Blockchain

MALTA SHOOTS ITSELF IN FOOT? RISING RENTS PROMPT ANOTHER WARNING FROM GAMING INDUSTRY

Published

7 years ago

September 24, 2019

Is Malta, the iGaming hub of Europe, risking losing the sector because of rapidly rising rents, a growing banking crisis, crumbling infrastructure and rising animosity?

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

Rents rapidly outpacing wages for most sector employees

Yet again an iGaming industry spokesperson has clearly warned that Malta, which has enjoyed massive economic growth thanks to the gaming and emerging tech industries, is shooting itself in the foot, with rent rises fast outstripping pay for most workers in the sectors.

Speaking to Malta Today, Enrico Bradamante, chairperson of iGen, a representative group of the gaming sector that is one of the stakeholders discussing the current Rent Reform Bill, warned that rents rises are rapidly outstripping the pay of customer care staff and copywriters – the kind of roles that make up the bulk of gaming employees.

With rent the biggest single living cost to most people working in the industry, the situation is making Malta rapidly lose its appeal to workers. As we have reported previously, many people are lured to the island by what, initially at least, seems like good pay, only to find out that they would be better off working a lower paid job in another country. Hence, they stay for a short time and then leave – something that is costing companies dearly, and further undermining Malta’s competitiveness.

An industry misunderstood

The problem is further compounded by the fact that Malta has one of the highest property ownership rates in the world (a consequence of political policies in the early days of independence), meaning that much of the local native population – who obviously make up most landlords and voters – have little real idea of the cost of living when paying rent, so misunderstand the growing crisis.

As someone who has first-hand experience, I can also attest that there is indeed a massive misconception, with many local Maltese assuming all iGaming employees are highly paid – something probably not helped by the top tier of sector employees who are extremely highly paid making a point of flaunting their wealth!

But, as my old maths teacher used to say, “when looking at average figures, be careful which type of average you use, because they can give very different impressions.” The simple truth is, most gaming workers are not highly paid by any stretch of the imagination, and when rental costs are taken out, they most likely have far less disposable income than most Maltese realise.

This is aptly illustrated by the flurry of comments underneath the Malta Today story from locals, trying to put the blame firmly on iGaming employees themselves! With some comments suggesting that employees are being out of order for wanting to live within walking distance from their offices! The stupidity of such comments can only be truly appreciated by someone who has attempted to either commute by car or public transport in Malta – the 5^th most densely populated country on the planet, suffering from horrendous traffic, parking and pollution problems, and relying on a completely inadequate public transport system. I would argue that it is insane people think that commuting should be encouraged given the realities in Malta!

Twilight of the Maltese success story?

Of course, the rent crisis is just one aspect of the changing nature of Malta. As we have covered before, there is also a banking crisis – with both individuals and companies finding it extremely difficult to access even basic services in the country – and creaking infrastructure is huge issue.

For years now, tiny little Malta has stood out as an economic success story – achieving truly incredible things for an isolated rock that is smaller than the Isle of Wight. Something every Maltese person, and all those foreigners who contributed, should be immensely proud of.

And, over the past couple of years, the Maltese government has shown great vision with its plan to turn the country into a blockchain and emerging tech hub. But, everyone should remember that the very nature of gaming and tech companies means they can rapidly shift to other jurisdictions, and that there are now many other countries offering better qualities of life, lower living costs and equally as attractive legislation.

Anyone who is in the industry in Malta will have already noticed that, excluding the considerable, but very short term, Brexit-related boost caused by the relocation of some operations by companies like bet365 and William Hill from Gibraltar, the atmosphere is changing. It is still subtle, but more workers, fed up with being treated like cash cows, are upping sticks and leaving, and more companies are opening up offices elsewhere.

Even the fact that SiGMA, Malta’s most significant gaming events organiser, is now putting more focus on Asia, should speak volumes.

