The Isle of Man gambling license is a true mark of quality for an online casino, which makes it highly desired among operators. While the Isle of Man’s liberal legislation and competitive tax policy make it a very attractive location for online casino businesses, the licensing process can be complicated and intimidating. We are here to assist you and guide you through the whole process.
The Isle of Man is a British Crown Dependency located between England and Ireland and is known, aside from its charming landscape and medieval architecture, for its strong, diverse, and low-tax economy. However, the Isle of Man is not governed by British laws, and has its own parliament, legislation, and gambling regulatory body. The island positions itself as a leading jurisdiction for the location, administration and regulation of the iGaming business.
The Isle of Man’s gambling control body, the Gambling Supervision Commission, was established in 1962 as an independent land-based gambling operation regulator. With the massive and continued growth of the online gambling industry, it has become responsible for online activities as well.
The Commission became one of the first to regulate online gambling when it issued the Online Gambling Regulation Act 2001, which aims to protect players and support online casino operators. The authority encourages gaming business success in the Isle of Man and stands for crime-free gambling, protection of the young, and fair gaming services; it processes gambling license applications, manages the register of software suppliers and other licensees, and grants permissions.
While the island is very welcoming to the gambling industry, the standards of the Commission have gotten stricter over time, due to increased advocacy for fair and responsible gaming. At the same time, the more stringent the regulatory requirements are, the more credible the license holder’s reputation is in the eyes of the gaming community and the players.
To avoid unnecessary complications, each Isle of Man license covers all types of gambling and is chosen by companies based on their business model and objectives: whether they wish to operate B2C or B2B, and if they possess their own gaming content or, for example, only databases of potential players.
The license is granted for a five year period and the Commission reserves the right to revoke it at any time if any terms are violated. There are several types of license a company can obtain in the Isle on Man, depending on its goals and business needs:
This is a main, standard license. Full license holders can operate B2C, register their own players, and store their data. They can offer other operators a White Label Solution, providing them with a platform, content, and other business solutions, as well as saving them the need to adhere to the Isle of Man’s requirements themselves. Full license holders can also partner with other operators, offering them games and software. In this case, they bear no responsibility for the operators’ administrative and legal activities, but enable them to get a sub-license from the Commission. Full license holders can be tied to any number of sub-licensees with an additional fee of £5,250 for each partnership. The full license covers the activities of the main licensee’s company and its subsidiaries, including:
Operators that have no experience in the gambling industry but are planning to enter a market and establish their own online casino would probably opt for the sub-license. This type of license is also a good option for a company that has a database of potential players but no gambling products of its own to offer yet.
Sub-licenses are granted based on a reduced fee and tie the licensee to a full license holder with an exclusive agreement. A sub-licensee’s registered players can have access to the software or games provided by the full license holder. While the sub-licensee is tied to a full license holder, it can at any time apply for its own full license and become a fully independent licensee.
This license includes all the same rights and obligations as the full OGRA license, but network services licensees can also accept players registered with casinos licensed in other jurisdictions, skipping the re-registration process. The transition process then allows swift migration of player data from the source server to a server located on the Isle of Man and does not require KYC or AML checks, though the chosen partner is expected to comply with these policies. Contract terms are not prescribed, but it is necessary to include a commitment to providing fair and crime-free services. There is no fee applied for adding new partner operators to the network, but their activities must comply with the gambling laws of the Isle of Man.
Since the network services license allows operators to accept players from other jurisdictions, it opens great opportunities to reach new target markets and potentially widen user databases.
The software supplier license is not obligatory to offer software to Isle of Man licensees. However, providers from all over the world can benefit from the license, as it grants them the prestigious reputation of the Isle of Man business network.
There are two types of software supplier license: one for standard fiat platform providers and one for blockchain-based software providers, which was added in 2019 in accordance with the Isle of Man’s online gambling regulation.
Suppliers’ products must go through a testing process and get certified to obtain the license in order to be listed in the GSC games registry, demonstrating to operators and players their adherence to high standards of quality. This will also facilitate the process of software integration for Isle of Man licensees with no additional certification needed.
