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Establishing a Gaming Business on the Isle of Man
Since the creation of Spacestar in 1962 by an MIT professor, video games have evolved and become more and more sophisticated. Almost six decades after Spacestar, the video games industry has evolved to the point that it offers online games which can be played by hundreds of people in a match, such as Call of Duty, Fortnite or Free Fire.
The Gambling industry has also made it through the videogames era, developing online gambling games such as Pokerstars, a platform where millions of people play and win every day, just like in a real casino in Las Vegas. On the internet you can find dozens if not hundreds of sites where you can play and bet real money on Poker, 21st Blackjack, Bingo, horse races and many other types of gambling games.
Most of those sites are established in a handful of offshore locations that offer competitive advantages to operate. In this article we will introduce you to the ultimate place where you can establish your own gaming business: the Isle of Man.
This tiny island of 221 sq miles of extension is located in the Irish Sea, just between Great Britain and Northern Ireland. Even though it's under the reign of the British Queen, the Isle of Man is not part of the United Kingdom as it maintains an independent government and a parliament. This aspect is a key reason why we have become interested in this little island.
The Isle of Man is an independent jurisdiction with its own tax system and legislation. However, it enjoys a special relationship with the United Kingdom because it is still under the rule of Queen Elizabeth II.
Therefore, this small island enjoys a unique position to do business in the United Kingdom, as it presents an opportunity for escaping from capital gains and inheritance taxes. In a nutshell, we will tell you some of the extraordinary advantages that the Isle of Man has for you:
-A really low tax regime, being the personal highest tax rate only 20%, really low when you compare it to France or Germany. Furthermore, the corporate tax rate is zero!
-It's easier and less expensive to move to the Isle of Man than to other offshore destinations.
-A world class infrastructure and a high skilled labor force. Telecommunications are fast and reliable, a key aspect when talking to establish a gambling or e-gaming business.
Establishing your gaming business in the Isle of Man can represent a great opportunity for you. Below we will explain to you all you need to know on how to get your own gambling business on this small island.
What is a Gambling License?
First of all, we must define what a gambling license is. In simple terms, a gaming license means any accreditation, approval or authorization by the local government related to gaming, the gaming business or the operation of an online or physical casino, in accordance with the Gaming Laws for the site of operation of the business.
Gambling Licenses on Isle of Man
Thanks to its efficient tax framework, liberal legislation, simple application process, business-friendly environment, world class infrastructure and highly skilled workforce, the Isle of Man has become one of the ideal places for establishing an online casino.
Because of its well known high standards to ensure that casinos play by the rules, having an Isle of Man gambling license is a highly prestigious mark of quality, desired among online casino operators. Also this tiny island is a member of the World Trade Organization (WTO) and is on the OECD White List. It also pioneered the regulation of online gambling when in 2001 it issued the Online Gambling Regulation Act, aimed at supporting players as well as operations.
The Isle of Man also has an extremely competitive tax regime for gaming companies. The current corporate rate for this type of companies is 0%, as authorities established a gaming tax between 0.1% (if the business bills more than 40 million GBP a year )and 1.5% (for businesses that bill less 20 million GBP) than of the gross gaming yield. Another fact is that license holders can benefit from a zero capital gains tax.
The gaming business is a crucial sector of the Isle of Man economy. So on, they maintain an innovative approach for regulating the industry. One of its innovative steps have been:
-In 2001 it became the first jurisdiction to have an online gaming act.
-It licensed the first lottery based on blockchain.
-In 2019 the Isle of Man Blockchain Office was created to support Blockchain Businesses.
-In 2017 it allowed digital currencies to be deposited and withdrawn.
Types of Gaming Licenses on the Isle of Man
Even though each license covers all types of gambling, depending on your business model and the objectives for your company, you can choose between four types of gaming licenses. These are granted for a five year period a need to be renewed after this period.
1. The Standard License
This is the main license. It allows holders to operate B2C, register their own players and store data. Also, it allows them to provide other operators a White Label Solution, providing content, a platform and other business solutions. This license costs 35,000 GBP.
Full holders can also partner with other operators, being enabled to get a sub-license from the Commission for 5,000 GBP.
This option is ideal for operators that have no experience in the gambling industry but are preparing to create their own online casino. These licenses are granted on a reduced fee (5,000 GBP) and are tied to full license holders, allowing sub-licensee’s registered players to have access to the technology (software, games) provided by the full license holder.
3.The Network Services License
This license is similar to the Standard License, as it includes the same rights and obligations, but it also accepts players registered in casinos from other jurisdictions.
The network services license allows a swift migration of the player’s data from the foreign server to the Isle of Man server. It's necessary to include in the agreement the commitment for providing fair services. New partners must comply with the Isle of Man gambling laws.
This license opens a huge opportunity for operators to reach new markets and users, and it costs 50,000 GBP.
4.The B2B Software Supplier License
Even though foreign suppliers don't need a license to provide software to Isle of Man licensees, it grants them a huge reputation to be on the Isle of Man network.
There are two types of this license: one for standard providers and other for blockchain providers, which was added after the creation of the Blockchain Office. The standard costs 35,000 GBP and the blockchain 50,000 GBP.
Suppliers must go through a testing process of their products in order to get certified and obtain a license by the GSC, as the Commission needs to demonstrate both operators and players compliance to its high standards.
How to Create a Gaming Business on the Isle of Man
For applying to an Isle of Man Gambling License, every shareholder, director or officer of the business must submit the following documentation and requirements to local authorities:
-Certificate of no criminal record.
-Copies of the passport. This must be notarized.
-A copy of utility bills
-A detailed business plan along with the description of the offered games.
-Details of the software that is going to be used for the gaming.
-A document that specifies the target market.
-Servers must be based in the Isle of Man.
All documents must be submitted to the Gaming Supervision Commission and have a certified translation if they are not in English. Also, documents can’t be older than three (3) months and be apostilled. The whole process is normally done between 8 to 12 weeks. The license is granted for a five years period.
What can we do for you?
In Mundo, our mission is to have our clients happy and with money coming to their pockets. That’s why our team of experts is always looking for new opportunities for our clients.
The Isle of Man has a friendly business-climate, political stability and an innovative legal framework. Creating a gaming business there can ensure you a great cash flow in the future.
In order to make your life easier, we have partnered with an Isle of Man based firm that can provide you with world-class advice when setting up a gaming business in this tiny island.
Having an online casino is now possible with Mundo, contact us now!
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