The Isle of Man is one of the most attractive jurisdictions for establishing an online gambling business. The state was the first offshore company to include its regulation in its law (2001), and over the years has significantly improved the regulatory framework. The island belongs to the British crown; it is a prestigious jurisdiction with which most contractors and banks around the world work.
Observance of the rights of players is closely monitored by the National Commission. Therefore, the casinos registered in Maine have a good international reputation. The island is included on the whitelist of the UK, OECD, and is a member of the WTO.
Among the other advantages of jurisdiction are:
- the absence of division into class subtypes means that applicants need to submit a single set of documentation for all gambling activities;
- you can get a sub-license of the Isle of Man: online casino will operate on behalf of a major brand, and later will be able to function separately;
- a variety of types of gambling ‒ there is stock and sports betting, casinos, sweepstakes, fantasy games, lotteries, financial trading (certain types), Internet services and so on;
- stability of legislation ‒ it is British, and in addition to belonging to the European Community and the opportunity to advertise themselves in the United Kingdom, the jurisdiction provides an opportunity to employ liberal and well-structured norms;
- well-developed telecommunications infrastructure — MPLS networks with high bandwidth are deployed, which provides international connectivity, advanced data processing centres with reliable protection and resistance to DDoS attacks, 4G broadband communication is available.
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.
- 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.