Isle of Man Gambling Jurisdiction

Isle of Man Overview

The Isle of Man does not fall under the jurisdiction of the UK. It is a British dependency, and yet has its own mechanism of governance, a situation that is ideal for people and organizations from other countries to engage in trade and commerce. Here is the official site for the Isle of Man Online Gaming.

The Isle of Man is a unique online gambling jurisdiction that offers gambling licenses to online as well as offline casinos and other gambling organizations. It has very definitive and strict regulations in place that have gone a long way towards making it a favorite gambling jurisdiction for many online casinos and also making it a model that other countries may want to adopt. However, it has gone through its share of ups and downs before arriving at its current favored position.

Gambling Legislation in the Isle of Man

The first set of legislations passed in the Isle of Man pertaining to online gambling regulation were the Electronic Transactions Act, passed in the year 2000, and the On-Line Gambling Regulation Act, passed in 2001. These acts basically legalized online gambling in the country. Five gaming operators from across the world had acquired licenses in this country by 2002. However, because of the market situation, all these five operators relinquished their licenses from the Isle of Man.

Since that downslide in 2002, there have been steps taken to rescue the situation. Licensing was brought under the ambit of the Department of Trade and Industry. Another big hurdle earlier was the whopping surety bond of $ 2 million (US) that the operator had to cough up while applying for a license. This was replaced with an insurance bond, which was negotiable. There were a number of other changes as well. The online gaming sector got another sop when, in April 2005, the income tax for operators in this sector was brought down to a zero rate.

Isle of Man Gaming Fees

When an operator applies for a license, he has to pay a licensing application fee of £1,000. Annually, there is a £35,000 licensing fee. If the gaming yield is up to £20,000,000, the tax applicable is 1.5%. However, there is a reduced tax rate for amounts above £20,000,000. An added incentive for online gambling operators is the 0% corporation tax they can avail of as long as they do not accept players from the Isle of Man. There are Gambling Control Commissioners who review and enforce the regulations laid down for online gambling.

The results were there for all to see. By 2009, the number of operators bearing licenses from the Isle of Man stood at 16, with a total of 26 Isle of Man sites.

The Isle of Man Gambling Supervision Commission

The Gambling Supervision Commission of the Isle of Man is an independent body that was set up way back in 1962. While earlier this Commission was tasked with the regulation of land-based gambling and betting establishments in the country, over the years its ambit has been further enhanced to include online gambling.

The Commission has a Director, a Policy Officer, five Gaming Inspectors, and two secretaries. The Commission approves and grants licenses for online gambling operators, land-based casinos, betting organizations, and also controlled gaming machines that are operated outside casinos, e.g. slot machines.