Isle of Man Gambling Supervision Commission

The Isle of Man Gambling Supervision Commission was formed in 1962. The main mission of the department is to protect the interests of players, ensuring justice, honesty of the gaming industry on the island. The mandate of the department initially included licensing, regulation of any operations related to any type of rates. The business option is consistent with the Gibraltar business regulation scheme, characterized by the ability to issue long-term licenses and a low level of tax rates.

In 2001, the Isle of Man became the first jurisdiction in the world to officially legalize the concept of online gambling industry. The requirements for the activities of electronic gaming companies are set forth in the Online Gambling Act. Responsibilities for regulating the Internet segment are also assigned to the Commission. The first license to carry out activities was already issued in the same year - 2001.

Since February 2009, the Gambling Supervision Commission Isle of Man has been issuing licenses for online casinos offering games with a live dealer.

To date, the Isle of Man Gambling Supervision Commission is the official regulator of all types of gambling business on its territory. The range of its powers includes licensing, control, management:

• ground institutions - casinos, slot machines, betting offices, lotteries, attractions;
• online casinos, betting companies operating in the Isle of Man jurisdiction.

There is no legal division of business into categories. Licensees receive one package of permits - for gambling. Thus, operators who have issued a GSC license have the right to organize the work of any kind of establishments:. * Online casinos with online slots, roulettes, card games;

• resources offering peer-to-peer games: poker, bingo, backgammon, etc .;
• bookmakers and sweepstakes;
• exchanges offering telephone rates, participation in lotteries and network games;
• companies specializing in financial trading, with the exception of trading on the difference in exchange rates;
• portals accepting bets on fantasy sports;
• other types of gambling establishments.

The Isle of Man legislation also provides for the possibility of processing:

• The main license that allows you to organize gambling business on the Internet;
• sublicense, enabling small online casinos to act on behalf of major brands. Sublicense owners in the future receive the right to issue the main license.

Although the Isle of Man is a territory subject to the British Crown, the jurisdiction has its own legislation, accordingly, there are differences in the design of permits. Nevertheless, the jurisdiction has rather strict rules that allow the Isle of Man to be included in the “white list” of countries eligible for promotion and the provision of gambling services in the UK.

The main requirements for obtaining an Isle of Man license are:

• the need to register the operator’s company directly in the jurisdiction;
• the presence of at least two directors. Only individuals are appointed to the position.
• the need to appoint 1 authorized official - a member of a company that is a resident of the Isle of Man. If the authorized person does not have the opportunity to live in the territory, the appointment of an Operations Manager is required.
• Registration of players is carried out directly in the jurisdiction of the island. It is possible to conduct activities under the license of network services.
• opening trading, gambling accounts in banks of the Isle of Man.

The applicant may be refused a license if the Commission suspects intentions to open a nominee company intended to operate exclusively in the UK, or to create a subsidiary to promote services in other countries of the world that are on the “white list”.

A list of all documents required to apply for registration is presented on the pages of the official website of the Gambling Supervision Commission Isle of Man .

All documents are thoroughly checked for the accuracy of the data presented. A full license can only be obtained after payment of the relevant fees.

The list of government contributions required to obtain permits for activities in the island’s jurisdiction includes:

• administrative fee for consideration of the application - GBP 1,000;
• registration fee - GBP 5,000
• annual fee for using a full gambling license - GBP 35,000;
• annual sublicense fee is GBP 5,000.

The tax rate is:

• 1.5% of total revenue if the amount of proceeds does not exceed GBP 20 million;
• 0.5% of the gross turnover in case of total income within GBP 20 million - 40 million;
• 0.1% of profit for operators whose revenue exceeds GBP 40 million.

Sweepstakes, bookmakers pay 15% of the tax on the pool of players.

The range of powers of the Isle of Man Gambling Supervisory Commission includes:

• receiving applications, issuing licenses, regulating the activities of operators.
• providing guidance and assistance at all stages of the application review process.
• monitoring of any types of activities, including marketing activities, for their compliance with the provisions of laws and fair play principles.
• development, implementation of testing strategies for equipment and devices in order to confirm the randomness of the results of all gambling entertainment. To obtain a license, applicants are required to pass a check of their software systems in one of the specialized companies approved by the Commission.
• Investigation of player complaints filed against licensees.
• protection of funds of visitors to gambling establishments. Operators are required to ensure the use of systems that guarantee the safety of funds and the security of financial transactions.

The commission does not have the authority to return bets placed on a voluntary basis and lost in fair play. However, users can turn to specialist consulting services for help in returning illegally blocked funds and actual winnings.

Gambling Supervision Commission Isle of Man pays serious attention to providing funds for gambling participants. The statement of the Commission states that the main task of the Office is to ensure the protection of players.

To achieve this goal, operators undertake:

• develop an appropriate security system;
• conduct all financial transactions in accordance with the laws of the Isle of Man;
• conclude agreements with banks ensuring the validity of a bank guarantee. If the operator is not able to pay the winnings, the responsibility for the transfer of funds is assigned to the financial institution.

The commission regularly engages in spot checks to verify that the specified conditions are met, and monitors the availability of funds on trust accounts and funds.

Checking the sites of gambling operators is carried out by independent auditors, ensuring random results and fairness of the game. The commission also provides control of advertising and company policies, and accepts complaints from players.

The list of operators operating under the GSC license is available on the agency’s website.

Despite the rather stringent requirements, many operators legalize gambling under the jurisdiction of the island. This situation is due to:

• the inclusion of GSC licenses in the "white list", which allows to advertise and offer services to UK citizens. Indirectly, this fact may serve as evidence that the UK government considers the quality of licenses to be in line with EU high standards.
• relatively low level of contributions and state duties;
• the possibility of sublicensing, creating favorable conditions for the development of small businesses;
• regulatory framework stability;
• the liberality of British law.

The list of Isle of Man licensees includes many global gambling industry operators offering services in the field of gambling, online poker, sports betting. Well-known companies that have received the right to conduct business under jurisdiction are the operators Paddy Power, PokerStars, Full Tilt Poker.

• Nevada Gaming Commission
• Kahnawake Gaming Commission
• Panama Gamimg Control Board
• UK Gambling Commission (UK Gamblimg Comission)

• Gaming Law: Jurisdictional Comparisons, second edition, by John Hagan and Julian Harris, Hardcover, 2014 - 229–237 pp.
• Antilles (Dutch Caribbean) Investment and Business Guide Volume 1 Strategic and Practical Information, IBP Inc., 2016—138 p.
• Karriereziel Pokerprofi - von ™ sterreich bis Las Vegas by Reinhard Hofer, Diplomica Verlag GmbH, 2012 - 41 p.
• Isle of Man: Financial Sector Assessment Program Update: Detailed Assessment of Observance of AML / CFT, International Monetary Fund, 2009

• Official Site of the Isle of Man Gambling Supervision Commission
• Isle of Man Gambling Supervisory Commission at Newsofgambling.com
• Isle of Man Gambling Supervision Commission on Wikipedia English
• Gambling License - Isle of Man on Slotegrator Website
• Advantages of licensing online casinos on the CASEXE website