iGaming Licences on the Isle of Man: Strengths, Registration, Cost, and Taxes

This is a popular legalisation option in the online market. Business owners are happy to work here, choosing a transparent permitting procedure, clear legislation, and a loyal fiscal burden.

CASEXE describes the benefits of launching an iGaming start-up in the Isle of Man. We assist with licensing and promotion of online casinos, as well as offer turnkey projects.

Development of the Internet Gambling Field on the Island

The territory is located on the European continent, between Ireland and the UK. It is in the possession of Great Britain with its legislative system.

The jurisdiction is characterised by a reduced tax burden and a simplified procedure for registering companies. This attracts huge investments from all over the world and makes the Isle of Man a European business hub.

The state was one of the first to regulate the work of land-based casinos. A special regulator, GSC, was founded in the territory in 1962. For over 60 years, the legislature has issued hundreds of permits for stationary gambling halls.

Offline gaming is developing in close conjunction with tourism. Many architectural objects of the Middle Ages, attracting travellers from all over the world, are located on the island.

It has been possible to open licensed online casinos on the Isle of Man since 2001. At that time, the GSC adopted a special act for iGaming supervision. The document regulates the procedure for applying and outlines the principles of responsible gambling and other nuances of working in the gaming market.

What Types of Permits Does GSC Issue?

In 2023, entrepreneurs can buy four types of Isle of Man casino licences. Each document covers all key online gambling areas:

• sports betting;
• games with a built-in RNG;
• skill-based games (bingo, poker);
• eSports and fantasy sports betting;
• lottery draws and scratch cards.

Let us consider the types of documents:

Full License

It allows a businessman to manage any iGaming project on the Internet: a slot machine site, a bookmaker's office, a lottery portal, a bingo project, etc.

The Isle of Man’s gambling licence legalises:

• accepting bets from players over 18;
• the collection and storage of client information;
• the use of technologies (platforms and gambling content) of own production;
• the issuance of sub-permits;
• the sale of White Label platforms.

The key advantage of the Full License is the ability to enter into partnership agreements with other entities in the gambling industry. They may be new entrepreneurs or experienced businessmen wishing to enter the European market by obtaining a permit from the Isle of Man.

The owner of the Full License may transfer the gaming platform of its production to third parties. Besides, it also applies to its components (slots, gamer management systems, etc.). The fee for each new partnership is £5,000.

The advantage of cooperation under the White Label agreement lies in the fact that the Full License holder is not responsible for the juridical and administrative activities of the partner.

Sublicense

This type of the Isle of Man casino permit is suitable for novice entrepreneurs who are taking their first steps. The document links the operator to the parent company. At the same time, the businessman can apply for a Full License at any time.

The solution will be a good choice for entrepreneurs with a solid client base, who for some reason do not have access to a modern gaming platform with content. In this case, the operator can use the technical capabilities of the parent company and work in the legal field of British jurisdiction.

Network License

The Isle of Man online gambling certificate allows operators to accept bets from many European and Asian countries legally. The key requirement lies in the fact that gamblers must pass verification on the gambling site of the territory from which Internet traffic is redirected.

The migration of customer data from the origin server to the UK server must comply with international AML and KYC requirements.

The Isle of Man online casino certificate of this type gives all the same privileges as the Full License. These are:

• collection and storage of user information;
• accepting deposits;
• transfer of the gaming platform and copyright content to a third party under a White Label agreement.

Software Services License

The document is intended for software developers. These are companies that produce games, platforms, database management systems, payment services, and other solutions.

Before obtaining a licence for a casino on the Isle of Man, the entrepreneur should choose the type of application. The state issues 2 types of documents:

• For vendors of standard platforms. This is permission to develop and sell games with live dealers and built-in RNG, casino systems, and financial gateways.
• For blockchain content developers. The Isle of Man is one of the few territories that has legalised crypto gambling. Changes to the regulatory framework were made in 2019.

Gambling software must be tested and receive a conformity certificate. Independent evaluation is carried out by NMI, Gaming Laboratory International, QUINEL, iTech Labs, and other laboratories.

How to Receive the Isle of Man Casino Licence?

The state imposes strict requirements on applicants. However, it does not reduce its popularity among businessmen and investors.

The procedure for issuing a permit consists of the following steps:

The Isle of Man casino legalisation takes an average of 10–12 days from the moment the application is accepted and the registration fee is paid.

