Gaming License in the Isle of Man
For tourists, the Isle of Man is famous for the Laxy wheel, the largest water wheel in the world, and for business, the Isle of Man is one of the best jurisdictions in which to obtain a gaming license. For FINTECH HARBOR CONSULTING lawyers, the Isle of Man gaming license is one of the most popular licenses among clients. Each Isle of Man license covers all types of gambling and is chosen by companies based on their business model and chosen goals: B2C or B2B, having their own game content or just a database of potential players. That is probably why the aforementioned “comprehensiveness of the gaming license” makes it so popular among those who work in the gaming business.
Our Isle of Man Gaming License Services
If you contact the lawyers of FINTECH HARBOR CONSULTING regarding a gaming license, expect that you will be provided with highly qualified legal assistance from “A to Z”.
- consulting the client regarding which set of documents must be submitted for the registration of the company that will be the owner of the gaming license;
- checking and analyzing the documents of the company’s future UBO in accordance with regulatory requirements;
- company registration on the Isle of Man;
- analysis of the lease agreement for the newly created company: terms, features, etc.;
- filling out the application form for obtaining a license in accordance with the established requirements;
- development and analysis of AML policies for the company, provision of legal advice regarding the future website of the gaming license owner company;
- additional consultations of the client regarding what requirements must be met in order for the license to operate continuously and in accordance with the requirements of the law.
Licensing Process Overview: Isle of Man
Any licensing process includes certain steps, following which allows you to obtain a gaming license. Among such basic points for licensing, the following can be distinguished:
Step 1 – a prerequisite for obtaining a license is to register a company in the Isle of Man, for which a minimum of 2 local directors will be appointed. In addition, renting a local office is a necessary part of the licensing process. The company registration process itself can take several days, or it can take several hours. Reduction of the term for company registration depends on payment;
Step 2 – opening a bank account in a local bank. The bank must have a good reputation. Before opening an account, you should familiarize yourself with the bank’s requirements for the license holder company, and then submit the appropriate package of documents;
Step 3 – personnel component. Having a local office should appoint local employees to key positions;
Step 4 – registration process. Before applying for a gambling license in the Isle of Man, it is necessary to collect a set of properly executed documents. Among the mandatory documents: developed business plan, corporate policy, program documentation, charter, completed personal declarations of directors and shareholders, proof of criminal record of founders, copies of passports of owners, financial statements, detailed description of all games, RNG certificate, policy of not allowing minors and players with addiction from gambling, etc. The package of documents can be changed depending on the type of license and services chosen. If the documentation/information is collected incorrectly or incompletely, the regulator may request additional information;
Step 5 – submission of documents to the regulator and payment of established fees and contributions;
Step 6 – obtaining a license. If the applicant has received all the requirements, wait up to 4 calendar months, the company will become the happy owner of a gaming license in the Isle of Man.
So, the licensing process in the Isle of Man has the following algorithm: company registration – opening a corporate account – setting up an local office – document preparation – application submission – obtaining licensing.
Trust the specialists of FINTECH HARBOR CONSULTING. We know how to get a gaming license in the Isle of Man.
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Requirements for Obtaining a Gaming License
The licensing process in the Isle of Man, in terms of the requirements for obtaining a gaming license, consists of several stages, which include the following:
- the applicant for a gaming license must have his own company and a real office on the Isle of Man, regardless of the type of services he will provide;
- the company must have at least two local directors. They are required to have significant experience in working with finances, as well as relevant education.
- When applying for a license, the applicant must submit a detailed business plan.
- The servers of the online gaming platform must be located on the Isle of Man. If the server is located outside the Isle of Man, an additional network service license is required.
- In order to carry out settlement operations, the company must open a bank account in a local bank. The account must have a certain amount of authorized capital.
- Ensuring reliable protection of players’ deposits. In addition, players must be familiar with the rules of the jurisdiction, for which the rules are published on the site in several world-class languages. The absence of the above information may be considered as concealment of information or an attempt to mislead users;
- Access to games for minors and people with gaming addiction should be limited;
- Obtaining a Random Number Generation (RNG) certificate;
- Strict regulatory compliance: A gambling company’s website must clearly, fully and clearly, and most importantly, truthfully reflect the local jurisdiction’s regulations for all players.
Cost and Fees: Isle of Man Gaming License
Isle of Man gaming license cost may vary depending on the project chosen by the client. On average, the cost is about $54,000.
If we analyze in detail the cost of the components of the Isle of Man gaming license service, we will have the following amounts according to the Online Gambling (License Fees) Regulations 2023:
1) the fee payable to the Treasury on an application for the grant of a license is £5,250.
License fee:
(1) The annual fee payable by the holder of a license upon the grant of the license and on each anniversary of the license is —
(a) £36,750 for a full license or a software supplier license;
(b) £5,250 for a sub-license; and
(c) £52,500 for a network services license or a token-based software
supplier license.
If a license holder applies to the Commissioners to vary its license so as to provide or cease to provide network services, the Commissioners may issue a new licence to include or omit those services.
(3) A full licence can include a licence condition allowing software supply without attracting an additional fee.
(4) A full licence can include a licence condition allowing token-based
software supply, in which case the total licence fee payable will be the fee for a token-based software supplier licence.
