Why do you need a gaming license?
Currently, the gambling industry is growing and blooming. Developing a business in this sphere is not only profitable but also interesting and promising. Every year, hundreds of new operators enter the gambling market, and all of them start their journey by obtaining a gambling license. Why can’t this step be skipped?
Each gambling operator wants to run his business legally, and appear serious and safe for players and colleagues from the gambling industry. It’s not possible without having a permit. This document is the key to launching a successful gaming website. License holders can use widespread payment systems, buy official software and gaming content 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.
Keep 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. The Isle of Man government supports gaming establishments in different ways. Moreover, many newcomers are attracted by the absence of corporate tax for the gambling business on the island. Local gambling establishments pay only the so-called gaming tax, the rate of which depends on a gross gaming yield.
Isle of Man Gambling Supervision Commission
The Gambling Supervision Commission GSC was established in 1962 as a land-based gambling authority. Later, the body also started to control virtual platforms’ operation. For this purpose, the Online Gambling Regulation Act 2001 was created. This document is considered one of the first legal acts for the gambling industry ever.
The regulation of iGaming in the country 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 owners 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 GSC offers several permits:
With this permit, an 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’ssuitable for those who have their own potential client base but don’t have gaming content. Operators who hold this permit can use the technologies of the main license owner and provide virtual gambling on their platform.
This permission grants its holders similar rights as a full one. In addition, this document allows its owners to enter into agreements with other operators and engage gamblers who are located not in the Isle of Man, eliminating the need to re-register user data.
B2B Software services licensing
Getting this permit is optional. Obtaining it, however, greatly improves the reputation of developers within the jurisdiction.
Isle of Man gaming license cost
The price for the application is commonly set at £5,000. In the table below, there are yearly payments for different document types.
|B2B license (blockchain)||£50,000|
Taxation in the Isle of Man. Gross gaming yield
The Isle of Man is characterized by a competitive tax system. Local operators do not pay corporate tax, only the gaming one. Its rate varies depending on the platform’s revenues and can be from 0.1% to 1.5% of gross gaming yield.
Requirements for applicants
- It’s mandatory to open a physical office in the country;
- Your business should have 2 directors – citizens of the country;
- All servers must be placed on the island;
- An applicant is obliged to open an account in the local bank;
- The presence of the authorized capital is obliged;
- Info about casino 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 must be prepared.
- Proof 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
- Games description and TST report
- Info about audience locations
- Confirmation that minors are not allowed to access the site
Compiling a complete list of required documents is important because the more accurately all the requirements of the body are met, the more chances there are for a positive decision. The Isle of Man government strictly monitors compliance with all mandatory rules and doesn’t want to license unscrupulous or suspicious operators.
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 by applying to the Gambling Supervision Commission, GSC.
Advantages of a local license
The Isle of Man gambling license has several significant pros:
- Unquestionable reputation in the gambling industry;
- No corporate tax, low gaming tax (0.1% – 1.5% of gross gaming yield);
- Support from the Isle of Man 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 closest control over gambling activities by regulatory authorities.
Obtaining a permit is undoubtedly your best investment in the early stages of creating an iGaming business. If you decide to legalize your website on the Isle of Man, you won’t regret it. Nonetheless, before submitting an application form, learn all the info about this location’s requirements. You can explore the Online Gambling Regulation Act 2021 by yourself or contact specialists and get expert advice.