In some cases, the GSC regulator may need more time to comprehensively evaluate the operator's business strategy and the implementation model of the iGaming start-up.

How Much Does a Casino Licence Cost?

The permit is valid for five years. Fees are paid annually.

The cost of a certificate depends on the type of document:

Entrepreneurs do not have to worry about how much the Isle of Man casino certificate costs. The high fees are fully compensated by the minimal fiscal burden on businesses.

The list of the operator's main expenses uncludes:

1. Gambling tax. The percentage of deductions depends on GGR. The regulator offers a progressive taxation scale. The more an entrepreneur earns, the less money is transferred to the budget. The minimum rate is 0.1%, and the maximum figure is 1.5%.
2. VAT. The gambling business is exempt from value-added tax.
3. Income tax. It is paid by the final beneficiaries of the iGaming start-up, depending on the net profit received during the reporting period. The first £14,000 of the revenue are exempt from tax. For every £6,500 above this amount, 20% is charged.

Benefits of Launching a Gambling Project in the Jurisdiction

Consider the main reasons to order a turnkey casino with a licence from the Isle of Man.

Loyal Attitude towards Cryptocurrency

The territory was one of the earliest in the world to legalise the use of blockchain.

In 2017, the regulator allowed accepting deposits and paying out prizes in digital assets. This fueled investors’ interest in the island's gambling market.

In 2019, the body opened the Blockchain Office’s Sandbox. The department deals with the licensing of crypto companies and crowdfunding platforms. It also cooperates with businesses to improve the investment climate of the territory.

In 2019, the regulator amended the basic law on licensing projects. Thanks to this, producers of iGaming systems and crypto entertainment content will be able to receive the Software Services License through a simplified procedure.

Unique Emergency Recovery Program

The state provides technical and juridical assistance to enterprises that were forced to stop working in their regions due to a political or economic disaster.

In the event of force majeure, an iGaming project can be quickly relocated to a more peaceful territory. The Isle of Man’s gambling licence is issued under a simplified procedure (the Disaster Recovery program).

The entrepreneur can work under the permission of the previous territory for 90 days and only after that apply for a new document.

Wide Geography of Operating Markets

Obtaining a Network License allows entrepreneurs to legally accept bets from users of other states.

Sites operate under the .com domain address. The main requirement for operators is to locate endpoints for collecting information (servers and cloud storage) within the island. It is also critical to follow AML and KYC policies: verify payment senders and identify the age of gamers.

Minimum Fiscal Burden

The state offers a contestable taxation policy, which attracts experienced investors from all over the world.

The island has a progressive fiscal scale. This fact stimulates entrepreneurs to earn more, develop, and scale their businesses. The absence of taxes on dividends, real estate, and withdrawn capital also has a positive effect on the investment attractiveness of the territory.

International Prestige

The gaming commission puts forward strict requirements for the permit applicant. It is critical to create a guarantee fund for payouts and confirm the financial sources and the integrity of persons in key positions.

At the same time, the availability of a licence has a positive effect on the image of an online casino. Gamers and B2B partners understand that they deal with an honest and reliable company that has successfully passed numerous procedures and thorough activity audits.

The Main Things about the Isle of Man’s Gambling Field

The possession of the United Kingdom created excellent conditions for launching and scaling iGaming start-ups.

• The territory was one of the earliest in the world to regulate the entertainment sphere. Four types of permissions are available to businessmen: Full, Sublicense, Network, and Software Services. Each type of document applies to all spheres of web-based gambling: casinos, sports betting, lottery and bingo draws, as well as poker rooms.
• The main difference between document types is in the list of particular extra options. Full License owners can issue sub-permits and transfer their White Label platforms to third parties. The Network certification ensures that internet traffic from abroad is legally received. The Software Services License is intended for content producers.
• The strong points of the local legalising procedure include a loyal fiscal burden, the legal use of cryptocurrency, international prestige, and a broad geography of operating markets. The regulator launched the unique recovery project to relocate already working businesses quickly.

CASEXE will help you receive a licence from the Isle of Man. We will prepare the necessary papers, create a business strategy, take care of iGaming products’ certification, and advise you on the opening of a corporate entity and payment of taxes.

You can also order profitable iGaming projects from the studio:

• a turnkey online casino;
• a White Label platform;
• a Bitcoin casino;
• a VR gaming system, and others.