Benefits of Choosing an Isle of Man License
Each jurisdiction that issues a gaming license undoubtedly has its pros and cons. Regarding the Isle of Man gaming license, the following are the advantages of this license:
- low reputational risks and a relatively high level of trust on the part of the client base and potential partners in the company of the owner of the gaming license obtained in the Isle of Man;
- the most “cool bun” in gaming license is a favorable tax regime: the tax advantages of a gaming license in the Isle of Man are one of the factors that take the first place. Gaming license holder businesses can maximize their profitability and financial efficiency by taking advantage of 0% corporate tax and 0% capital gains tax for license holders;
- among the bonuses for owners of a gaming license on the island of Men is an efficient licensing procedure – flexible and loyal legislation. The whole process, from submitting your application for a license to making a decision on issuing a license, takes a maximum of 4 months;
- one license is issued for 5 years and can cover all types of games;
- there is ability to open sub-license;
- different types of currency are supported;
- foreign players can be accepted with a network license.
Ensuring Compliance: Regulatory Considerations
Clear and continuous compliance with regulatory requirements is critical to a company holding an Isle of Man gambling license. Key requirements for game licenses include:
- Anti-Money Laundering (AML) and Combating the Financing of Terrorism (FT): development and implementation of reliable anti-money laundering policies to prevent money laundering and terrorist financing is one of the main documents for the operation of the Isle of Man gaming license owner company.
- Detailed client due diligence (CDD): thorough client due diligence to confirm their identity and the source of their funds allows us to detect suspicious transactions at the initial stage of cooperation with a particular client and to contact the relevant authorities in a timely manner. In addition, constant tracking of transactions will allow timely detection of unusual activity on the part of certain customers.
- Know Your Customer (KYC): Implementing effective KYC procedures to verify customer identity at setup will identify high-risk customers.
- Rules for players: A number of measures should be put in place for players to protect them from gambling-related harm. Such measures include, but are not limited to, the establishment of deposit limits to control player spending. In addition, players should be given options to self-exclude from gambling. Clear and understandable rules of the game must be implemented for all players.
- Implementation of technical and security standards (cyber security): in addition to standard security measures against hacking by third parties, continuous certification must be carried out, and security measures for the protection of players’ personal data, in order to protect player information in accordance with data protection laws, must be constantly tested for the impossibility of distributing such personal data to third parties.
- Financial Accountability and Ongoing Auditing: Timely submission of financial statements to the Isle of Man Gambling Commission (GSC) to confirm the financial standing of the gaming license holder will ensure compliance with the legislation. Conducting an audit is another additional factor that will allow you to monitor and make sure that the company carries out its activities in accordance with regulations.
- Ongoing training of staff: conducting regular trainings for staff on compliance issues, in particular, AML, KYC and responsible gambling will increase staff awareness of the implemented regulatory requirements related to the iom gaming license, as well as develop a model for staff behavior in case of detection AML, KYC or CDD violations.
- Honest advertising campaign: advertising campaigns and materials carried out or distributed by the isle of man gaming license holder must be truthful and not aimed at minors or vulnerable persons.
- Annual renewal of the license: timely, annual renewal of the license will ensure its continuous operation.
The Isle of Man’s Gambling Supervision Commission (GSC) enforces compliance through the Gambling Act 2018 and the AML/CFT Code 2019. Additionally, the Anti-Money Laundering and Anti-Terrorist Financing Guide for Gambling Operators, introduced in 2020, requires the gambling industry to strictly comply with certain requirements that operators must meet before they start operating.
At first glance, compliance may seem like a rather complex topic. However, compliance with the listed requirements is a prerequisite for successful online gambling. If any questions regarding compliance seem difficult for you, FINTECH HARBOR CONSULTING lawyers are always ready to help you.
Expert Assistance: Navigating Isle of Man Gaming Regulations
As in any licensing process, understanding the licensing procedure and having timely expert legal assistance is the key to success in obtaining a license. Qualified expert participation can help in this process in the following matters:
- The initial consultation will help the future gaming license applicant familiarize himself with the requirements that must be met in order for the license to be eventually obtained. Experienced gaming legal advisors will help you understand the Isle of Man gaming regulations and the requirements that companies who wish to become operators must meet.
- Participate in the registration process: Registering a company in the Isle of Man is the first step to obtaining a gaming license in the future. Therefore, the correct filling of all registration documents along with the formation of a complete package of necessary documents, established by regulations, will allow to register the company in the shortest possible time.
- Assistance in the error-free and correct preparation of all necessary documents – the application form and the corresponding annexes to it will speed up the process of obtaining a license.
- Assisting in the preparation and presentation of financial statements and confirmation of funds will allow compliance with the requirements of the regulatory authorities in the gaming sector in the Isle of Man. Consultants with experience in gaming regulation can offer practical advice and provide real assistance to avoid liability as a result of breaching financial reporting provisions.
- The development of comprehensive AML and KYC policies will allow compliance with regulatory standards and requirements.
Obtaining a gaming license in the Isle of Man is always easier when you have a trusted legal advisor with a good reputation.
If you are thinking about whether fees for us to prepare gaming license isle of man is so necessary for lawyers, better familiarize yourself with the services offered by FINTECH HARBOR CONSULTING on its website and see for yourself that it is better to pay professionals and get a license in a timely manner, than to spend your time to wrong decisions and not getting what you want.
