Online gaming

Home About the Isle of Man Online gaming

The benefits of establishing an e-gaming business in the Isle of Man include:

  • White-listed by the UK Gambling Commission allowing Isle of Man licensees to advertise to the UK market.
  • Low betting duty of between 1.5% and 0.1%, on gross profit.
  • World-class infrastructure, bandwidth and power resilience coupled with excellent data hosting facilities.
  • An extensive clustering of service providers / advisors and peripheral activities such as marketing, software and IT providers with experience in e-Gaming business on your doorstep.
  • Supportive legislation making the Isle of Man an ideal location for disaster recovery.
  • Consumer focussed regulation and player protection.
  • A simple application process of typically 10 -12 weeks.
  • A qualified work-force.
  • Political stability.

Businesses (which must be Isle of Man-incorporated companies limited by shares) need to be licensed by the Department of Home Affairs. As part of the application process, the directors and the beneficial owners of more than 5% of the applicant or its ultimate parent company need to provide information to the Department – in order to enable the Department to carry out its inquiries to satisfy itself that the company is controlled by persons of integrity and managed by persons of competence and integrity.

A licenceholder must have a “Designated Official” who must be a director and reside permanently on the Island.

The profits of an online gambling business can, if structured appropriately, be taxed in the Isle of Man at 0%.

Online Gambling Duty is payable on gross gaming yield (which is defined in detail, but is, broadly, bets less winnings and prizes) as follows:

  • 1.5% on yield not exceeding £20 million per annum
  • 0.5% on yield of more than £20 million but not exceeding £40 million per annum
  • 0.1% on yield exceeding £40 million per annum.

A separate regime, from the above, applies for internet and telephone sports betting. The profits can, again, be taxed at 0% and betting duty is payable, the rate depending on the place where the persons placing the bets are located.

In the case of both regimes, licence fees are payable.