One of the first jurisdictions in the world to offer gaming licenses, Isle of Man is by now also one of the most prestigious jurisdictions for this license. Multiple reputable gaming sites hold an Isle of Man gaming license and the jurisdiction has an excellent reputation, among players, partners, service providers and regulators alike, making it an excellent choice for many looking to regulate their gaming business.
About the gaming license in Isle of Man
Gambling licenses have been offered in Isle of Man,a British Crown Dependency located between Britain and Ireland in the Irish Sea, since 1962, when the Gambling Supervision Commission of the Isle of Man introduced it. The jurisdiction is credited by some for introducing greater player protection measures, and is known for actually encouraging online gaming companies to be based in the Isle of Man.
Changes to the license occur regularly, both when it comes to policies and regulatory controls, and the regulator is considered to be one of the more thorough ones.
The main benefit of the license, besides its stellar reputation is, however, its simplicity. Only one license is needed and offered, and this license covers all gaming and gambling activities offered, unlike in some jurisdictions where different game types require different licenses.
Tax for online gaming companies in the Isle of Man
Since 2005, online gaming companies pay no corporate tax in the Isle of Man, a fact that has naturally only added to the allure of the jurisdiction. Furthermore, the tax on gross gaming yield is up to a low 1.5 %.
(For gross gaming yield or retained profit not exceeding GBP20 million per year it is currently 1.5%, for gross gaming yield or retained profit of more than GBP20 million per year, but not exceeding GBP40 million per year it is currently 0.5% and for gross gaming yield or retained profit exceeding GBP40 million per year it is set at 0.1%).
Other benefits of this jurisdiction
Some of the other benefits associated with Isle of Man are the excellent infrastructure (internet, telephone – both fast and reliable), an English speaking, highly educated workforce with iGaming specific knowledge, including in peripheral industries such as marketing, and the stability of the jurisdiction.
What types of companies can particularly benefit from an Isle of Man gaming license?
While an Isle of Man gaming license is a very attractive licensing option for most in the online gaming business, we would say it is particularly attractive for those who have any UK links, but still are in need of an offshore jurisdiction, and/or would want to be listed on the UK stock exchange.
It should also be mentioned that the regulators in Isle of Man are looking to develop the jurisdiction when it comes to regulation of blockchain, cryptocurrencies and AI, making it an excellent choice for those active in any of those industries, besides gaming, as well.
The application process
Anyone interested in applying for an Isle of Man must pay a non-refundable fee, currently set at 5,000 GBP, and then be thoroughly vetted and inspected by the regulator. Fairness in the games must be demonstrated and proved, and the operator must commit to putting aside money for payouts and to having an independent software testing house test its software.
The annual license fee is currently 35,000 GBP, and the license is valid for 5 years, after which it will need to be renewed.
An Isle of Man incorporated company is required in order for the application to be possible, as are 2 local directors (Porat Group is able to assist with both matters if this is not a reality for the company today) and processing the applications take multiple weeks, this is not a “faster than usual” option.
Other requirements for Isle of Man gaming license holders
Like in most other jurisdictions, reporting requirements to the regulator are in place and all operators holding gaming licenses in the jurisdictions are required to abide by them. License holders also commit to adhering to the anti money laundering policy in place in the jurisdictions, including all internal procedures, record keeping etc.
How Porat Group can be of assistance for those interested in an Isle of Man gaming license
While Isle of Man is a gaming jurisdiction held in great esteem by players all over the world, and offers many benefits to license holders, the licensing process can seem both complicated and intimidating for applicants. That is precisely the reason why so many Porat Group clients appreciate our services that assist license applicants with the entire licensing process, from deciding if the Isle of Man is indeed the best choice for a gaming jurisdiction in each individual case, or if there is a better option out there, to submitting all the needed documents and contacting the regulator and so on.
The Porat Group team can also assist with all corporate matters, compliance matters and introductions to various service providers and partners, such as software providers, banks and payment solutions (b2b and c2b wire solutions, credit card processing, alternative payment solutions – crypto, etc.), as well as assistance with operational, strategic, and management aspects of your business, and so on, depending on each client’s unique needs and requirement, making us a true one stop shop for everything Isle of Man a gaming corporation may need.
So if you are considering gaming licensing in the Isle of Man or already know this is something you want to do, let us help you! Contact us to get started and to book an initial consultation on the matter today.