Features of Licensing on the Island
To obtain a license, a company must meet the following requirements:
- As per OGRA:
- ensuring the development of gambling in the state of decriminalization;
- protection of vulnerable population groups;
- guarantees of fair work and payments to players in full.
- Other requirements:
- establishment of a local company in accordance with Act 2006 or Act 1931;
- appointment of at least 2 directors — natural persons, local;
- selection of an authorised resident official located on the island or an operational manager (local) if the first is unable to remain in jurisdiction;
- player registration on the Isle of Man servers;
- placement of gaming and trading accounts in banks of jurisdiction;
- the presence of a business plan that reflects information on financial accounts, ownership structure, game rules, internal audit procedures, payment schemes, etc.
The following documents must be sent to the authorised bodies:
- declarations for directors, shareholders and beneficiaries owning 5% or more of the company’s shares – with letters of recommendation from an auditor / lawyer;
- business plan and financial performance projections, prepared based on a model approved by the Gambling Supervision Commission (GSC);
- a gaming system verification certificate approved by the Maine Test Centre;
- an RNG certificate if a random number generator is present.
It takes about 2 months to collect documents and prepare a business plan. After the submission of documents to the GSC, a meeting with the company directors is held within three months. Another 1-2 weeks, and the license is then issued. After that, the company has 9 months to launch operations.
The cost of obtaining permits for online casinos on the Isle of Man is £ 1,000. An annual licence-extension fee is to be paid that is equal to GBP 35,000 for a full licence and GBP 5,000 for a sublicense.
Issues to do with Taxes
The jurisdiction has a zero corporate tax rate. This applies to all profits of the company, except:
- profits from property / land management activities on the Isle of Man;
- retail business in the jurisdiction;
- certain banking activities.
Profits earned from these types of activities are taxed at a rate of 10%.
Companies conducting gaming activities are exempt from VAT.
To establish a profitable and legitimate online business, Prifinance experts will help in setting up the activity. Our specialists are well informed of all the details of registering a gambling business. We can thus guarantee strict compliance with the laws of the jurisdiction.