Isle of Man

Situated amid the British Isles nations of Wales and Ireland, in the midst of the Irish Sea, the Isle of Man has long been a confusing jurisdiction. Administratively, the Isle of Man is labeled a British Crown Dependency, yet is wholly self-governed under ancient legislature known as the Tynwald. The Isle of Man is exempt from the historic laws of any UK nation, including those pertaining to tax liability and VAT. In 2001, Isle of Man joined the ranks of Gibraltar and Malta as a self-governing licensing jurisdiction for online gaming. Attracted by the zero liabilities for capital gains tax and cheap licensing fees, some of Europe's biggest gaming operators transferred their interests from other jurisdictions for these incentives alone. A study by investment specialists Hemscott recently revealed the jurisdiction's popularity among non-UK companies, specifically seeking to be included upon the London Alternative Investment Market. Isle of Man is also considered one of the best legislative jurisdictions after Gibraltar.

Established in 1962, the Isle of Man Gambling Supervision Commission (GSC) is one of the oldest regulatory bodies in Europe for betting and wagering services. Originally incepted to create legislative guidelines for horse race betting and racebooks, GSC introduced an additional bill in 2001 for eGaming and online betting – OGRA (Online Gambling Regulation Act 2001). In addition to the act, GSC integrated a brand new licensing application process, designed to comprehensively vet, investigate and evaluate the suitability of mainly offshore eGaming providers. An OGRA eGaming License is necessary for all casino, sportsbook and racebook site formats, as well as if a service provider wishes to advertise as a “White List” company within UK territories. GSC currently offer a variety of unique eGaming licenses, including a Network Services Licence for companies requiring transference of players from another offshore jurisdiction/ server. Both blue chip and developing companies are welcome to apply for the initial OGRA eGaming Licence, however there is a separate process for parent brands looking to incorporate a new company within the jurisdiction.

Initially, a GSC application form and Vetting Sheet must be completed and returned to the commission with the relevant license fee (currently £5,000 for a single OGRA eGaming License). There are few prior qualification requirements, save for a company's ability to demonstrate a well planned business model; adequate security measures/ providers for operation and financial management plans, including those relevant to shareholders and stock market inclinations. The GSC conduct extremely thorough investigations of all new applicants, therefore a face-to-face interview with the Inspectorate is to be expected. Recommendations for any improvements or changes prior to a final decision being reached will be heard at the interview. It can take anywhere from 6 weeks to 3 months for the Inspectorate to reach a decision, at which time a formal hearing between the Inspectorate, Applicant and an OGRA investigating representative will determine the outcome of the application. At present, there are no allowances for appeal, therefore rejected companies must facilitate any changes and re-apply for a fresh Inspectorate Hearing.