How to get a gambling license in the Isle Of Man

The liberal legislation and competitive tax policy of the Isle of Man make it a very attractive jurisdiction for online gambling businesses. The Isle of Man gambling license is a true quality mark for an online casino, which makes it highly desirable among operators.

Gambling in the Isle of Man

The Isle of Man is located between England and Ireland and is known, in addition to its charming landscape and medieval architecture, for its strong, diverse, and low-tax economy. Although the Isle of Man is a dependency of the British Crown, it is not governed by British law and has its own parliament, legislation, and gambling regulator. The island is positioned as a leading jurisdiction for the location, administration, and regulation of the iGaming business.

The Isle of Man gambling control body, the Gambling Supervisory Commission, was established in 1962. With the massive and continuous growth of the online gambling industry, it has also become responsible for online activities. The Isle of Man became one of the first jurisdictions to regulate online gambling when it enacted the Online Gambling Regulation Act of 2001, which aims to protect players and support online casino operators.

While the island is increasingly open to accepting more and more investors in the gambling industry, the Commission’s standards have become stricter over time, thanks to increased support for fair and responsible gaming. The stricter the regulatory requirements, the more credible the licensee’s reputation is in the eyes of the gaming community and gamers.

What types of gambling licenses can you get in the Isle of Man?

Each Isle of Man license covers all types of gambling and is selected by companies based on their model and business objectives: whether they want to operate B2C or B2B and whether they own their own gaming content or, for example, only databases. data with potential players.

The Isle of Man license is granted for a period of five years and the Commission has the right to revoke it at any time if a breach of the terms is found. Depending on your business objectives and needs, companies may apply for one of 4 types of licenses in the Isle of Man:

1. Full License (OGRA master license)

This is the main, standard license. Full licensees can operate B2C, register their own players and store their data. They can offer other operators a white label solution, giving them a platform, content, and other business solutions, as well as relieving them of the need to adhere to the requirements of the Isle of Man themselves. They can partner with other operators and offer them games and software. Through this association, full license operators are not responsible for the administrative and legal activities of the operators, but allow them to apply for and obtain a sub-license from the Commission. Licensees can have any number of sub-licensees and will have to pay an additional fee of GBP 5,000 for each partnership. The full license covers the activities of the licensee’s parent company and its subsidiaries.

• B2C operation
• Collection and storage of player data
• Proprietary technology operation (platform and games)
• Ability to collaborate with any number of sub-licenses and provide White Label solutions

2. Sub-license

Operators who are inexperienced in the gambling industry, but who intend to enter a market and set up their own online casino, may opt for a sub-license. And sublicense is a good option for a company that has a database of potential players but does not have its own gambling products to offer yet.

Sub-licenses are granted on a fee basis and connect the sub-licensee to a full licensee with an exclusive agreement. Registered players of a sub-licensee will have access to the software or games provided by the full licensee. Even if the sub-licensee is connected by a fully licensed operator, he may at any time apply for his own full license and become a fully independent licensee.

• B2C operation
• Lower fee
• Collecting and storing player data
• The opportunity to collaborate with a full graduate
• Access to the full technology of the licensee (games, software, etc.)

3. Network Services License

This license includes the same rights and obligations as the full license, but network service licensees may also accept players registered at casinos licensed in other jurisdictions, omitting the re-registration process. This transition process will allow the rapid migration of player data from the source server to a server located on the Isle of Man and does not require KYC or AML checks, although the chosen partner is expected to comply with these policies. The terms of the contract are not prescribed, but it is necessary to include a commitment to provide fair and non-criminal services. There are no fees for adding new partner operators to the network, but their activities must comply with the Isle of Man gambling laws.

Because the network services license allows operators to accept players from other jurisdictions, it opens up great opportunities to reach new target markets and potentially expand databases with users.

• B2C operation
• Collection and storage of player data
• Possibility to accept players registered in other jurisdictions without re-registering their data
• Operation with own technology
• Opportunity to collaborate with any number of sub-licensees and offer White Label solutions

4. B2B Software Provider License

The software provider’s license is not required to provide software to Isle of Man licensees. Although licensing is not mandatory, suppliers around the world can benefit from the license because it gives them the prestigious reputation of the Isle of Man business network.

The Isle of Man offers two types of software vendor licenses: a license for standard fiat platform vendors and a license for blockchain-based software vendors. The latter was added in 2019 following amendments to the regulation on online gambling.

To obtain a B2B software provider license, vendor products must go through a testing process and be certified to be listed in the GSC game registry, demonstrating to operators and players that they meet high-quality standards. This will also facilitate the software integration process for Isle of Man licensees, without the need for additional certification.

• B2B operation
• Software/platform development and provision

Each Isle of Man license allows the use of all digital assets and currencies, including cryptocurrencies, and covers all types of iGaming verticals:

• P2P games such as poker and bingo
• Casino games, including slots
• Live dealer
• Sports books
• Financial exchanges
• Sports Betting
• Fantastic sports
• Lottery, including messengers and resellers
• Mobile, desktop, and tablet games

* We can discuss new options

GSC does not maintain a blacklist of countries where operators are prohibited from providing services, but Isle of Man licensees are prohibited from operating in markets where gambling is prohibited or operating in regulated markets without compliance. local. Thus, operators are required to seek legal advice on each jurisdiction in which they wish to operate and obtain GSC approval. It should also be noted that players residing in the Isle of Man must be able to use iGaming products from licensed operators.

