For Operators and Software Suppliers considering applying for an online gambling license in the Isle of Man, this article will guide you through the steps you need to achieve this. There are several key areas which include requirements, the licencing process, fees and expectations.
1. Company Establishment and Requirements
Incorporating a Company
Having an Isle of Man company is mandatory to apply for an Isle of Man gambling licence. The Isle of Man has two types of companies, the 1931 Act and the 2006 Act companies. The key differences between these two types of companies revolve around their governance, administration, and disclosure requirements.
Local Directors
Isle of Man licence holders require a minimum of two Isle of Man resident directors. These directors can be employed by the licence holder or provided by a local corporate service provider. Each director should have relevant expertise and will be vetted by the Isle of Man Gambling Supervision Commission (GSC).
Designated Official and Operations Manager
The licence holder will need to provide at least one director from their team and that director will also hold the title of Designated Official (DO). In addition to this, if the DO resides outside of the Isle of Man, one of the resident directors will be required to hold the title of Operations Manager (OM).
Local Servers
Operators are required to have servers located on the Isle of Man. The Isle of Man is home to five data centres, each with resilient cooling, power, and security infrastructures. Each data centre can offer services such as colocation, cloud solutions, IP transit, and managed hosting. It is not mandatory for software suppliers to have local servers.
2. The Licencing Process
Online Gambling Requirements
Operators and Software Suppliers should familiarise themselves with the Online Gambling Regulation Act (OGRA), the legislation for online gambling in the Isle of Man. In addition, they should carefully read the guidance notes on the Isle of Man Government’s website outlining the license application requirements, AML/CFT requirements and ongoing monitoring requirements.
The Application Steps
- Identify the type of licence that fits your business model.
- Gather all the necessary documents for your application including application forms, business plan, financials and policies and procedures.
- Submit your application and expect questions from the GSC in respect of your application.
- Attend the licence hearing.
3. Roles and Responsibilities: Duties of Officials
Keep the Commission Informed
Key Officials, including the DO, the Directors, the Money Laundering Reporting Officer, the AML/CFT Compliance Officer and other Officials are expected to apply the highest standards when operating under an Isle of Man gambling licence. Key Officials should familiarise themselves with the GSC’s requirements and be sure to notify the GSC of any significant events in your business.
4. Counting the Costs: Fees
Here’s a full breakdown of the fees associated with OGRA licences:
- OGRA application (all types): £5,250
- OGRA full licence: £36,750
- OGRA sub-licence: £5,250
- OGRA network services licence: £52,500
- OGRA token-based software licence: £52,500
- OGRA software supplier licence: £36,750
5. Core Principles Upheld by the GSC
- Crime-Free Industry: The GSC aims to keep the gambling industry free from any illegal activities.
- Protection of Vulnerable Individuals: Shielding young and at-risk individuals is a top priority for them.
- Fair Services: License holders must offer fair services, and players should always receive their true winnings.
6. Getting Started
Quadrant Gaming
At Quadrant Gaming, we are dedicated to delivering unparalleled service to our clients. Our team can guide you through the Isle of Man licencing process from start to finish. Our expertise in the gaming industry is comprehensive and our proficiency spans the entire range of eGaming activities, including accounting, provision of key officials, operations, compliance, licencing, corporate management and company formation.
Contact
If you wish to speak to one of our team to discuss applying for an Isle of Man licence, please email Tim Cox, Director of Quadrant Gaming, at tim@quadrant.im
Alternatively, you can visit our website at https://quadrant.global/egaming/.
