Isle of Man Gambling Licensing: Establish a Profitable Business
Legalization is an important stage for the establishment of a business both in the land-based and online gambling sector. The activity which is illegal can make operators lose a lot of money and their reputation.
Smart Money recommends you to pay attention to the Isle of Man casino option. It is possible for you to order a permit, the installation of software, and integration of the video content.
This isle is a territory of the UK but it has autonomous legislative and executive branches. Local authorities independently determine the economic environment (taxes, regulations, legal framework), trying to make it attractive to foreign investors.
The jurisdiction became the first zone in the world to allow gambling activities on its territory, including games with live dealers (in 2009). The controlling authority was created in 1961. In 2001, the institution was transformed into the Gambling Supervision Commission. Thanks to this reform, it was possible to launch the successful legalization of the online casino business.
Isle of Man gambling establishments seem attractive to entrepreneurs from every corner of the world because of the most favourable terms that such a country can provide for the licensees.
This offshore zone has many advantages:
Prestige value. The document issued by the Commission bears evidence of the reliability and excellent reputation of an operator. Gamblers are not afraid to place bets in such a virtual casino, and partners are willing to enter into mutually beneficial agreements with such a company.
Stability. The territory is distinguished by a good economic and political situation. The exit of the UK from the European Union did not affect the licensing procedure or the rights and obligations of business entities.
Simplicity. The Isle of Man, where the casino business is growing rapidly, offers one license for all types of gambling entertainment. The rule is applicable for both land-based and online locations.
Fast launch. Legalization is simple and understandable even for the beginning operators. For entrepreneurs with vast experience, the implementation of new projects will not be a problem anymore as well. A good solution would be to buy a sublicense, which significantly speeds up the entrance to the market.
Cost optimization. Expenses for the completion of all the legal paperwork are offset by a minimum tax burden. This feature guarantees financial saving and the ability to spend money on the improvement of other aspects of the business.
Unlike most other jurisdictions, this regulator does not divide legalization into categories (for online casinos, bingo, and bookmaking). Such an approach greatly simplifies and speeds up the business registration, which increases the interest of many entrepreneurs.
Operators can obtain 3 types of permits:
The main license
It is issued for online gambling activity and allows you to work with different areas of the industry: betting, lotteries, slot machines, and casinos.
Obtaining a license for poker on the Internet in Isle of Man is also included in this category: the government provides a good environment for the development of websites that specialize in card games.
Companies applying for such a document must be able to grow without the help of other firms.
independent development of software;
creation of the game content;
conducting of advertising campaigns
It is a simplified version of the basic legalization method with some adjustments.
The difference is that this document gives operators the right to work under the patronage of the holder of the main license and use his software, the game content, and server equipment.
The provision of services under a franchise agreement or under the White Label scheme is based on this option. This approach is especially beneficial for beginning entrepreneurs who are trying to get their foot in the door in the industry and have a small initial capital
This is a casino license of the Isle of Man, which is issued in addition to the main permit. Operators use it to expand the geography of the target audience.
Players outside the island can access entertainment without having to re-register their accounts. The gambling platform legally operates in the .com domain zone, attracting a large number of active users and interested partners
These parameters vary depending on the type of a certificate that was chosen by an operator:
The main gambling permit of the Isle of Man is valid for 5 years. The state duty for the consideration of an application is 6.2 thousand dollars (5 thousand pounds). Even if the Commission has made a decision not to grant a license, the payment will still be non-refundable. Those who obtained a permit will have to pay for its annual renewal (43.8 thousand dollars or 35 thousand pounds).
Period of validity of the sublicense corresponds to the term of the main license — 5 years. The size of the state duty remains unchanged. However, the annual renewal is less costly — 6.2 thousand dollars.
The network permit is valid for 5 years. In addition to the initial and annual payments of 5 thousand pounds, the licensee will need to pay the same amount per year for each attracted provider.
The Isle of Man gambling licensing has many advantages, including reasonable fiscal duties and simplified mechanisms for calculating them. This is a good option for those entrepreneurs who want to legally reduce costs on business operations.
Features of the local taxation:
Absence of a number of penalties. Casino owners are excused from VAT, customs duties (for example, for the import of server equipment), percentage of the withdrawn funds, and other deductions to the budget.
Progressiveness. The government motivates companies to earn more in order to pay lower taxes. Those businessmen who have received from 49.9 million dollars (40 million pounds) as the net profit per year, should pay to the jurisdiction 0.1% of their earnings. Their colleagues with lower dividends transfer 0.5% to the public treasury. Legal entities with revenues of 24.9 million dollars (20 million pounds) pay more — 1.5% of their revenues.
The only exception is the taxation of a sweepstake. Entrepreneurs pay 15% of the gamblers’ prize pool regardless of the size of the total profit from the betting activity.
Requirements for the licensees who want to obtain a permit:
Registration of a legal entity in the Isle of Man with the appointment of 2 locals as CEOs. The competence of the company’s management team is carefully checked by the Commission.
Opening of an office and an account in a commercial bank on the territory of the island.
Placement (hosting) of software on a local server.
The presence of signed agreements with certified providers of gambling software. For slots with RNG, it is necessary to provide a special certificate.
Software reliability testing by external organizations (for example, such international laboratories as iTech Labs or BMM Testlabs).
Development of a layout for a casino licensed by the Isle of Man in several languages, which should include data on the provider, the rules of access to the gaming site, and the prohibition on playing casino games for minors.
After all the requirements are fulfilled, the company forms an application, adds to it a detailed business plan for 3 years, and sends the prepared package of documents to the authorized body. It is also necessary to provide a receipt for the payment of the state duty. The time for consideration of the application usually does not exceed 2—3 months.
This is a profitable offshore country, which is perfect for a successful launch and conduct of a casino business.
The jurisdiction offers operators the following advantages: simplified registration, low taxes, a consistent approach to all types of gambling entertainment.
An authorized commission issues licenses and considers applications for no longer than 3 months.
The most important things that operators should do include the registration of a company in an offshore zone, the acquisition of certificates of conformity, and opening of an account with a local bank.
The license can be ordered from Smart Money Studios where you can also find unique products for the gambling business. We can develop various types of online casinos: traditional, mobile, live, and VR. Obtaining a license for poker on the Internet in Isle of Man can be an excellent option as well. We also provide a high level of security for all the solutions.