The Isle of Man – a mecca for gambling.
The Isle of Man has earned the reputation of innovative business jurisdiction. Regulation on the Island supports and promotes digital business industries. The Government actively encourages the development of blockchain gambling and e-gaming and, together with the private sector, has worked hard to ensure that the Island has a world-class infrastructure and a full range of services for the gambling industry.
Modern digital legislation contributes to this as well, which in particular:
- Puts digital currencies under AML legislation;
- Allows digital currencies, virtual goods, and other digital assets to be deposited, withdrawn, and gambled;
- Offers to license blockchain-powered lotteries using smart contracts;
- Licenses skin betting under regulation protecting RNG integrity;
- Proposes elective B2B Software Supplier License;
- Provides support to businesses utilizing innovative technologies, such as blockchain.
So, has the Isle of Man stepped over other countries in developing legislation toward the gambling industry? Let’s consider the unique gambling regime on the Island.
Gambling licensing regime in the Isle of Man
Isle of Man offers a simple and straightforward licensing regime ensured by Gambling Supervision Commission (GSC), in particular:
- B2C licenses cover all gaming verticals;
- Processing of application by the regulator proceeds for 10-12 weeks;
- The application fee is £5,000;
- Cryptocurrency and digital assets are viable as stakes/deposits/withdrawals across all licenses.
The Island has a low betting duty of gross gaming profit:
- For gross profit <£20m – 1.5%
- For gross profit £20m-£40m – 0.5%
- For gross profit >£40m – 0.1%
One more massive plus towards the Island – taxes. Corporate Income Tax, Capital Gains Tax, and Inheritance Tax are 0%. Additionally, different types of financial aid are available for companies that seek to create jobs on the Island. It includes grants, loyal loans, and equity purchases with an exit plan.
Levels of B2C permissions on the island
If the business model of gambling operators involves registering players and taking bets, a requirement to obtain a B2C license appears. There are 3 levels of permissions: Full License, Sub-License, and Network License.
Full (“standard”) License holders should register their players and keep their player data. They are responsible for AML/KYC obligations relating to them. The license costs £35,000 with the right to provide either Sub-license or White Label services.
Sub-licensees must enter into an agreement with a Full license holder to offer games they have produced in-house or games the Full license holder offers. However, the Sub-license fee is £5,000, providing the right to offer White Label solutions.
Network license operates the same as a Full one. However, it provides more B2B options. Network licensors can enter into agreements with other operators – Network partners – in other jurisdictions. Network license holders can then allow the Network partner’s registered players to play their games without being required to reregister them, particularly without AML/KYC responsibilities. Obtaining of Network license costs £50,000.
The competitive B2B solutions in the world gambling market
B2B gaming solution on the Island is presented by a Software Supplier license (SSL). Many software businesses choose SSL on the Island of Man to demonstrate adherence to top-tier standards, thus reassuring B2B partners such as operators, banks, payment processors, and others. Holders of SSL can have their products listed as approved on GSC’s website; thus, B2C operators can deploy these games on their site without needing RNG certification.
There are two types of SSL:
1. Standard fiat platform – £35,000;
2. Blockchain-enabled platform – £50,000.
For blockchain-enabled platforms, applicants must meet the following conditions – the application must prove to understand the used technology, tokens must be available, and a news blackout will be enforced throughout the application process to prevent attempts to inflate the value of tokens.
The Isle of Man is highly desirable and accommodating as a place to launch own business. It has many interesting B2C and B2B solutions that can’t be found in other gambling jurisdictions. Digitalization and innovation significantly distinguish the jurisdiction and make it attractive for modern gambling operators wishing to combine gambling with blockchain. Loyal and attractive legislation and regulation allow for organizing modern business in the best way.
Obtaining a gaming license in the Isle of Man
The SBSB legal team is always happy to assist you with your license application in the Isle of Man by providing “turnkey services”: preparation of necessary documentation, opening a corporate account, a connection of a merchant account, and full legal support until obtaining a license, filing of financial statements. Please use the “get consultation” button at the bottom of the page to apply or sign up for a consultation.