ESI Entertainment Systems Inc., made a Vancouver announcement Monday that its Citadel Commerce subsidiary, which handles all of the payment processing for the online gaming industry is planning to make a move. This company is planning to relocate its primary data centre from Vancouver to the Mediterranean Island nation of Malta. Malta has become an increasingly important centre for online gambling companies licensed and regulated under its law in recent years. The actual company which has been in fact downsizing and restructuring its business following a change in the United States laws has forced Citadel to pull out of that market. It also revealed that Citadel is reducing its North American marketing personnel further. Whilst its call centre which is located in Costa Rica has been enhanced to support additional operational responsibilities as well as local accounting capability.
This is what happens when there are more laws for companies put out on the table, they run to somewhere else where they have the opportunity to do the same thing that they were doing before, but not under the laws that would restrict them from doing so. The main goal is to relocate somewhere that isn’t going to be as strict as they are here in the United States. However, you have to think that the reason these laws are made is because the local government wants to be able to protect everyone that is involved. There goals is not to cut anyone out, if anything it is to put others in.
The UK operational and sales staff has also been increased and software development has been outsourced to India. Outsourcing is a way of cutting back on costs and labor, it is cheaper for a company to outsource the work rather than give it to the company to handle. There has been a backdrop of the United States officials interfering with online gambling, not to mention that this week Neteller has pulled out from the Canadian and Turkish markets, and the Citadel move only suggests a new strategy to tap into the significant demand for a reliable and experienced third party processing on the online gambling world scene. Gambling is not going to stop due to laws; the only thing that laws are going to do is run them from where they are to somewhere where they can build a steady income and company.