Media reports as InfoPowa went to press indicated that the successful
online poker operation Poker Stars will be officially announcing its
move to the Isle of Man this week.
Accounting for more than 10 percent of market share in the poker sector,
Poker Stars will undoubtedly bring millions in revenue with it, and
the island is likely to cash in on this agreement through a licensing
fee and by collecting tax revenue. Recent changes to corporate taxation
in the island have made for attractive levels of tax for groups like
Poker Stars.
The reports argue that at this point, online gambling law gets tricky.
Thanks to the island's change in law, Poker Stars believes it has
the right to accept US bets. Poker Stars is banking on the fact that
because the Isle of Man's defense and foreign policy is protected
by England, it falls under the authority and laws of the World Trade
Organization.
The Poker Stars move has once again generated rumors that it might
try to pursue a listing on the London Stock Exchange, a tactic that
could further cement Poker Stars' legitimacy in the international
business community.
PokerStars' move from Costa Rica will also help to increase its image
throughout Europe, allowing them to target a new audience that will
support its core of US users. Poker Stars is hedging its bet on its
European success in another way as well. It is the main sponsor for
the European Poker Tour and has launched a major advertising campaign
in the U.K.