e-gaming How to base an e-gaming business in the Isle of Man Isle of Man e-gaming – A World Class Package A supportive and accessible Government combined with high quality professional services, makes starting up or moving to the Island a positive experience. A brief guide to e-gaming business in the Isle of Man Regulation and Legislation Not all gaming business activities require a licence in the The Isle of Man Government fully supports the growth of the Isle of Man. Activities such as marketing, software, skills e-gaming sector on the Isle of Man and there is a team within games and disaster recovery can be hosted or carried out the Department of Economic Development (DED) who are without any need for an Online Gambling Regulation Act responsible for providing hands-on support to companies and 2001 (OGRA) licence. This means that companies can be individuals wanting to do business in this sector. registered and have head office facilities in the Isle of Man while licensing elsewhere. If you are considering the Isle of Man as a licensing jurisdiction or are interested in what the Isle of Man could offer your The Gambling Supervision Commission (GSC) is the body business, please contact: responsible for regulating those gaming operators who require a licence in the Isle of Man. OGRA is the primary legislation Mr Garth Kimber and can be found with all the secondary legislation at Head of eGaming Development www.gov.im/gambling along with useful guidance notes on Department of Economic Development (DED) making an application. Isle of Man Government Tel: +44 (0)1624 682307 Mob: +44 (0)7624 464473 Email: [email protected] www.iomegaming.im It is advisable in any case to contact the Department for further guidance on whether or not your business needs a licence and how to complete the licensing process. Department of Economic Development Isle of Man Government St Georges Court, Upper Church Street, Douglas Isle of Man IM1 1EX Tel: +44(0) 1624 682307 Email: [email protected] www.iomegaming.im a winning jurisdiction e-gaming The Licence Gaming Duty In the Isle of Man one licence covers all activity from sportsbook, Gaming duty is payable by licensed gaming operators on gross poker, casino, bingo, lotteries to running network gaming. The gaming profit at the following rates: exception is where a sub-licence can be issued for those operators who are exclusively tied to an Isle of Man based licensed network. For gross gaming profit not exceeding £20 million per annum - 1.5% Basic requirements For gross gaming profit of more than £20 million per annum but not exceeding £40 million per annum - 0.5% The basic requirements for securing an Isle of Man e-gaming licence are: The business is carried out by an Isle of Man incorporated company The servers, where the bets are struck, are hosted in the For gross gaming profit of more than £40 million per annum - 0.1% These rates apply equally to all operators and in respect of all bets, wagers, etc. wherever the player is located. Isle of Man Affiliate costs can be deducted before calculation of duty. Banking is carried out in the Isle of Man Licence Preparation The business has a minimum of two company directors resident in the Isle of Man Although a business can prepare a licence application itself, it is often easier and quicker to employ the services of an In most cases an Isle of Man advocate or corporate service experienced local advocate, advisor or Corporate Service provider can facilitate the opening of a bank account, company Provider (CSP). formation and appropriate resident directors. The DED can provide a full list of professionals experienced in There are four data-hosting centres all of which can be preparing e-gaming licence applications and working with the contacted through the DED. gaming industry. In either case, it is useful to refer to the Guidance Notes available at www.gov.im/gambling and to make contact Fees with the DED who can assist you with establishing and growing There is an initial, non-refundable £1,000 application fee for an licence. OGRA licence. Application forms can be downloaded at www.gov.im/gambling/applicationforms. Once the licence is granted the licence fee is payable to the Isle of Man Government. This is £35,000 per annum for a full licence or £5,000 per annum for a sub-licence. your business in the Isle of Man, whether or not you require a Remember... The Isle of Man Government has a Financial Assistance Scheme for companies locating jobs in the Island. Time scales for licensing A full and complete application will be put before the GSC for consideration between 10 and 12 weeks of submission, subject to answering questions within a reasonable timescale. Representatives of the company will be required to present the application in person. Following the hearing the GSC will advise the outcome in a written response. a winning jurisdiction