Some of the most influential operators in the industry are based on the Island and the number of licence holders has been steadily increasing strengthening a thriving ecosystem for the sector.
There are many factors which have contributed to making the Island an important hub including:
• First jurisdiction to license blockchain betting products
• Skins betting permissible
• Cryptocurrency fully regulated and available for operators to offer
• Fast and transparent licensing process
• Low betting duty on Net Gaming Yield
• An extensive cluster of experience eGaming service providers and advisers
• An experienced and qualified workforce in ancillary activities such as marketing, software and IT providers
• Politically stable government committed to the eGaming sector
• 0 per cent corporation tax, no capital gains tax, no inheritance tax, attractive personal tax rates with high tax allowances and with income tax payable per year capped at £200,000 for individuals
• 100% protection of player funds
• World-class telecoms infrastructure including two self-healing rings serving the Isle of Man, with anti-DDoS attack technology
• Excellent support service providers in hosting, IT and digital media
• Government grants available for up to 40 per cent towards costs of relocation, marketing, hardware and software
• Its reputation as an ideal jurisdiction for AIM, ISDX Market or FTSE stock market listings
• Isle of Man entities applying for a UK gambling licence are exempted from the requirement to have a UK corporate footprint and to appoint a UK resident Fiscal Representative.
The process involves gathering detailed information and documentation relating to the proposed business strategy, its management, operating structure, key service agreements, banking arrangements, player funds protection and anti-money laundering procedures.
Relevant experience in the industry needs to be demonstrated by the key individuals involved in the business. Due diligence documentation together with a detailed personal declaration form must be provided in respect of all parties involved.
A minimum of two Isle of Man resident directors is required to ensure mind and management is maintained on the Isle of Man. One of the resident directors must be capable of being appointed as the Designated Officer or the Operations Manager. The responsibilities of these roles are extensive and cannot be entered into lightly.
If you intend to use an Isle of Man approved software provider exclusively, it may be possible for you to apply for a sub-licence rather than a full licence. The annual fee for a sub-licence is substantially less than for a full licence but the application process, except for software testing and the requirements for due diligence to be carried out in respect of the software provider, is essentially the same.
Once the relevant documentation is submitted to the Gambling Supervision Commission, however comprehensive the application is, the next stage usually involves several communications with the GSC in response to queries arising from an initial review of the application. This precedes the setting of a date for a formal hearing with the Commission at which it is necessary for the directors and/or the local representatives to respond to additional questions needed to support the application.
Following the formal hearing the Commissioners may approve the application outright or approve it subject to certain conditions. The latter is more common and the licence will not be granted until all of conditions are met.
The application process should take approximately two months from the initial submission of the relevant documentation, through to approval (with or without conditions).
ILS World's eGaming and Digital team has a real passion for the industry - we have a "can-do" attitude and take new legislation and previously unseen business models in our stride.
We have both start-ups and established gaming clients, many of which are household names - we have and continue to work in many different sectors including eSports, sportsbook, casino, bingo and poker. Our knowledge in the sector is not restricted to online concerns and we assist several land-based operators and associated businesses such as casinos, banks, payment processing and marketing advisers.
We also enjoy working with those who are keen to develop and integrate new technologies into their business and we are very experienced at working with blockchain and cryptocurrency betting operators. Latterly we have advised eSports businesses embracing the use of digital currency and tokens within their models as well as working with a cryptocurrency custodian utilising cutting edge, self-developed technology to provide much needed security for clients holding cryptocurrency.
eGaming is a global high-speed industry and ILS World has developed specialist knowledge and skills to keep pace with the sector. We have GSC approved directors, and we are adept at dealing with new opportunities and gaining approval for appropriate licences in the Isle of Man and elsewhere.
ILS World enjoys a strong working relationship with the GSC and the Department of Enterprise which helps facilitate and support the application process.
Our team consists of dedicated project managers, accountants, highly trained compliance officers, industry consultants and administrators.
Together, we have nurtured mutually beneficial relationships with our clients, suppliers and associates, all whilst working in partnership with governments and regulatory authorities. We extend our network of industry associates to all our clients, developing the international infrastructure necessary to launch and maintain a leading eGaming business.
Our service includes:
• Unbiased and objective multi-jurisdictional licensing consultancy across all major offshore and onshore gaming jurisdictions
• Guidance with compiling an appropriate business plan
• Advice on the licence application and associated due diligence requirements
• Liaison with the relevant gaming regulator
• Advice on all regulatory compliance
• Integration of cryptocurrencies and tokens as payment methods if required
• Assistance with the development of anti-money laundering policies and procedures and the creation and maintenance of statutory registers
• Registration with Customs & Excise and on-going preparation and submission of Gambling Duty Returns
• VAT registration, if required
• Registration under the Data Protection Act
• Liaison with payment solution providers, banks, computer hosting facilities, software suppliers, auditors, lawyers and other professionals, as required
• Establishing bank accounts
• International company incorporation
• Provision of company directors and secretary
• Book keeping and preparation of financial statements
• On-going company administration and secretarial work
• Post-licensing supervisory visits.
To keep up to date follow us on LinkedIn.
Please note: ILS World does not offer tax advice and would therefore recommend you obtain your own tax advice. If you require an introduction to a tax adviser we would be happy to assist.