The Isle of Man is a very reputable gambling jurisdiction that offers licensing to corporations abroad. The island's government, unlike many around the world, actually encourages the development of online gaming business on the island.

The powers that be remain completely committed to being a strong regulatory force in the world of e-gaming. The Isle of Man accepts applications for licensing, implements a thorough vetting process, and grants a license only if all standards are met.

From the time internet gaming exploded, the Isle of Man has been right in the middle of the action. Wishing to seize the opportunity and create more economic prospects, the Isle of Man became one of the first jurisdictions to introduce gaming legislation that was specifically formulated to help benefit gambling and various online firms.

They also worked hard to ensure that all customers were amply catered to and protected at all times. Since their entrance into the online gaming world in 2001, the Isle of Man has implemented many changes into their policies and regulatory controls. They're far more aware and responsive to the business.

The Gambling Supervision Commission on the Isle of Man was founded in 1962. Since then, the small governing body has led the way with big changes throughout the world. Along with the private sector, the government works hard at creating a superior infrastructure, thus attracting business and resulting in economic growth. Since its inception, player protection has been one of the isle's top priorities.

Today, the Isle of Man is considered a basic model for online gaming in countries that either seek their licensing or wish to implement their own infrastructure and promote e-gaming. However, the Isle of Man experienced a few setbacks along the way. In 2003, no gaming operators held a license from the jurisdiction due to a sudden crash in the market.

Since then, the island has restructured and improved regulations. The Department of Trade and Industry oversees the licensing, and the previous $2 million USD security bond has been renegotiated which works to make licenses much more affordable for smaller operators.

In 2005, the Isle of Man improved their regulations and laws, and now no income tax is taken out of the e-gaming sector. This has prompted even more business, and while there are less than 20 operators licensed with the island, they are among the most successful online gaming venues around.

In order to apply for a license, operators must pay a fee of 1,000 GBP that is non-refundable. A thorough inspection process then takes place, wherein each prospective operator is rigorously checked for credibility. On the application, operators must make clear that they will abide the standards of the island and the Online Gambling Regulation Act of 2001 that made it legal.

Applicants must also demonstrate fairness in their games, keep enough money reserved for payouts whenever requested, and excel in the community as a reputable gaming provider.

The annual license fee is 35,000, and also there's a 1.5% tax on gross gaming yield, the corporation tax is 0% so long as the site does not accept bets from Isle of Man residents.

Corporation Tax Rate
0% (if bets are not accepted from Isle of Man residents)

Gaming Tax Rate
Duty payable on retained gross profits:
- 1.5% for gross gaming yield not exceeding £20million/year
- 0.5% for gross gaming yield from £20-40million/year
- 0.1% for gross gaming yield over £40million/year
The exception is Football Pools which carries a £15 duty rate.

Minimum Share Capital for iGaming Company
By discussion as part of the licence application process

Security Requirements / Indemnity for Player Deposits
Operator must demonstrate full protection of player funds. It is intended that legislation will ensure this is acheived purely by a separate holding account at the bank from 4th quarter 2009.

Licence Fee
£1000 application fee, then £35,000/year.

Licence Length
5 years then renewal is required.

Software Testing Requirements
Certificate from an approved testing house is required as part of the licence application process.

Reporting Requirements to Regulators
Access to business, its systems and ausited accounts when requested by the Gambling Control Commissioners.

Anti-Money Laundering Policy
Full AML due diligence. Indemnification procedures, record keeping, internal procedures, education and training, as well as adherence to the Isle of Man Gambling Control Commissioner's Guidance Notes for the Prevention of Money Laundering.

Country Restrictions
It is the responsibility of the operator to decide on these matters, however the Gambling Control Commissioners may request for independent advice be taken, and to see this advice on request if they have a concern regarding a specific target market.

Contact Details
Head of eGaming Development,
Department of Trade and Industry,
Hamilton House,
Peel Road,
Douglas,
Isle of Man
IM1 5EP

Tel: ++44 1624 682307
Email: egaming:@dti.gov.im