And, of course, let’s not forget the United States. Since the repeal of PASPA in May 2018, and the subsequent on-going state-by-state legalisation of sports betting and online casinos, it is clear that the US will be the biggest and most important betting market in the future. Given that, it may be difficult for companies to justify remaining heavily committed to an island in the Mediterranean Sea that doesn’t even offer direct flights to the United States.

In the balance

Despite the clear warnings, and the promises by government that they will address the issue with the Rent Reform Bill, which is currently being discussed, it seems like Malta’s days as an iGaming hub are numbered. Unless attitudes fundamentally change at the grassroots level, its difficult to see how anything will turn things around.

Its tough to see how any legislated rent controls would work, without alienating landlords and investors, and drawing condemnation from locals. What is needed is a genuine change in attitudes to something that values longer-term sustainability over short-term gain.

No doubt some will argue that it doesn’t matter if the gaming sector leaves, because they can be replaced with emerging tech companies like cryptocurrency exchanges. However, this would be a flawed argument because those companies tend to employ far fewer staff than gaming companies. To put this in perspective, Binance is the world’s largest cryptocurrency exchange by volume, and has indeed opened an office in Malta – but globally it employs just a handful of staff.

Of course, things are still in the balance. Malta could turn things around and reinforce its position as the leading gaming hub, while adding blockchain, emerging tech and esports to the mix – developing a truly world-class long-term economy. But, time is running out to address some truly fundamental problems, like rent, attitudes and infrastructure. And, its worth remembering, once the industry is gone, it won’t be coming back.

Blockchain

VCOIN LAUNCHES DEBIT CARD WITH UPHOLD: IMVU USERS EARN IN-GAME & SPEND IN REAL LIFE

VCOIN has teamed up with Uphold on a debit card that lets IMVU users spend currency earned in-game on real-world purchases.

Published

5 years ago

June 29, 2021

AYO News Staff

Vcoin launches debit card with uphold: imvu users earn in-game & spend in real life

VCOIN, the transferable digital currency used in the social metaverse app IMVU, has launched a debit card in partnership with digital money platform Uphold, allowing users to take value earned inside the virtual world and spend it in real life.

IMVU users can now withdraw VCOIN to an Uphold account and spend it using the Uphold debit card, earning 2% cashback on every purchase, both online and in store.

How the card works

The card is available first to US residents, with international availability to follow. Digital-only cards are free to order and use through the Uphold Card app, while a physical card carries a one-off fee of $9.95. Cashback on purchases is paid into the cardholder’s Uphold account.

From virtual economy to real wallet

VCOIN was first introduced inside IMVU, the friend-discovery and social metaverse app operated by Together Labs. IMVU runs one of the larger virtual economies of any social platform, with around 27 million transactions and 14 billion credits changing hands each month, according to the company.

The debit card closes the loop between that in-app economy and everyday spending. Creators and users who earn VCOIN by selling virtual goods or participating in the community can now convert those earnings into money they can use at ordinary merchants, rather than keeping the value locked inside the app.

A test case for the creator economy

The launch reflects a wider effort across gaming and virtual worlds to let users earn real income from in-game activity. It also highlights the regulatory hurdles involved: by routing withdrawals and spending through Uphold, an established and regulated money platform, VCOIN relies on a partner already set up to handle compliance, identity checks and card issuing.

How widely users adopt the card will be watched closely by other platforms considering whether to let virtual currencies flow out into the real economy.

Blockchain

ENGLISH PREMIER LEAGUE’S WOLVES ENTER ROCKET LEAGUE CHAMPIONSHIP SERIES

Published

6 years ago

November 5, 2020

AYO News Staff

English Premier League football club Wolverhampton Wanderers (Wolves) has entered the Rocket League Championship Series (RLCS).

Wolves already fields rosters in FIFA 21, FIFA Online 4, PUBG, Identity V, and Pop Kart Racing, and is the first Premier League club to enter the RLCS.

