The Isle of Man is one of the foremost jurisdictions in the world to support a flourishing e-gaming industry. This is as a direct result of legislation passed to facilitate the growth of the industry, while simultaneously protecting consumers.
We’ve pulled together all you need to know about licencing an online gambling business in the Isle of Man in 2022 in this month’s Impact blog.
Licencing and regulatory legislation continues to address changes and developments in the industry, while a wide range of advantageous factors have consolidated the Island’s reputation as a stable and dynamic base for online gaming business.
The Isle of Man Gambling Supervision Commission (the Commission) is the Gaming Control Board of the Isle of Man. It regulates most forms of gambling in its territory including land based and online gambling services.
The Isle of Man was one of the first jurisdictions to offer legislation to regulate the activity of e-gaming companies and create a secure atmosphere for gamblers.
Here are four steps to becoming licenced in the Isle of Man:
- Get to know the legislation which you will need to comply with
The primary legislation regulating the online gambling industry is the Online Gambling Regulation Act 2001 (OGRA).
A copy of OGRA and its associated regulations can be obtained from the Commission’s website:
http://www.gov.im/gambling/licensing/
The legislation lays particular emphasis on three core principles of the Commission:
- Keep gambling crime free
- Protect the young and vulnerable; and to
- Ensure that the facilities offered by licensees are fair and that players receive their true winnings.
2. Do you need to be licenced?
OGRA excludes certain established activities from its scope despite their possible connection with telecommunication-related gambling activity.
The Commission offers the following types of licence, and you need to establish which of these is applicable to your business:
- Full Licence – provision of games and services to customers
- Sub-Licence – allows you to operate exclusively with an existing Full Licenceholder
- Network Service Licence – the same as a Full Licence but also allows Business to Business activity
- Software Supplier Licence – provision of software only.
3. Ensure you have a genuine presence on the Isle of Man
Operators who intend to establish a gambling business in the Isle of Man must satisfy the following criteria:
- They must establish an Isle of Man company
- Have at least 2 local directors, who must be individuals and not corporate entities
- Must appoint at least one resident Designated Official (DO), or where that Designated Official cannot reside in the Isle of Man, an Operations Manager (OM)
- Must either register players on Isle of Man servers or must operate under a network services licence which obliges them to establish the network services in the Isle of Man (Except in the case of software supply only licenses where no play must take place on Manx servers)
- Gambling and trading accounts should be located in a bank in the Isle of Man unless otherwise agreed.
4. Licensing Application Process for Gambling businesses in the Isle of Man.
The application process may take up to three months from receipt of a correctly completed application, supporting documentation and application fee of £5,000.00.
The following information should be included with the application:
- Full due diligence on the ownership structure, company officers and officials, shareholders, investors
- financial accounts
- ownership
- terms and conditions
- game rules
- internal control systems
- player protection
- technical checks on games offered
- the business model
- payment schematic
- the proposed banking arrangements
- customer due diligence
- website look and feel
- infrastructure checks & player registration checks
- treasury services
- transaction recording for games and lotteries
- transaction recording for sportsbook betting
- For software licensees only, an indication of the volume of software to be listed on the GSC register both at application and going forward
- Personal declaration forms.
When you receive your gambling licence you are required to maintain compliance with all relevant legislation from day one.
Compliance with legislation can be daunting especially after establishing a company and completing the application process. You just want to grow your business.
The consequences of failing to comply with legislation may be serious for you and your business.
Choosing to outsource some of the Officers functions can save you time, money and sleepless nights.
Choose Impact
Impact Professional Services is a pragmatic compliance and risk solutions provider based in the Isle of Man.
We support business through the initial licensing process and on-going compliance with legislation. Our expert team have an excellent understanding of the Commission’s licensing policy and will guide you through every step of the process.
Impact can assist:
- In the drafting of the initial application documentation and ensure everything is filed in a timely manner
- The creation of bespoke compliance documentation based exclusively on your business
- Identification of operational risks which could impact your business manner
- Prepare risk assessments as required by the Gambling (Anti-money Laundering & Countering the Financing of Terrorism) Code 2019
- In the provision of experienced staff to take on Director and Nominated Officer Roles.
Collaboration with Impact Professional Services will result in protection and peace of mind.
