The Isle of Man is the part of the British Crown. It is one of the oldest and authoritative gambling licenses body. Gambling legal framework is based on the Electronic Transactions Act adopted in 2000 and on the Online Gambling Regulation Act. Due to the latter, gambling business was legitimated on the Isle territory in 2001. In June 2001, first gambling license applications were submitted.
The Gambling Supervision Commission (GSC), founded in 1962, controls and regulates gambling industry. Currently, it is based on the modern legislation, which corresponds with all international online business developing regulations. The Commission is responsible for issuing licenses, protecting players’ rights and interests, creating positive jurisdiction image.
Types and costs of the Isle of Man licenses for online casino
The Isle of Man jurisdiction issues three types of licenses:
- Full OGRA license: the license is issued for 5 years. The initial payment is £5,000, annual renewal is £35,000. This license covers the following kinds of gambling activity: sportsbook, betting exchanges, online casino games (roulette, blackjack, slots, etc), peer to peer games (poker, bingo, backgammon, Mah-jong, etc), lotteries, mobile phone betting, pari-mutuel and pool betting, fantasy sport, financial trading etc.
- Sublicense: issued to operators who sign contracts with technology providers having the OGRA license. Issued for 5 years, the registration fee is £ 5,000; the annual renewal fee is £5,000.
- Network license: this license allows players, registered out of Isle of Man platforms, to play on local servers without repeat registration. The application cost is £5,000; the annual payment is £5000 and £5000 for the networking partner.
The Isle of Man gambling taxation
The gambling tax rate depends on the gambling company annual net income:
- up to £20 mln – 1.5%;
- £20-£40 mln – 0.5%;
- over £40 mln – 0.1%.
The pool betting tax rate is 15% from player’s pool.
Requirements for licensees
The Isle of Man GSC was the first to begin licensing online gambling venues. It has gained its authority due to strict requirements to applicant companies and high players’ rights protection. The Commission has a right to refuse the company, if suspects that this company is fake and nominative, opened only for the purpose to get into the British whitelist and to promote its services.
The main requirements for licensee companies:
- The company must be established on the Isle of Man.
- At least 2 local Directors must be individuals not corporate entities.
- At least one resident Designated Official (DO) must be appointed.
- Players must be registered on Isle of Man servers or operate under the Isle of Man Network Services License.
- All banking accounts must be opened on the Isle of Man.
Isle of Man license advantages for gambling
- Online casino with isle of Man license its prestige for players’ high credibility.
- One license is issued for all kinds of gambling.
- A chance to get the Sublicense – small casinos can work under famous gambling brands and obtain the full license in future.
- European guaranties and security, firm economic and political environment.
- Liberal legal framework.
- British whitelist.