During a period of regulatory uncertainty and change in many jurisdictions, the Isle of Man has remained constant. A safe harbour in otherwise stormy waters, if you like.
Just looking back over the last couple of years we’ve seen prominent licensing jurisdictions find their way onto (and off) the grey list, we’ve seen the markets where a B2C operator can use their MGA licence being reduced due to local regulation, and we’ve seen Curacao undertaking a complete overhaul of their licensing regime.
Amid all of this, the Isle of Man has been quietly consistent, some might say boring. But boring is good for business, because it means you know where you stand. It means you can plan effectively with a level of certainty about your long-term strategy.
It’s no surprise then, that we’ve seen an influx of applications and the eGaming sector on the Island booming recently. A look at the list of Licence Holders on the Isle of Man GSC website now shows nearly 90 businesses, including some of the industry’s biggest names.
It’s also well known that the Island maintains the highest standards of AML and compliance, so why are so many B2C operators and B2B providers choosing to get their licences here?
Support from multiple banking providers
The Isle of Man has a reputation as a trusted offshore financial services centre, with a strong regulatory framework and a high level of transparency.
eGaming businesses can bank on the Isle of Man, accessing a range of banking and payment services from reputable providers.
An Isle of Man licence opens doors with more credible Payment Service Providers and often means lower transaction fees.
A simple tax system, favourable for business
With 0% Corporate Tax, 0% Capital Gains Tax and no Withholding Tax the Island offers an extremely attractive tax regime that favours businesses.
In the Isle of Man Gaming Duty rates are calculated on profit rather than revenue, with a sliding scale of 1.5% — 0.1%. B2C operators can also include payments to affiliates in these calculations.
Low tax and banking access make the Island extremely attractive
Access to lucrative pre-regulated markets
The Isle of Man’s outward facing licence provides credibility for those operating in pre-regulated markets.
Typically, B2C operators use their licence to target markets in Asia, LatAm and Africa. Whilst options to access lucrative markets like these are being closed off in other jurisdictions, a licence here opens up a global reach.
Provide content to a wider B2B market
A Software Supply Licence opens up a number of opportunities, including the ability to deploy content to a growing list of Isle of Man licensed B2C operators immediately.
A software licence in some jurisdictions prevents you from being able to service B2C operators in certain market. Being licensed in the Isle of Man opens opportunities for content providers to sell to a global audience, without restrictions.
An Isle of Man eGaming licence is invaluable to a company looking for B2B partnerships, investment, and financial services. It demonstrates exceptional standards of corporate governance and compliance with AML/CFT regulations.
The core principles of the Island’s gambling legislation are simple; keep gambling crime free, protect the young and the vulnerable, ensure that games are fair and that players receive their true winnings.
Licensing in the Isle of Man isn’t as complicated as many think, given the high standards here and the process usually takes around 12 weeks from application submission to final hearing with the GSC.
If you’re a B2C operator looking to expand your offering beyond sportsbook and casino games, an Isle of Man licence gives you the flexibility you need. A single licence covers all gaming verticals.
Add in things like Esports betting, live dealer, pari-mutual, fantasy sports or P2P games like poker, mah-jong and bingo, all under one licence.
B2C operators can also offer Sub-Licences and White Labels to B2B partners.
The Road Ahead
The Isle of Man’s eGaming sector is currently undergoing a period of significant growth, and it’s no surprise given the many reasons why it’s an ideal place for credible business.
In light of uncertainties and change elsewhere, the Isle of Man’s eGaming sector is poised to continue thriving, offering a stable and conducive environment for credible businesses.