Each Isle of Man license permits the use of all digital assets and currencies, including crypto, and covers all types of iGaming verticals:
*it is also possible to discuss new models
The Isle of Man demonstrates a flexible approach to regions of operation: the GSC does not have a black list of countries where operators are prohibited from offering their services, but licensees are expected not to enter markets where gambling is forbidden or operate in regulated markets without adhering to local laws. Therefore, operators must seek legal advice regarding each particular jurisdiction and get the GSC’s approval. It should also be noted that the Isle of Man’s resident players must be able to use licensed operators’ iGaming products.
Many operators are drawn to the Isle of Man due to its liberal legislation. The government recognises the value and importance of the iGaming sector and even provides services to support gambling businesses, including a modern telecommunications infrastructure for operators to smoothly run their online casinos.
Both start-ups and experienced operators can get professional help and advisory support with legal and banking services, company administration, investment, marketing, software development, and other processes. The Isle of Man Enterprise Support Schemes include micro business grants, loans and equity investments, funding towards business improvement projects, etc. Special grants will potentially cover your business relocation to the Isle of Man as well.
In addition, the Isle of Man demonstrates a very competitive tax policy. There is no capital gains tax, and gaming taxes are low; operators pay a 1.5% duty on gross gaming yield of £20 million, a 0.5% duty on GGY of more than £20 million but less than £40 million, and only 0.1% on GGY over £40 million.
The jurisdiction is a member of the World Trade Organisation and is whitelisted by the OECD (Organisation for Economic Co-operation and Development). Due to the regulators’ comparable standards of fairness and safety, the Isle of Man license is also whitelisted by the UK Gambling Commission, which allows licensees to advertise their services on UK territory.
The Commission has also established the Department for Enterprise, which is responsible for the development of four sectors: business, finance, tourism and digital. The department strives to make the Isle of Man an “Island of Enterprise and Opportunity” to create a home for digital and tech companies.
Advantages of the Isle of Man license:
The Isle of Man is considered to be one of the most innovative regulators in iGaming. Some of its most forward-thinking steps include:
According to theOnline Gambling Regulations Act 2001 (OGRA), a gambling license in the Isle of Man can be obtained by a company if the following requirements are fulfilled:
In addition, since the Isle of Man values its reputation as a safe gambling jurisdiction, the licensee has to comply with its policies, protect player funds, follow the Advertising Standards Authority Codes and the anti-money laundering policy. Otherwise, a license can be revoked by the GSC at any time during the five-year validity period.
Applicants must demonstrate the transparency and credibility of their activities. Therefore, each person and company connected to the application will be subject to thorough, detailed legal and financial due diligence checks. The GSC reserves the right to request additional information while evaluating the applicant’s ownership, business model, terms and conditions of contracts, game rules, internal controls of systems, technical requirements, player registration, etc.
Once the application is received, it can take 10 to 12 weeks to process. However, the timeframe can be extended if the application is not properly completed.
This is a list of documents that need to be provided according to the Isle of Man licensing laws:
*All the documents must be no older than three months
*The documents must be provided for every authorized person
We offer consultancy services and complete package solutions for gambling license acquisition that include:
First and foremost, it is risky: unlicensed operation is usually illegal and will potentially lead to unpleasant consequences. Penalties vary depending on each jurisdiction’s legislature, and these can range from fines to prison sentences:
Running a casino without a license can also limit your activities, since many game providers and financial institutions would refuse to partner with unlicensed operators, considering it too risky. A poor range of content and limited payment possibilities will result in narrow coverage.
If your platform is considered an unlicensed gambling operation, it can be shut down immediately. In the gambling industry, reputation comes before anything else. It is important to build trust by demonstrating your credibility and reliability to your partners and customers, something which is nearly impossible without a license.
The latest amendment to the online gambling licenses fees regulation was published in April 2023 and it slightly increases the annual fees.
| Application Fee | £5,250 |
| Full License The main license that covers B2C operation for all game types with a right to partner with sub-license holders and offer a White Label solution. | £36,750 p.a. |
| Fee for each new partnership with a sub-licensee | £5,250 p.a. |
| Sub-License Covers operation under an exclusive agreement with a full license holder where the sub-licensee is only allowed to offer the main licensee’s games. | £5,250 p.a. |
| Network License Covers all aspects of the full license and allows network license holders to accept players from foreign operators without re-registering them. | £52,500 p.a. |
B2B Software Supplier License
These licenses are not obligatory but are often chosen since they confirm compliance with the Isle of Man’s standards. | £36,750 and £52,500 p.a. |
*The fees for each type of license are due annually. The license is granted for a five-year period.
