The Isle of Man, or Mann, is a British Crown Dependency with an autonomous government and law. The island nation with a population of 84 thousand is known for its innovative and liberal gambling legislation and tax policies. Mann is also in the World Trade Organization and is whitelisted by the Organization for Economic Cooperation & Development and by the UK gambling authority. All these factors make online gambling in the Isle of Man an attractive industry for investing.
This article provides necessary information for the gambling ops and software studios that wish to enter the iGaming market of the Mann jurisdiction.
Gambling history in the Isle of Man
Unlike most of the European countries, The Isle of Man doesn’t have a long history of land-based gambling. The official history of games of chance began only in 1962, with the openning of the Gambling Control Commission (now renamed to Gambling Supervision Commission). Sportsbooks and lotteries were legalized in 1988.
The British Crown Dependency, however, was one of the first countries on the European continent to legislate online gambling. In 2001, the Online Gambling Regulation Act (OGRA) came out. This document is now one of the main gambling laws in the Isle of Man. The Commission issued the first iGaming license to Celton Manx in 2009.
The jurisdiction is also known for its data protection law, which was approved in 2002. In 2004, the European Commission recognized this legislation as excellent.
Mann was also one of the pioneers in the regulation of crypto gambling. Transactions in digital assets are legally permitted on the island since 2017. In 2019, the Isle of Man online gambling laws were updated, allowing casino software providers to apply for a crypto license. The local Gambling Commission has also issued the first-ever license for a crypto lottery.
Structure of gambling in the Isle of Man
The Isle of Man gambling market includes almost all forms of terrestrial and remote games of chance. Moreover, it is one of the few jurisdictions that legally allows cryptocurrency gambling.
Offline gambling
Mann has just one offline casino in the Palace Hotel, which is located in Douglas – the capital of the island. The establishment is a part of the Best Western and Hilton Hotel. The casino features around one hundred and sixty slot machines and seven table games. The hotel also has a bingo lounge, which can host up to three hundred people.
There are also numerous bingo and betting venues on the island.
Lottery
The National Lottery of the UK is available in the Isle of Man. Local players also can play popular games with online lottery ops.
Online gambling
Due to its innovative legislation, Isle of Mann has attracted some of the largest software development companies and iGaming operators, including:
- Microgaming;
- Playtech;
- PokerStars;
- Paddy Power;
- Fulltilt;
- Knockout Casino;
- Cozy Games Management.
Gaming laws and taxation in the Isle of Man
Is gambling legal in the Isle of Man? The short answer is yes. Both offline and online games of chance are governed by the Gambling Supervision Commission (GSC). Besides, the GSC licenses are on the UKGC whitelist, which means that iGaming ops can accept players from the UK and advertise their services in Great Britain.
Although Mann is a British Crown Dependency, the region is fully autonomous and has its parliament – Tynwald. The local government has to approve the UK laws before they extend to the region. In the gambling niche, the Isle of Man has its legislation, with OGRA as the main document.
The legal gambling age is eighteen years. The residents of the Isle of Man, however, are not allowed to participate in the games of chance.
Licensing
The Mann gambling license covers the use of all digital currencies and asses, including cryptocurrencies. The Commission issues the iGaming permit for the following verticals:
- Casino games and slots;
- P2P games (poker, bingo);
- Live dealer casino;
- Sportsbooks;
- Cybersports betting;
- Wagering on fantasy sports;
- Lottery;
- Finance exchanges;
- Mobile and desktop games.
Operators can apply for one of the four types of licenses. To acquire the Isle of Man gambling license, private companies have to pay a £5k for an application and annual fees, the size of which depends on the type of the permit. The license is effective for five years.
| License type | Areas covered by the license | Fee |
| Full | B2C operations;Operating an iGaming platform and a variety of games;Registering new players and storing their information;Collaboration with any number of sub-licensees and providing them with While Label casino solutions for a £5k fee. | £35k |
| Sub-license | B2C operations;Registering new players and storing their information;Access to the platform and games of a full licensee;Ability to apply for a full license. | £5k |
| Network services | All rights of a full license;Ability to accept players from other jurisdictions without re-registration and KYC and AML checks. | £50k |
| B2B software supplier (for fiatand blockchain platforms) | B2B operations;Development and supply of iGaming platform and other software. | £35k – fiat;£50k – crypto |
As seen from the table above, the permit for gambling in the Isle of Man has many unique perks, such as cryptocurrency support, the option to accept foreign players, and wide coverage of games of chance by one permit. The Mann Gambling Commission, however, have a list of requirements for the potential licensees:
- Open a company in the Isle of Man;
- Appoint not less than two local directors (not corporate entities);
- Assign at least one official or operation manager who is a resident of the Isle of Man;
- Store player’s data on the servers, which are placed in the Isle of Man;
- Open gambling and trading account at the local bank;
- Certify all games, RNGs, and other software in an approved testing house;
- Comply with GCS’s policies, protect customer funds at all times, and comply with advertising and AML regulations.
To get licensed in Mann, a gambling company has to submit an application form, all paperwork, and an application fee to the GCS. Typically, it takes from ten to twelve weeks to process a license request.
Taxes
One of the reasons why the Isle of Man is so popular among iGaming operators is its exceptionally competitive tax policy. In the Mann jurisdiction, the gambling sector is exempt from the VAT, and the capital gains levy is 0%.
iGaming operators also have to pay a gaming levy on the gross gaming yield. This duty can be as low as 0.1%. The exact tax rate depends on the size of the annual profit:
- £20m or less – 1.5%;
- £20m – £40m – 0.5%;
- Over £40m – 0.1%.
Preferences of Isle of Man’s gamblers
As the online casino sector of the Isle of Man has been legal and constantly developing for over twenty years now, the popularity of iGaming on the island is obvious.
In 2017, the local government cooperated with Liverpool John Moores University on the study of gambling attitudes on the island. The results of the research show that 75.9% of surveyed adults have engaged in gambling in the last year. At the same time, a high proportion (77.9%) of the respondents viewed gambling negatively.
The most popular gambling activities were:
- The National Lottery (56.9%);
- iGaming (18.5%).
The most widely played terrestrial games of chance are:
- lotteries;
- bingo games;
- table games & poker;
- wagering on horse and dog racing.
In the iGaming sector, the most popular activity was sports wagering (football and tennis) and online betting on horse races.
According to the study, the typical player of online casinos in the Isle of Man is a white man, aged between 18 and 24 years with an average income of £20k – £79k. The research also deemed that young males were at the highest risk of a gambling addiction. Older males (aged 35 – 44 years), however, had the highest levels of problem gaming.
Future of online gambling in Isle of Man
The market of online casinos in the Isle of Man is dominated by reputable and well-established iGaming brands like PokerStars or Microgaming. Although the licensing standards are rather strict, the overall climate is very favorable for the iGaming businesses. Low tax rates and recognition of the modern forms of gambling, such as crypto gaming, DFS, and esports betting, make the Isle of Man especially attractive for gambling ops.
Tynwald, the local parliament, also supports the development of the iGaming industry. The Mann government has created an elaborate infrastructure for online casinos in the Isle of Man to run their businesses. The authorities provide professional help and even grants, loans, and other funding to the online gambling businesses. TGSC has also launched the Department for Enterprise to boost the development of business, finance, tech, and travel sectors. Considering all these factors, the online gambling industry in this British Dependency has a bright future. Mann remains an appealing region for many gambling providers, which will undoubtedly lead to income and investment growth.
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