Esports

KILLING THE GOOSE THAT LAYS THE GOLDEN EGG? MALTA PRICES OUT GAMING INDUSTRY

Published

7 years ago

February 7, 2020

Despite repeated warnings from the gaming industry over the past two years, Malta seems to be determined to kill the goose that lays the golden egg – its iGaming industry.

Only yesterday the Times of Malta ran a story saying the tiny Mediterranean island nation is now a more expensive place to reside than Britain, Italy, Germany or Spain, with rents and the cost of eating out hurting the nation’s rankings.

So, what is going on in Malta – Europe’s iGaming hub and self-styled ‘Blockchain Island?’

**Why Malta was the perfect place to base your iGaming business**

Let’s rewind a few years, to say 2015-2016. The European iGaming industry is still largely an unregulated ‘Wild West’ and easy money is rolling in. To operators looking for a base, Malta looked great in terms of licensing, corporate tax, and costs.

It was extremely easy to attract young foreign workers from the Nordic countries, Germany, the UK etc. Heck, you just put some ads out online and in in-flight magazines, and ‘Bob’s your uncle!’ – a steady supply of bright, educated, native speaking (as in target market languages), enthusiastic workers able to power your iGaming business forward.

After all, the system worked: the gaming company pays you a modest salary (not the high salaries many native Maltese assume), but you can do a lot with it. Rent is affordable, people speak English, and having a good time is cheap.

But, despite iGaming becoming a central part of the Maltese economy, contributing massive amounts of tax (not just license fees and corporate tax, but also all the payroll tax, VAT etc of workers living and spending in Malta), local developers and businesses got greedy. Really greedy, really fast.

Malta today: expensive, overcrowded and crumbling

Fast forward to 2020, and despite a growing oversupply of properties thanks to the unbridled construction frenzy of the last two years (don’t listen to the rubbish the dysfunctional Maltese property ‘agents’ tell you), rents are still rising.

What’s more, its not just rents. Restaurants and bars are becoming noticeably expensive, as are other things. And, to top it all off, the quality of life in Malta is worsening, thanks to massive traffic issues, Europe’s worst noise pollution, abysmal public transport, dirty streets and inadequate infrastructure (we’ve all seen the sewers when it rains!).

In summer you can’t get near a beach, and the islands are starting to resemble something from a dystopian science fiction movie thanks to a complete lack of adequate planning processes and the tendency of Maltese developers to simply build the cheapest crap possible without thought for how it looks.

So, is it a surprise that we’re now hearing its almost impossible for gaming companies to recruit and keep the foreign talent they need? What Swede, Brit or German would say hey “sure, I’ll stay living in a country where I get paid less than at home, but it costs more to live!”?

And, let’s not even mention the insanity of trying to bank in Malta if you’re foreign!

The signs are everywhere

Just days ago we reported that LeoVegas, one of the biggest gaming companies in Malta, has abandoned plans to move into a larger premises – actually preferring to pay a heft penalty fee for cancelling the already signed contract. At the end of October, we shared how major online games developer Yggdrasil decided to close its Malta studio and move work to Poland, saying it just couldn’t attract the right talent to Malta anymore.

But they are just two high-profile examples of thing getting tough. Those of us working in gaming in Malta are also well aware that many companies are now finding it next to impossible to retain foreign staff – especially those with the skills needed to market and service key northern European markets.

Of course, many Maltese will argue this isn’t a problem, because “local people should have the jobs anyway.” This argument is, of course, utter nonsense. It is not insulting Malta to say that a country with a similar size population of the small British city of Nottingham (and, importantly, no ability to tap into a much wider population in neighbouring towns and cities that can commute in), is not ever going to be able to supply the majority, or even a sizeable chunk, of the human resource demands of an industry as specialised as iGaming – no matter how much it invests in education. In fact, Malta is already doing extremely well to provide the specialised workforce it already does – something the recently published skills gap report from the Malta Gaming Authority (MGA) illustrates.

As mentioned at the start of this article, over the past couple of years, the industry has been warning that things are unsustainable. But each time, it has been roundly ignored by a crisis-ridden self-absorbed government and wider society who seem to assume all people working in iGaming are rich and fair game. Sure, there have been some announcements of vague policies regarding rents, but as anyone on the ground here knows, its too little, too late.

The future

Of course, the Maltese iGaming industry isn’t going to disappear overnight. There will still be operators and suppliers based here in five years, but the boom is over. Furthermore, it is difficult to see how the same factors making life difficult for iGaming firms won’t also push away companies in the blockchain, emerging tech and esports sectors too.

Add to this the undeniable fact that, if it wants to remain part of the EU and wider international family, Malta is going to have to clean-up its act and bring its financial oversight and enforcement up to scratch. This, inevitably, means it can no longer count on the benefits of being an offshore tax and banking haven for the rich and dubious.

True, Malta still has tourism – but as the rapidly escalating coronavirus crisis is reminding us, relying on something as fickle as tourism to power your economy is extremely unwise.

This article features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited.

All original content featured on this site is © Pentagon Digital Limited, 2020.

Esports

LEXUS SUPPORTS ESPORTS AWARDS FOR THIRD CONSECUTIVE YEAR

Published

5 years ago

October 29, 2021

AYO News Staff

Luxury carmaker Lexus is returning to support the Esports Awards for a third year running

As Official Auto Partner of the awards, the company will be working with the Esports Awards on a number of activations that incorporate their vehicles. Lexus will also sponsor both the Esports Organisation of the Year and Streamer of the Year awards.