Discussing the news Wolves General Manager for Marketing and Commercial Growth, Russell Jones, said:

“Gaming and esports remain a crucial part of our brand growth strategy and signing such talented and ambitious players to represent our Rocket League esports team is another step forward in our journey to build stories outside of football and widen the appeal of the Wolves brand across the world.

“We have spent the last six months scouting teams and players and are delighted to welcome Rix, Luis and Ole, who will become Wolves Esports for the remainder of the current RLCS season X and beyond. We will be offering the team our full support as they compete in the winter split.

“I’d also like to thank the University of Wolverhampton who continue to be an exceptionally supportive partner of the Wolves Esports programme.”

While Team Captain of Wolves Esports Rocket League, Rix Ronday, added:

“It is a real honour to captain the first-ever Wolves Esports Rocket League team. I’m confident that we have recruited two of Rocket League’s most exciting talents in Ole and Luis and we are working hard behind the scenes to prepare for the RLCSX Winter Split kick-off.”

AYO.NEWS says:

Wolves have already demonstrated their enthusiasm for esports, using it to strengthen what is now a powerful global brand – for example, way back in February 2019, it became the first Premier League club to enter Chinese esports, through a partnership with Weibo eSports Club.

And, given the very real possibility of COVID-19 causing further disruption to football, diversifying the brand into multiple esports seems like a smart way to ensure fan engagement can continue, come what may.

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates.

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

Blockchain

FIFA 21 CHALLENGE IS MOST WATCHED EA ESPORTS EVENT YET

Published

6 years ago

November 4, 2020

AYO News Staff

The EA SPORTS™ FIFA 21 Challenge has smashed the viewership record, with an Average Minute Audience of over 250K.

A one-day esports tournament that paired top global professional footballers with the world’s best FIFA players, the EA SPORTS™ FIFA 21 Challenge drew an average minute audience (AMA) of 254,057 with a total watch time of 1,024,696 hours, making the event the most-watched EA operated esports broadcast in history.

In fact, the broadcast more than doubled the viewership metric set by the next most-watched EA operated FIFA event, the FIFA Global Series FUT Champions Cup: Barcelona, which took place over multiple days in January 2018 and registered an AMA of 92,678.

During the competition, four esports players paired with four professional footballers from international clubs Liverpool, West Ham United, Inter Milan, and Borussia Dortmund, clashed on October 29 for the EA SPORTS FIFA 21 Challenge.

Liverpool’s Trent Alexander-Arnold and Fnatic’s Tekkz took home the trophy and won $20,000 on behalf of their selected charities

In addition to incorporating celebrity participation to reach non-traditional gaming audiences, the EA SPORTS FIFA 21 Challenge was the first event to utilize FIFA Global Series Viewership Rewards, creating an interactive broadcast for viewers with in-game benefits for watching to further drive engagement and subsequent play time.

Reflecting on the event EA SPORTS FIFA Commissioner, Brent Koning, said:

“EA SPORTS FIFA is woven into the fabric of football culture. Bringing professional footballers and our esports pros together creates entertainment that sets our tournaments apart.

“The success of the FIFA 21 Challenge reinforces our strategy and vision for broadening the esports audience, creating content for our fans, and underscores the value of entertainment-driven events that branch outside of traditional esports.”

The FIFA 21 Challenge was a part of a series of EA SPORTS FIFA 21 Global Series pre-season invitationals, featuring notable influencers, footballers, and FIFA pros, in partnership with the interactive entertainment world’s biggest video streaming and content platforms.

It’s a nod to EA’s renewed competitive gaming strategy, which leverages the convergence of traditional sports, competitive gaming, and pop culture to create new, engaging, and accessible broadcasts for diverse audiences.

AYO.NEWS says:

Viewership figures like this illustrate just how integrated esports, especially FIFA, is becoming in mainstream football culture, and the growth looks set to continue, and reflects well on EA’s competitive gaming strategy. Last month, EA announced improvements and a bigger prize pool for the upcoming esports season.