Why do you need a gaming license?
Each gambling operator wants to run his business legally, appear serious and safe for players. It is impossible without having a license. This document is a key to launching a successful gaming website. License holders can use widespread payment systems, buy official software and games directly from developers, cooperate with banks and manage corporate accounts. Also, a permit is a guarantee of your reliability for other operators and different potential partners.
Continue reading to know more about the prestigious license, whose value is recognized by the gaming community around the world.
How to get an Isle of Man Gambling License
An online gaming license of the Isle of Man is a synonym for quality, which is why so many operators set their sights on this offshore jurisdiction. Even though the application process here is sophisticated, the local legislation surrounding the gaming sphere has created a very advantageous environment for gambling development.
Isle of Man Gambling Supervision Commission
The Gambling Supervision Commission was founded in 1962 as a land-based gambling regulator. Later, the body also started to control virtual casinos’ operation. For this purpose, the Online Gambling Regulation Act 2001 was created. This legal document was one of the first such documents in the world.
The regulation of iGaming on the island is becoming more restrictive over time, due to circumstances related to the increased promotion of fair gaming. The good news is that these changes only increase the unquestionable reputation of the country and, accordingly, the holders of the local permit.
Types of Isle of Man gambling license
Gambling business owners who want to legalize their casino or betting company on the island should choose what license they need. The Isle of Man’s Gambling Supervision Commission offers several permits:
With this permit operator can offer online gaming and offer other operators a white label solution.
A sublicense is a convenient, low-cost option for inexperienced operators. It is suitable for operators who have their own potential client base but do not have gaming content. Operators who hold this permit can use the technologies of the main license holder and provide virtual gambling on their platform.
This permission grants its holders the same rights as a full license. In addition, this document allows its owners to enter into agreements with other operators and engage players who are located outside the Isle of Man, eliminating the need to re-register user data.
B2B Software services licensing
Obtaining a software license is optional. Getting it, however, greatly improves the reputation of developers within the jurisdiction.
Isle of Man gaming license cost
Application fee is common, and it is £5,000. In the table below there are yearly payments for different permit types.
|B2B license (blockchain)||£50,000|
Taxation in the Isle of Man
The Isle of Man is characterized by a competitive tax system. Taxes vary depending on the platform’s revenues and can be from 0.1% to 1.5%.
Requirements for applicants
- It’s mandatory to open a physical office in the jurisdiction;
- Your company should have 2 directors – residents of the country;
- All servers must be placed on the island;
- Applicant is obliged to open an account in the local bank;
- The presence of the authorized capital is obliged;
- Info about gambling addiction and local legislation must be placed on the website;
- According to the Online Gambling Regulation Act 2001 (OGRA), user deposits must always be protected;
- A detailed business plan should be prepared.
- Certificate of no criminal record
- Notarized copies of IDs
- Bank statements
- Copies of utility bills
- Info about games on your website
- Availability of RNG certificates provided by a third party
- Software description and TST report
- Info about audience locations
- Confirmation that minors are not allowed to access the site
LicensingAid experts will help you to compile a complete list of required documents in your particular case. This is important because the more accurately all the requirements of the regulator are met, the more chances there are for a positive decision on the application.
Licensing timelines and validity
The consideration process can take about 3 months. However, if you make mistakes or forget to attach some information, the processing time can increase. Be prepared for rigorous and detailed inspections and tedious red tape. The validity of local licenses is 5 years. After the expiration date, you can prolong the permit.
Advantages of getting a gaming license in the Isle of Man
The Isle of Man gambling license has many significant pros:
- Low taxes;
- Support from the local government;
- Wide geography of coverage markets;
- Long-term permit;
- All-in-one permit for numerous gambling activities;
- Local licensees are eligible to operate in the British market;
- Highly skilled and multilingual workforce;
- Developed telecommunication infrastructure, which ensures uninterrupted operation of websites;
- An opportunity to legalize blockchain lotteries;
- No currency control.
Among the few cons of a permit, there are rather high costs for its acquisition and the strictest control over business activities by regulatory authorities.
Obtaining a license is undoubtedly your best investment in the early stages of creating an iGaming business. If you decide to legalize your platform on the Isle of Man, you won’t regret it. Nonetheless, before submitting an application form, learn all the info about this jurisdiction’s requirements. You can explore the Online Gambling Regulation Act 2021 by yourself or contact our specialists and get expert advice. LicensingAid lawyers can support you during the whole procedure and promptly resolve any issues that can arise.