Isle of Man iGaming License Application Support

As a jurisdiction of choice, CSB Group can provide clients with assistance in establishing their remote gaming business along with guidance and support in obtaining the appropriate licence which would enable them to provide facilities for gambling and/or advertising in the Isle of Man.

As in all other services and solutions we offer, when it comes to consultancy services for our remote gaming clients, we are set to provide a total online gaming solution to interested parties, providing prospective clients with all the elements necessary for their successful gaming venture.

Isle of Man Gaming Jurisdiction

The Isle of Man has positioned itself as one of the leading jurisdictions of choice for regulation, location, and administration of online gaming companies.

As the HQ to some of the largest companies in the industry, the Isle of Man has proven itself to be a great location for head offices and one of the best jurisdictions in which to start-up or grow further.

With numerous benefits such as low Corporation Tax, low Gambling Duty (0.1% - 1.5%) and no Capital Gains Tax - Many large igaming operators have opted to establish their company in the highly respected Isle of Man.

The Island’s strong stance on player protection has significantly contributed to the Island’s great reputation. With an Isle of Man licence, you are proving to your players and potential investors that you are a very responsible operator with strong ethical standards and safeguards in place.

A jurisdiction that clearly always looks to the future, the Isle of Man is the first top-tier jurisdiction to create legislation allowing digital currency, and virtual items such as skins, to be used as a stake and prize. This legislation has been in place since January 2017, allowing licensees to be proactive and obtain an early advantage over operators regulated elsewhere.

In a global industry that is increasingly competitive with very high standards, the Isle of Man certainly offers an unbeatable combination: reputation, quality, and business efficiency.

The Isle of Man has earned the reputation of being a  ground-breaking regulator, always being at the forefront of new developments.

Recent examples include:

• Bringing digital currency under AML and Proceeds of Crime legislation (April 2015)
• Legislation allowing digital currencies and other digital assets and virtual goods to be deposited, withdrawn and gambled (Jan 2017)
• The licensing of the first blockchain powered lottery, run on Ethereum using smart contracts
• The licensing of the first operator to offer skins betting under regulations protecting RNG integrity and preventing under-age Gambling
• Introduction of elective B2B Software Suppliers Licence, including blockchain token platforms
• The launch of the Digital Accelerator Programme, providing support and guidance to businesses utilising innovative technologies, such as blockchain, through current and future regulatory environments
• The first International Business Centre in the world to create a regulatory structure and licence for debt and investment-based crowdfunding platforms.

Isle of Man iGaming Licence: Application Process & Support

iGaming in the Isle of Man is legislated by the Online Gambling Regulation Act 2001 (OGRA) and regulated by the Isle of Man Gambling Supervision Commission (GSC).

The regulations set out by the GSC are both general and company specific and set out to ensure the governing principles are adhered to.

The core principles that govern the legislation are to:

• Keep gambling crime free
• Protect the young and vulnerable; and
• Ensure that the facilities offered by licensees are fair and that players receive their true winnings

Gambling Verticals Permitted

The Online Gambling Regulation Act 2001 is flexible allowing all types of gambling under one licence. One licence will cover all operations, such as:

• p2p games like poker, mah-jong andbingo
• Casino games including slots
• Sportsbooks including exchanges
• Esports betting platforms
• Live dealer
• Lottery including messengers and re-sellers
• Pari-mutuel
• Fantasy sports
• Financial betting
• Mobile/desktop/tablet
• Cryptocurrency and digital assets permitted stakes across all verticals
• New models, verticals and games can always be accommodated through discussion with the GSC

Operator licences are available at three levels;

• Network Licence
• Full Licence
• Sub-Licence

CSB Group assists companies by providing them with a quick and simple licence application process that aims to provide you with a decision between 10 and 12 weeks from submission of the application; such a speedy process allows your business to be fully operational in a timely manner.

Points to consider for starting an iGaming business in the Isle of Man

CSB Group has established a dedicated team that is responsible for providing hands-on support to those who wish to apply and establish an iGaming business in the Isle of Man.

In order to gain an Isle of Man Online Gambling Regulations Act 2001 (OGRA) Licence, the following conditions must be met:

• A company must be incorporated in the Isle of Man
• There must be two local Directors
• A resident Designated Official (D.O.) or a resident Operations Manager
• All player registration must take place on servers located on the Isle of Man for B2C licensees
• An application fee of £5,000 is paid and all relevant application forms are completed
• Player funds must be protected at all times for B2C licensees
• All games, RNGs and gambling systems must be certified by an approved test house.
• Directors, D.O., Money Laundering Reporting Officers and beneficial owners owning 5% or more of the company will be subject to Due Diligence obligations.

Application Process

Once the GSC has received a complete application, it will typically process the application within 10-12 weeks. This period officially begins once the GSC issues a letter stating that the application has been accepted and the process has begun.  

CSB Group can help with many aspects of company administration, including company incorporation, recruitment, company structuring and providing on-Island Directors, MLROs, Designated Officials and Operation Managers.

Company Formation and Structure

We assist companies to incorporate entities via the Isle of Man Company Registrar. CSB Group can help with this process, advise on optimal company structuring and, if required, provide assistance with drafting Memorandum of Association and Articles.

Tax and VAT Solutions

Corporation Tax in the Isle of Man is 0%, companies should also be aware of VAT and Gambling Duty.

Gambling Duty

Gambling Duty on the Isle of Man is based on profit (not turnover). Duty is paid on either  ‘stakes minus winnings’ or ‘retained profit’ depending on the type of gambling activity. With approval from Customs and Excise, an operator may be authorised to exclude affiliate payments from their duty calculation.

Banking

The Isle of Man has a number of specialist banks that will work with the operator to provide international banking services. However, banking outside of the Isle of Man is permitted so long as the bank is Basel II compliant.

Software Testing

All RNG gambling software must be certified for compliance from an approved testing company before a licence will be granted.

The IOM GSC has recently introduced regulatory changes that will allow it to accept test certificates issued to other gambling regulators by approved testing laboratories, if the regulatory authority has entered into a Memorandum of Understanding with the GSC. The Isle of Man has such MoUs in place with Alderney, Denmark, Estonia, Jersey, Malta, Seychelles and United Kingdom which allow the GSC to accept certificates issued following testing to the standards in those other jurisdictions.

Server Hosting/Platform

Player registration must be hosted on the Isle of Man. Gameplay will preferably be hosted in the Isle of Man, although the GSC will be pragmatic and allow hosting elsewhere if there are sound business reasons for doing so. There is a selection of highly advanced data centres, experienced in hosting iGaming companies, to choose from on the  Island which CSB Group works with and can assist you with engaging during your licence application.