The Isle of Man gaming license holders benefit significantly from the jurisdiction‘s positive reputation as a World Trade Organization member and is on the OECD’s white list. This status allows them to use UK marketing strategies to attract new clients.
Semi-autonomous, yet under the British Crown, the Isle of Man can set its own business rules and offer lower tax rates than the UK while still enjoying economic stability and protection from blacklisting due to UK influence.
The Isle’s dedication to regulating the gambling industry dates back to 1962 with the establishment of the Gambling Supervisory Commission, further strengthened in 2001 with a body to oversee online gambling. This history underscores its commitment to effective gambling regulation.
Isle of Man Gaming License Advantages
- The Isle of Man supports online gambling businesses with advanced telecommunications, data centers, digital currency usage, and blockchain technology, simplifying company management.
- Through the Isle of Man Enterprise Support Schemes, gambling entrepreneurs can access grants, loans, equity investments, and relocation funding, along with advisory services in software, marketing, and investment.
- No blacklisted countries for Isle of Man gaming operations, though license holders must operate in countries where gambling is legal.
- In case of regional disruptions, businesses can transfer operations to the Isle of Man for up to 90 days without suspending activities, with a subsequent need to apply for a local license.
- The Isle offers 0% Corporate Tax on most income, no Withholding Tax on dividends, royalties, and interest to non-Manx residents, and a Gaming Tax ranging from 0.1% to 1.5% on Gross Gaming Yield.
- Over 30 Double Taxation Agreements help businesses avoid double taxation.
- Limited companies in the Isle of Man are not mandated to prepare financial statements unless required by law, with exemptions from auditing and the freedom to keep records globally.
Isle of Man Gambling Regulations and Compliance
To separate online gambling from traditional gambling, the Isle of Man has clear rules. The Gambling Supervisory Commission (GSC) is needed to monitor compliance with these rules, focusing on Isle of Man gambling licenses, money laundering prevention, and protections for vulnerable groups. The main aspects will be described below:
- The Online Gambling Regulatory Act of 2001 (OGRA) is used to license various forms of online gambling, with the exception of bookmaking.
- The Gambling, Betting, and Lotteries Act (1988 and its 2001 Amendment) regulates traditional gambling, regulating promotion, protecting minors, etc.
In addition, considerable attention is paid to the fight against money laundering and terrorist financing (AML/CTF):
- Compliance with the requirements of the Gambling (Anti-Money Laundering and Countering the Financing of Terrorism) Act 2018.
- Ensuring customer due diligence and reporting of suspicious transactions.
Additional laws may apply to businesses operating in certain areas of the gambling business:
- The National Lottery Act of 1999.
- The 1986 Casino Act.
- The 1961 and 1970 Sweepstakes Betting Acts.
The Gambling Supervision Act of 2010.
Isle of Man Gaming License Varieties
There are four types of licenses:
Full License
- Covers broad B2C operations.
- Enables registration and data management of players.
- Permits White Label solution offerings for operational ease.
- Allows partnerships with several sub-licensees.
- Each sub-licensee partnership incurs a fee of £5,250.
- Includes rights to manage the principal company and subsidiaries.
- Annual license fee – £35,000.
Sub-license
- Targeted at gambling industry novices.
- Cost-effective option for those with an existing player base but lacking gaming products.
- Requires an exclusive partnership with a full license holder.
- Sub-licensees can leverage the main licensee’s platform and features.
- Option to upgrade to a full license for broader operational scope.
- Ideal for developing an online casino with established solutions.
- Annual Isle of Man gaming licence fee – £5,000.
Network License
- Offers the same benefits as a full license with added perks.
- Allows accepting players from licensed casinos in different jurisdictions.
- Simplifies player data migration and verification processes.
- Ensures cooperation is aligned with the Isle of Man’s fair and transparent service standards.
- Network expansion does not require extra fees but must adhere to local laws.
- Enables serving players from other platforms and cooperative operations with sub-licensees.
- Annual license fee – £50,000.
B2B Software License
- Optional but advantageous for software providers.
- Enhances the vendor’s credibility and inclusion in the GSC Commission’s professional list.
- Involves a certification process to ensure compliance with high standards.
- Facilitates easier integration by reducing the need for further certifications.
- Tailored for software development and distribution activities.
