Isle of Man

Registering a company in the Isle of Man legal field will become a good solution for each investor or entrepreneur, especially if his or her business is related to the gambling industry. 2WinPower offers comprehensive services for launching and promoting gambling resources.

We have been working in the Isle of Man jurisdiction for many years and are well acquainted with its benefits for businessmen. Contact our manager to find out more.

Features of the Jurisdiction

The Isle of Man is a territory located in the Irish Sea. The state is under the jurisdiction of the United Kingdom and is subject to the laws of this country. This is a kind of guarantee for entrepreneurs that their business and capital will be protected.

On the other hand, unlike mainland Britain, the Isle of Man did not join the EU in 1973. This fact gives significant tax exemptions to the companies registered here.

This offshore zone attracts investors from all over the world. Successful location (Europe) contributes to the active development of the gaming business.

Legislative Framework for the iGaming Sector

Speaking of gambling, it is worth mentioning that the first regulator, the Gambling Supervision Commission (GSC), was created back in 1962. This is one of the first commissions in the world specialized in the gaming industry.

The online sector was also launched for the first time in this territory. The local government adopted the Online Gambling Regulation Act (OGRA) in 2001. It regulates taxation and the Isle of Man gambling licensing.

The Isle of Man Casino Licenses: Benefits

The Isle of Man casinos have the following benefits:

• Good international reputation. The territory is included in the "white list" of the United Kingdom. It is a member of the World Trade Organization (WTO). A brand leading its activities here can count on the increase in popularity and demand.
• Entering foreign markets. Getting the Isle of Man gaming license is an excellent opportunity to expand your business and attract an international audience. Obtaining a license for poker on the Internet on the Isle of Man will allow you to work in many countries (including Asia, the EU, and other regions).
• Stability of legislation. Local authorities have developed balanced and well-thought-out laws that facilitate a quick start and subsequent promotion of the gaming business. Companies are protected from frequent regulatory changes. It allows them to build long-term plans.
• The advanced telecommunications of the Isle of Man. The local gaming business gained access to cutting-edge technologies. This is an excellent springboard for the development of related IT services. Broad-band MPLS networks and 4G technology, as well as hundreds of centres preventing powerful DDoS attacks, allow the online sector to evolve incredibly fast.
• Reliable banking system. Many companies (from different industries) prefer to keep their savings in commercial accounts of this offshore zone. The reliability of banks is explained by a stable financial and political situation.

Available Types of Gambling

The Isle of Man is one of the few territories where almost all types of gambling are allowed. The exception is spread betting.

Entrepreneurs can work in the following areas:

1. Online casinos (roulette, slot machines, blackjack, card games).
2. Sports and exchange betting.
3. Totalizator.
4. Organization of lotteries.
5. Fantasy games.
6. Holding online poker tournaments.
7. Financial trading.

One of the benefits of working in this offshore zone lies in the fact that the entrepreneur does not need to obtain a separate permit for each gambling direction.

Applicants have the right to submit a single package of documentation for all conducting gaming activities. This characteristic facilitates and accelerates the licensing process, as well as minimizes the financial costs.

Gaming Permissions and Their Cost

There are three types of the Isle of Man gambling licenses issued for five years

Full permission The right to engage in all types of gambling, as well as produce specific software and gambling content

35 000 GBP

Sublicense This document is issued to operators having contracted with license holders

5 000 GBP

Network permit It allows the operator to manage a network of gambling resources

50 000 GBP

In addition, businessmen need to pay the state fee for application submission for any type of license. Its cost is 5 thousand pounds. The amount is not refunded in case of an adverse decision.

Requirements for Applicants

Gambling Supervision Commission puts forward the following terms for entrepreneurs who decide to work in the legal field of the Isle of Man:

• setting up a local company in a form consistent with Act 2006 (or Act 1931);
• opening commercial accounts at a local bank. Gaming and trading accounts must be separated;
• two directors must be Isle of Man citizens;
• using local servers to host the company's software.

The Process of Obtaining a Permit

If the applicant complies with the above requirements, he or she can proceed to the next step, the preparation of documentation.

Preparation of Documentation

The following information should be sent to the commission:

1. Information on the company registration and opening accounts in a banking institution.
2. A form with the shareholders' data (5% of shares or more), as well as information about the leadership of the firm.
3. Commendatory letters for directors, shareholders, and beneficiaries.
4. Description of the business model (rights and ownership structure, methods of conducting financial transactions, payment schemes, internal control, design of a virtual platform).
5. Business plan and financial forecasts created according to the GSC sample.
6. The results of the gaming system testing. The audit should be conducted by specialized laboratories.
7. GSC certificate (for companies using a random number generator).

Applying Procedure and Terms

Collecting a package of documents and creating a business plan may take about 1.5-2 months. When everything is prepared, the entrepreneur should pay the state fee (5 thousand pounds) and send the documents (with a payment receipt) to the local regulator.

The next step is to schedule an appointment with the GSC representatives. The regulator holds a meeting with shareholders and managers within three months after applying. If everything goes well, the permission is issued in 1-2 weeks.

Thus, the Isle of Man gambling licensing process can take five months after the beginning of the documentation preparation.

Taxation

Minimum taxes will please operators who are thinking about obtaining a license for poker on the Internet on the Isle of Man. The jurisdiction exempts operators from lots of taxes and fees. These conditions apply not only to online poker tournaments, but also to the activities of virtual casinos, lotteries, and bookmakers.

The jurisdiction provides a zero rate on inheritance and capital gains tax. Moreover, there are no VAT, corporate, real estate, and land taxes. At the same time, gambling companies pay profit tax annually. Its rate depends on the net profit of the enterprise:

A differentiated approach to taxation lets the market participants conduct a successful and profitable business. The more the operator earns, the less money he or she gives to the local treasury.

Low taxes are another advantage of the Isle of Man gambling licensing.

Interestingly, loyal taxation applies not only to gambling but also to other sectors of the economy. Ten per cent fee applies only to the banking sector as well as operations with property, land, and legal consulting.

All other types of entrepreneurship get the same benefits as the iGaming field. It contributes to the growth of the state welfare and its transformation into one of the leading centres of the world economy.

Conclusion

The Isle of Man is one of the most attractive jurisdictions for launching gambling projects. The local regulatory commission offers a simplified licensing process. Besides, the cost of the application is several times lower compared to many European countries. It is also worth mentioning loyal taxes and advanced telecommunications.

You can buy a ready-made casino with the Isle of Man license from 2WinPower. We provide an individual approach to each client. You can order juridical and marketing as well as reliable and multifunctional software from us.

Contact our manager and learn more about a profitable partnership with 2WinPower:

• email: [email protected]
• Skype: twowinpower
• Telegram: @Win2Power
• feedback form.