'E-gaming growth puts our reputation at risk'

GUERNSEY'S reputation is at risk because of gambling companies, two deputies have warned.

The UK's largest interactive gaming company, Netplay TV, is spending £500,000 setting up studios in the island to take advantage of tax savings.

It is just the latest gambling company to be attracted to Guernsey.

But Deputy Barry Brehaut said that by creating the studios, the business was going to attract the wrong sort of attention.

'On one level we are a blue-riband financial centre, but on the flip side we are accepting e-gambling,' he said.

'Guernsey is under enormous scrutiny right now, so it is risky for the island to digress from what it knows well - finance.'

Deputy Graham Guille (pictured) said it could be only a matter of time before Guernsey had a problem.

'The finance industry is based on knowing your customer and we do not know our customer, the gaming companies,' he said.

He welcomed the jobs and money coming to the island, but still had concerns.

'If something goes wrong, mud sticks,' he said. 'I have no problem with the new company in particular, but with every new company, the risk of something going wrong grows.'

Netplay TV CEO Martin Higginson said the business was good for the island.

'With financial services going into a downturn, anything that brings money into the local economy is good for the island,' he said. 'We have been using locals as much as possible, including architects, builders and electricians.'