Analysis ISLE OF MAN (PTII)
operator) for a Network Services Licence.
• Online gambling duty is:
1. 1.5% - for gross gaming yield not exceeding £20m annually.
2. 0.5% - for gross gaming yield between £20m and £40m annually.
3. 0.1% - for gross gaming yield exceeding £40m
4. 15% - for gross gaming yield from Pool Betting.
• Licences are issued for a five year period which is then renewable by applying to the GSC.
• The duty of the GSC is to supervise the operation of online gambling conducted on the island, investigate the character and financial status of anyone applying for a licence and to ensure all fees are payable to the Treasury.
• The following companies are approved by the Isle of Man Gambling Supervision Commission for testing of gaming software: BMM Compliance, Combitech AB, Compliance Testing Laboratory, Eclipse Compliance Testing, eCOGRA, Enex Pty Ltd, GLI Europe BV, Gaming Associates, iTech Labs, LGAI Technological Center SA, NMi Metrology and Gaming, QUINEL, SIQ, Software Quality Systems, Testhouse Ltd and TST Global.
One type of licence covers all activities and there is a quick 10-12 week licence application process, low licensing fee and duty rate and sound technical infrastructure. Peripheral activities such as marketing, software provision and back office functions do not require a licence whilst there is also a special legislation for Disaster Recovery which permits immediate switch over for up to 90 days without a licence.
There are some basic requirements however. Businesses need a full business plan, have to bank locally and set up an Isle of Man company and have a minimum of two directors and an operations manager based on the island and the servers, where the bets are struck, should be hosted on the Isle of Man.
Previously online gaming was regulated under the Online Gambling Regulation Act 2001 whilst online betting was regulated by the Gaming, Betting and Lotteries Act 1998. However in 2007 all online gaming and betting came under OGRA. The Online Gaming Regulation Act 2001 (OGRA) was amended in 2006 and includes the following points:
• An applicant for a licence shall pay to the treasury a £5,000 administration fee (this was formerly £1,000 but increased in September 2011).
• £35,000 per year is paid thereafter for a full-licence or £5,000 annually for a sub-licence.
• An annual fee of £50,000 is paid thereafter (plus £5,000 for every foreign
Peripheral activities such as marketing, software provision and back office functions do not require a licence whilst there is also
a special legislation for Disaster
Recovery which
permits immediate switch over for up
to 90 days without a licence.
In 2010 new legislation was introduced to enable the commission to move to an independent and autonomous statutory authority, whilst new regulations were added to the existing range of player fund protection laws currently in place to safeguard player deposits against operator defaults.
Steve Brennan, Chief Executive said: “In terms of sector growth the number of licence holders has increased over the year and we continue to be a jurisdiction of choice for gambling operators looking to locate to a well regulated and respected jurisdiction. The Isle of Man will work to maintain its position as a premier licensing jurisdiction with an open, transparent and professional approach to business that has been the hallmark of our success so far.”
Meanwhile also in 2010 the Department of Economic Development created a new e- business development group which is growing the e-business sector and developing other niche areas.
April 2013 PAGE 63
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