Gambling license in Isle Of Man

The Isle of Man is one of the best jurisdictions for launching a gambling business and conducting subsequent legal activities. Experts from SBSB Fintech Lawyers recommend this offshore solution for your business launch. The Isle of Man rightly enjoys a prestigious reputation and is known for its strict, yet transparent regulation of the industry and for creating attractive conditions for foreign licensees.

Regulation of Gambling Business on the Isle of Man

The Isle of Man is a Crown Estate of the UK but has its own self-regulatory bodies, so the gambling industry is not directly regulated by UK law. Since 1962, the Gambling Supervision Commission (GSC) has been operating here. The independent regulatory body is responsible for the licensing procedure, as well as for protecting the interests of players and advocating for fair operator practices. The organization was one of the first in the world to initiate online gambling licensing in Isle of Man, not just land-based casinos. To regulate this sphere, the Online Gambling Regulation Act (OGRA) was adopted in 2001. Among the regulatory acts are separate provisions on advertising, fees, network services, licensing fees, and other aspects of online casino operations.

Types of Gambling Licenses on the Isle of Man

In this jurisdiction, you can obtain four types of licenses. When choosing the right solution, you should consider the Isle of Man gaming permit that best suits the business model of your project:

• a full license is intended for B2C. This solution allows storing information about platform users, using the White Label sales model, and cooperating with sublicensees;
• a sublicense is suitable for projects that have compiled a list of potential players but do not have their software and, as a rule, finances for obtaining a full license;
• a network license differs from a full license in that it allows operators to skip the additional registration step when players from casinos licensed by another jurisdiction come to their platform. That is, users do not undergo the KYC and AML procedures;
• a B2B license allows developers to supply their software (including based on blockchain technologies) to Isle of Man licensees.

Advantages of Isle of Man Gaming License 

Among the current IOM GSC licence holders are more than 80 companies that have received a full OGRA license. SBSB experts recommend that companies should choose this jurisdiction for licensing for several reasons:

• the license is issued for 5 years and its functionality covers all possible varieties of gaming verticals;
• thanks to a favorable tax regime, the gambling profit tax rate is 0.1–1.5% (the final figure depends on the size of the annual gross profit). A zero tax rate is set on capital gains;
• the regulator has a pragmatic approach, so there are no restrictions on countries for operating under the license. The main condition is to operate in countries where international online gambling is allowed. Companies can expand their business, attracting players from different parts of the world;
• programs for financial support of entrepreneurs have been created for relocating companies to the island or developing a project after obtaining the Isle of Man regulatory approval for gaming. Special grants and investments are provided for projects that use blockchain technologies;
• local legislation allows the use of digital currencies and other virtual assets as a payment method in gambling.

How to Obtain Isle of Man Gambling License

GSC is considered a strict regulator with strict requirements. Despite the duration of reviewing the submitted document package and the number of conditions, licensees with such jurisdiction are valued by partners, clients, and the entire iGaming industry. According to Isle of Man gambling regulations, during the licensing process, you must comply with the following conditions:

• register the company on the island and open a local bank account here;
• the management team must include two local directors;
• develop a business plan;
• collect notarized copies of documents and certificates of no criminal record from the owners of the company and the confirmation of beneficiaries’ sources of income;
• describe the games that will be featured on the platform, as well as the software;
• the games must be certified in specialized gaming labs;
• develop and implement KYC and AML policies;
• pay the mandatory application fee;
• place servers on the jurisdiction’s territory. If this condition is not met, a network license is required.

Isle of Man Gambling License Cost

The cost of registration may vary depending on the project and gaming verticals, the number of gambling games covered by the license’s functionality, and additional services related to the licensing procedure. When choosing a jurisdiction and type of license, SBSB specialists take into account the features of the project. For more detailed information on the cost of registering your project, contact the SBSB Fintech Lawyers team!

Why You Should Turn to SBSB Fintech Lawyers Experts for IOM Gaming License

The SBSB Fintech Lawyers team has been providing comprehensive legal support for fintech and gambling projects since 2013. Our team helps obtain licenses for all types of gambling in different regions of the world. We provide “turnkey” services — from preparing the required document package and opening bank accounts to legal support after licensing and launching a gambling business.

If you need to obtain an Isle of Man gaming licence, contact our specialists! SBSB experts will advise you on all issues of interest.