Lexus made its esports debut with the Esports Awards in 2019, when it provided several supercars from blockbuster movies, which took centre stage at the Esports Stadium Arlington. Last year, the carmaker collaborated on exclusive content as part of the highly successful virtual ceremony.

“It’s an honour to be able to welcome Lexus as a partner for the third year in a row. After supporting us through a successful virtual ceremony last year, it speaks volumes that Lexus has once again committed to going all-in and driving the esports ecosystem forward. Both of our brands focus on prestige and excellence, and I look forward to showcases our joint values as we return to a physical event in November,” said Michael Ashford, Managing Director, Esports Awards.

Esports

REKTGLOBAL BRINGS TOP GAMING TALENT TO INFINITY FESTIVAL 2021

Published

5 years ago

October 29, 2021

AYO News Staff

ReKTGlobal, the digital entertainment and esports organization, has been named one of the official presenters of gaming content at the 2021 Infinity Festival.

On 3 November, superstar gaming creators Ally Battaggia (a.k.a TheGeekEntry) and Gabby Murray will join Stove’s Kitchen and Paul Shaw in a panel exploring the content creator economy. In addition, ReKTGlobal CCO Kevin Knocke will share his unique expertise in a panel on esports.

Battaggia, who has a growing following across social media, took on streaming during lockdown, joining the fan-favorite NoPIxel GTA RP server. Since then, she’s become a mainstay participant, even crafting a NFT/TCG collection from her beloved GTA RP character. With 9.6M social media followers, Murray has built a fanbase as a multi-talented lifestyle and gaming content creator, with a Discord community that is expanding by the day.

Top gaming creator Stove’s Kitchen (whose real name is Steven Cho), part of the Team RAR (Rare and Ridiculous) internet group, has a devout fan following on his YouTube channel, where he posts gaming and challenge videos. Meanwhile, Shaw oversees Special Projects at TalentX Entertainment, a subsidiary of ReKTGlobal. The four will join forces for Making a Living as a Content Creator: Much More Than Gaming — a panel that explores what sets livestream content monetization and strategy apart from pre-produced content.

Also on 3 November, Knocke will take part in an esports panel with Darin Kwilinski, Lead Content Producer at IGN Entertainment, and Amanda Solomon, CEO at Tyrus Talent Management. The panel, Esports or Esports? Does It Matter? will break down misconceptions about esports to separate the hype from actual substance.

Knocke, who has been competitively gaming since he was a kid, has years of involvement with high profile companies and events in the esports business – specifically Blizzard Entertainment, IGN, SiriusXM, Sony, South by Southwest, E3, PAX, and Ubisoft — giving him a broad perspective on the industry. Before joining IGN, Kwilinski, a lifelong gamer, was a senior editor for esports at ESPN, establishing its vision and voice. Solomon is an executive with a well of expertise in the strategic sales and partnerships realm, specializing in esports, gaming, and talent.

Now in its exciting fourth year, the forward-focused Infinity Festival is the place where Hollywood meets Silicon Valley. The multi-day annual event, held in Los Angeles, brings together Hollywood’s finest storytelling talent with the innovative creators of cutting-edge technology. For 2021, Infinity Festival will blend in-person and virtual events for a unique hybrid experience.

The in-person portion will be held in several adjacent Hollywood locations with most events happening at Goya Studios and the Dream Hotel; the online component will be presented through the easy-to-use FNvirtual event platform. The festival will continue its theme of “Story Enabled by Technology” with an entirely new slate of innovative programming, including industry-leading speakers, panel discussions, an exhibition hall, innovation labs, and a fine art gallery, each with an emerging-tech focus.

For tickets and additional information, visit infinityfestival.com.

Esports

TEAM SINGULARITY TO LAUNCH FAN TOKENS VIA BLOCKSPORT

Published

5 years ago

October 29, 2021

AYO News Staff

Danish esports organisation Team Singularity has extended its partnership with Swiss fan engagement platform Blocksport.

The multi-year agreement will see the launch of the $SNG Fan Token, giving holders access to unique opportunities to influence team-related decisions, enter the fast-track at SNG Academy, access exclusive content, train with professional esports athletes and more.

$SNG Fan Tokens are expected to launch in December 2021 with a supply of 3M, and will be priced at €1 each in the initial sale.

Commenting on the news, Atle S. Stehouwer, CEO and Founder of Team Singularity, said: “I am happy that our partnership with Blocksport is officially extended and we can finally announce the next step in our collaboration.”

Vladimir Liulka, CEO and Co-Founder of Blocksport, added: “We are happy to extend our exclusive partnership with Team Singularity and launch $SNG Fan Token for their fans. Singularity has a global and awesome fan community. The Token opens up a new world – an environment in which they have the chance to be very close to their favorites players and team”.

Team Singularity currently fields rosters in CS:GO, Fortnite, Rocket League, League of Legends, FIFA, Apex Legends, Rainbow Six, VALORANT, Free Fire, Teamfight Tactics, Hearthstone, Quake, League of Legends Wild Rift, Call of Duty, Call of Duty Mobile, Call of Duty Warzone, PUBG, PUBG Mobile, DOTA 2, Overwatch, Heroes of the Storm, Battalion 1944, H1Z1, Tekken7, Rogue Company, Brawlhalla, and Clash Royale. In addition to Blocksport, the organisation has commercial partnerships with PWC, Pluck GG, Raven, SCUF, KontrolFreek, Randers FC, Esportal, Challengermode, MYESPORTSCARD, and MYFUTCARD.

Staying with esports and Blocksport.io, just yesterday we reported the platform had partnered with Jordanian sim motorsports organisation Desert Fox Racing.