Financial Times raises "serious questions" over government due diligence in King Gaming case

Video report scrutinises oversight and background checks, suggesting Isle of Man approach worsened fallout

The Financial Times has released a video raising what it describes as “serious questions” about the due diligence carried out by the Isle of Man Government in relation to King Gaming.

In April 2024, the Gambling Supervision Commission revoked the operator's licence, followed by a series of arrests.

The report questions what oversight was in place, and what checks were carried out on individuals linked to the company, given claims that the man alleged to be in charge has significant ties to major criminal networks.

It suggests that while the Government of the Philippines was cracking down on illegal operations, the Isle of Man viewed the situation as a "business opportunity" to attract so-called "credible operators" - a move the report says ultimately made a bad situation far worse.

It's not the first time the Isle of Man has attracted international media attention in relation to the scandal.

The BBC reported at length how a "seaside hotel and former bank offices on the Isle of Man have been used by scammers conning victims in China out of millions of dollars".

Manx Radio approached the Isle of Man Government for comment.

A spokesperson told Manx Radio:

"Cyber-enabled fraud and organised crime are not confined to any single jurisdiction. These activities are part of a highly sophisticated, fast-moving global ecosystem that exploits technology, including online gaming and gambling platforms and cross-border networks. This is a challenge faced by many countries worldwide, requiring international cooperation and constant vigilance.   

"As with other international finance centres whose financial and digital sectors play a significant role in their economies, the Isle of Man is not immune to the risk of exploitation by organised crime groups. 

"The Isle of Man works closely with domestic and international partners to ensure coordinated action to address associated risks and criminality.  

"These efforts reflect the seriousness with which the Island treats any attempt to exploit its business environment or immigration systems. 

"The Isle of Man has taken, and continues to take, decisive steps to address risks, including the publication of a National Risk Appetite Statement, enhancing the ability to share information between agencies especially by the GSC, making significant investment in law enforcement, sharing typologies and conducting widespread industry outreach.   

"The National Risk Assessment (NRA) is currently being finalised and will be published in full in the coming months. 

"eGaming remains a significant and important sector to the Isle of Man's economy, and the Island continues to offer an open, well-regulated environment for legitimate operators.   

"We take any attempt to exploit the Isle of Man’s systems extremely seriously. The Island does not tolerate criminal activity and will not hesitate to act to disrupt and prosecute those responsible. Our actions demonstrate a clear commitment to safeguarding the integrity of the Isle of Man as a reputable international finance centre."

The FT's video: "Scammers, spies and triads: inside cyber-crime's $15tn global empire" can be seen HERE.