The Isle of Man’s gambling tax policy is highly competitive, which makes it a very attractive place to live and start a business. There is a 0% capital gains tax. The VAT rate is 20%, but online gambling is exempt from VAT on income, which also means it is not recoverable on expenses. The personal income tax and a gambling duty are applied as follows:
| The first £14,000 | 0% |
| The next £6,500 | 10% |
| After that | 20% |
| The maximum per year | £175,000 |
| Gross Gaming Yield (GGY) | Duty |
| Less than £20m | 1.5% |
| From £20m to £40m | 0,5% |
| More than £40m | 0,1% |
While the Isle of Man is a British Crown dependency with the Queen as its head of state, the island has its own parliament, as well as its own regulatory body for the gambling industry. Here is a comparison of the two licensors’ conditions:
| Isle of Man | UK | |
| By business model: Full License, Sub-License, Network License, Supplier License | Types of licenses | By activity performed: Operating License, Software Operating License, Personal Management License, Personal Functional License |
| Each license covers all product types | Products covered | Different license for each product type (Arcades, Betting, Bingo, Casino, Gambling Software, Gaming Machines, Lotteries) |
| All those not regulated by local authorities | Markets covered | UK |
| Fixed: £5,000 | Application fee | Depends on type of license, product covered, and GGY. Operating license: - Remote general betting for real events - £2,933 - £25,777 - Remote general betting for virtual events - £1,980 - £42,978 - Remote casino (poker, roulette, blackjack, slots) - £2,640 - £57,304 - Remote bingo - £2,640 - £57,304 Personal management license: £370 |
| Up to 10-12 weeks | Application processing time | Up to 16 weeks |
Fixed for each type: Full License - £36,750 Sub-License - £5,250 Network License - £52,500 Supplier License for standard platform providers - £36,750 Supplier License for blockchain enabled platform providers - £52,500 | Annual fee | Different for each type of license and product covered and depends on GGY. Operation license: Remote general betting for real events - £3,408 - £694,856 Remote general betting for virtual events - £2,709 - £512,083 Remote casino (poker, roulette, blackjack, slots) - £2,709 - £512,083 Remote bingo operating - £2,709 - £512,083 *There is an additional fee for each £500m of GGY above £1bn |
| 0.1%-1.5% on GGY | Tax rate | 3%-21% on GGY |
The annual fee may seem high compared to other jurisdictions, but on the other hand, the Isle of Man license offers enough benefits that it’s worth the money. Since Isle of Man authorities highly value their safe, crime-free online business environment, there is also a high level of bureaucracy, stringent due diligence checks, and a lot of paperwork. However, there’s no need to worry: Slotegrator is ready to get you sorted.
Getting a license is the right way to get started, but it is only the first step towards success. To give you an idea of where to go from there, we have prepared a roadmap for starting your iGaming business.
A well-designed and functional platform will not only attract players but keep them entertained, and a customized site will contribute to your brand awareness. Your casino also needs a backend office to facilitate the management of your daily operations.
Fill your new platform with the best possible offering of slots, table games, live dealer games, and sports betting. With our broad selection of certified game providers, you will find the most suitable content for your online casino.
It is crucial for your users to deposit, play, and withdraw in any currency, including crypto. Getting licensed will give you access to a wide choice of verified payment service providers, expanding your database of players as you gain their trust.
To make your online casino competitive and maximize your potential profits, make sure you introduce marketing tools such as bonus systems, affiliate programs, and special promotions so that your players won’t want to leave.
While licensing has plenty of advantages for operators, the main aim of the Gambling Supervision Commission is to protect players and promote responsible gaming. To uphold their standards, the Commission must ensure that potential licensees meet all of their strict requirements, which can make the application process arduous and time-consuming; even experienced operators can find it difficult to deal with all the paperwork involved.
With years of experience, the Slotegrator team has the expertise to help you understand the process and guide you through every step of license acquisition, including choosing the right jurisdiction, navigating the licensing process, and keeping you updated with changes in regulations. While we handle the licensing process, you can focus on business development and marketing. Save time and effort with our jurisdictional advisory services and take the first step towards a successful online casino project.
