licence has had on the island’s gambling sector.

He replied: ‘We were grateful for a fairly detailed briefing from the police. The force indicated that the gaming element could possibly be money laundering.

‘So we suspended out of an abundance of caution and brought forward their inspection and indicated to them we're going to revoke. There's due process there. We gave that company three months to come back with representation, then we revoked.

‘What impact has it had on the sector? I haven't seen an impact yet. Licensing numbers aren't slowing down for new business. It's typically not a conversation that's being had.

‘It's just generally accepted every jurisdiction is going to have one of these once in a while. We've had about 250 licenses in our time, and one of them turned into this. That’s not to be complacent. If there is an impact, it's going to be delayed.’

Mr Allen said it was a ‘great credit’ to the Isle of Man that this was identified and stopped.

He told the committee: ‘We've got a very efficient and effective detection mechanism which didn’t come from us, it came from outside, and has matters that don't relate to our regulatory regime. But it's a positive, really, that we identified it and shut it down.

‘Will it have an impact? Our part of it, almost certainly not.’

Referring to work stopping on King Gaming’s campus development off Victoria Road, Mr Allen said: ‘I think, as a taxpayer, it's a great shame. But if it's bad money, we don't want it, right?

‘So in a bigger scale. I don't think anybody looks at that and says “Well, I'm not going to go to the Isle of Man, because I can't get away with what I hoped I could get away with” - because they couldn't anyway.’