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How to Obtain an Isle of Man gambling license

If you’re wondering why to select the Isle of Man gambling license, keep reading to find out why.

Many gambling operators are attracted to the Isle of Man due to its liberal legislation. The government recognizes the value and importance of the gambling industry and provides services to support gambling companies, including a modern telecommunications infrastructure so that operators can run their online casinos smoothly.

Both start-ups and experienced operators can get professional help and consult with legal and banking services, company administration, investments, marketing, software development, and other processes. Business support schemes in the Isle of Man include grants for micro-enterprises, equity loans, and investments, financing for business improvement projects, etc. Special grants will also cover moving your business to the Isle of Man.

In addition, the Isle of Man demonstrates a very competitive fiscal policy: there is a low tax on gambling, from 0.1% to 1.5% on Gross Gaming, and no tax on capital gains.

The jurisdiction is a member of the World Trade Organization and is listed in white by the OECD (Organization for Economic Co-operation and Development). Due to the comparable standards of fairness and safety of regulators, the Isle of Man license is also included in the white list of the UK Gambling Commission, which allows licensees to advertise their services in the United Kingdom.

The Isle of Man is considered to be one of the most innovative regulators in the gaming industry, and among the innovations introduced are:

• Legalize the digital currency under the Anti-Money Laundering and Crime Legislation in 2015
• Permission for digital currencies and other assets to be deposited and withdrawn in 2017
• Licensing of the first blockchain-based lottery
• Introduction of an optional license for software providers for blockchain and token platforms in 2019
• Opening of the Isle of Man Blockchain and Sandbox office to support the growth of the blockchain sector in 2019
• Building the world’s first International Business Center to work on the regulatory structure and licensing of debt and investment-based crowdfunding platforms

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The procedure for obtaining an online gambling license in the Isle of Man

Under the rules of the Online Gambling Act, 2001 (OGRA), the Isle of Man gambling license can be obtained from a company if it meets the following requirements:

• The company must be registered in the Isle of Man
• The company must have two resident directors
• A designated official or operations manager, either the same person as one of the directors, or a person who comes locally from a service provider, must be a resident of the Isle of Man.
• B2C licensees must register players on servers located on the Isle of Man
• An application fee of GBP 5,000 must be paid and all relevant application forms must be completed
• B2C licensees must protect players’ funds at all times
• All games, RNGs, and gambling systems must be certified by an approved testing house
• Directors, designated officials, money laundering reporting officers, and beneficial owners who control 5% or more of the company will be subject to due diligence obligations.

Moreover, because the Isle of Man online gambling license is considered a safe gambling jurisdiction, the licensee must comply with its policies, protect player funds, comply with the Advertising Standards Authority Codes, and the combating money laundering. Otherwise, a license may be revoked by the GSC at any time during the five-year period of validity.

To apply for an Isle of Man gambling license, applicants must demonstrate the transparency and credibility of their business. Thus, each person and company connected to the application will be subject to detailed, detailed, legal, and financial due diligence checks. GSC reserves the right to request additional information while assessing the applicant’s ownership, business model, terms and conditions of contracts, rules of the game, internal system controls, technical requirements, player registration, etc.

Processing the request can take between 10 and 12 weeks. However, the deadline may be extended if the application is not completed properly.

Here is a list of documents that must be provided in accordance with the Isle of Man licensing laws:

• Detailed business plan
• Description of the games offered
• Third-party RNG certificate
• Software description and technical system test report
• Description of the target market
• Confirmation that the servers are located in the Isle of Man
• Confirmation of the absence of a criminal record
• Copies of identity documents or passports
• Bank references
• Utility bills

*All documents must not be older than three months
*Documents must be provided for each authorized person

How much does a gambling license from the Isle of Man cost?

The Isle of Man license types and prices

Application Fee	£5,000
Full License	£35,000
Fee for each new partnership with a sub-licensee	£5,000
Sub-License	£5,000
Network License Covers	£50,000
B2B Software Supplier License	£35,000 and £50,000

* The fees for each type of license are due annually. The license is granted for a five-year period.

The Isle of Man’s gambling tax policy is highly competitive, which makes it a very attractive place to live and start a business. There is a 0% capital gains tax. The VAT rate is 20%, but online gambling is exempt from VAT on income, which also means it is not recoverable on expenses. The personal income tax and a gambling duty are applied as follows:

Personal income tax rates

The first £14,000	0%
The next £6,500	10%
After that	20%
The maximum per year	£175,000

Gaming duty rates (based on GGY or profit, not turnover)

Gross Gaming Yield (GGY)	Duty
Less than £20m	1.5%
From £20m to £40m	0,5%
More than £40m	0,1%

Are there any disadvantages of an Isle of Man gaming license?

The annual fee may seem high compared to other jurisdictions, but on the other hand, the Isle of Man license offers enough benefits that it’s worth the money. Since Isle of Man authorities highly values their safe, crime-free online business environment, there is also a high level of bureaucracy, stringent due diligence checks, and a lot of paperwork.