Gambling Licenses in the Isle of Man and Curacao
Starting the licensing process in the Isle of Man, you need to take care of local directors, a corporate bank account, and so on. Applicants, in turn, must have an impeccable reputation, and registration also involves the payment of state fees of approximately $54,000 (approximately £42,000). Customers must be provided with reliable protection of their deposits, RNG certification, and a detailed business plan. If you meet these and other conditions, you will be able to successfully obtain casino license in Isle of Man. Let us analyze all aspects in more detail.
On the other hand, Curacao is one of the top choices among startups. When applying for a Curaçao gaming license, you must create a local company and have a server using certified gaming software in this territory. It is also necessary to remember about audits and preparation of documents such as financial confirmation, business plan, identification of persons, etc.
Requirements for Acquiring an Isle of Man Gambling License
To obtain gambling license in Isle of Man, operators must adhere to specific criteria:
- The entity must be a share-limited company incorporated in the Isle of Man, suitable for both online and offline gambling activities.
- There should be evidence of competent and integrity-driven leadership.
- Adequate financial means are required to conduct gambling operations.
- If relevant, game servers and Random Number Generators (RNGs) should be located on the Isle of Man and certified by an independent software testing house.
- Operators must draft gambling rules aligned with the jurisdiction, publish them in multiple languages on their website, and develop internal AML/CFT policies for risk assessment and reporting.
- The initial capital requirement for a Full license is £100,000, variable based on the activity type.
Documentation to be submitted includes:
- A comprehensive business plan covering gaming equipment, software, target market, game rules, and marketing.
- Detailed game descriptions.
- Financial model and projections for three years.
- Third-party RNG certification.
- Technical System Testing report.
- Proof of Isle of Man server location.
- Notarized copies of passports and CVs of shareholders and directors.
- Recent bank statements of shareholders.
- Personal declaration forms for Isle of Man license applicants.
- Criminal record certificates for shareholders and directors.
- Proof of registered office address in the Isle of Man.
Shareholder statement on minors’ access restriction and problem gambling information on the website.
Acquiring an Isle of Man Gambling License
- Company Registration
Register your company with the local registry, appoint at least two directors, and rent a local office. The process takes up to 48 hours and costs around $130 (£102), with a faster option available for an extra fee.
- Corporate Bank Account
After incorporation, select a reputable bank, gather the necessary documents, and sign agreements to open a bank account.
- Office and Staffing
Hire key local employees and secure a lease for a local office.
- Document Preparation
Compile a comprehensive document package including a business plan, corporate policy, software documentation, articles of incorporation, personal declarations by directors and shareholders, criminal record proofs, passport copies, financial statements, detailed game descriptions, RNG certificate, and policies for excluding minors and problem gamblers. Incomplete documentation may delay the process.
- Application Submission
Submit the application along with the documents to the regulator, stay responsive for any additional queries, and pay the fees totaling about £42,000
- Final Licensing
Once approved, the company receives the Isle of Man Gaming License, authorizing legal operation within the jurisdiction, typically within a three-month review period.
Tax Structure for Isle of Man Gambling License
Based on annual revenue, the online casino license Isle of Man offers a tiered system of tax rates:
- If the income is up to £20 million, it is taxed at a rate of 1.5%.
- If the income is from £20 million to £40 million, it is taxed at a rate of 0.5%.
- If the income exceeds £40 million, it is taxed at a rate of 0.1%.
Therefore, net profit after deducting all expenses is taken into account based on profitability. In addition, the financial benefits are enhanced by the absence of corporate and capital gains tax.
FAQ
Can an Isle of Man gaming company have a non-local director?
Yes, it is possible. It is worth noting that within one month of registering an LLC in the Isle of Man, at least 2 local directors must be appointed.
What difficulties may licensees face?
There are some difficulties, including the severity of regulation and financial costs for business administration related to the nature of the business activity.
Are Isle of Man gambling companies subject to audit?
The Gambling Supervision Commission conducts inspections and monitoring on an ongoing basis. Regular audits are conducted to ensure Isle of Man licensed operators comply with the relevant laws, regulations, and licensing conditions.
How long does it take to get a gambling license from the Isle of Man?
The timeframe varies from several months to a year. In order to make the process as fast as possible, you need to take care of a prepared and comprehensive application in advance and promptly process GSC requests. Engaging lawyers with extensive experience in regulatory matters in this jurisdiction will be even more effective.
