How to get a gaming license in Isle of Man 2024

The Isle of Man gaming license is able to offer online gambling licenses in a variety of jurisdictions. Isle of Man itself is a British Crown Dependency that’s in between England and Ireland. Due to the low-tax and the fact it’s not governed by British law, it has its own gambling regulatory body. Island of Man has made themselves one of the leading jurisdictions based on their location, regulation, and administration with online casinos.

The Isle of Man gambling license has a controlling body, the Gambling Supervision Commission, which was established in 1962. It was originally established as an independent land-based gambling operation regulator. However, with the exponential growth of online casinos, it is also responsible for online gambling activities as well. This commission was one of the first to regulate online gambling in 2001 when it issued the Online Gambling Regulation Act 2001. This was designed to protect players while also supporting operators of online casino sites.

An Isle of Man gambling license is regulated by the commission, encouraging a successful iGaming business that adheres to anti-laundering and anti-crime, youth protection, and fair gaming services to players. It’s the commission that processes the applications for a gambling license, managed registration of any software and licensees.

The gambling license Isle of Man is open and welcoming to the gambling industry but the Commission standards are strict. They focus on fair and responsible gambling. While there are strict requirements when it comes to regulations, this is what keeps the Isle of Man gambling license credible to players. If you’re curious about how to get casino license you can always refer to our go-through articles.

What happens if you operate without a license?

In most cases, operating an online casino without a license is illegal. It can lead to penalties like fines or even prison. For example, Belgium will punish unlicensed casinos with fines of up to €800,000 or prison for up to five years. The UK considers unlicensed gambling as a criminal offense that can lead to prison time and massive fines. The website in question will be blocked so it can never run again.

Beyond the legal ramifications, your activities on a casino site that’s unlicensed will be limited. Any of the top game providers and financial institutions won’t have anything to do with an unlicensed operator. It puts them at risk of losing their licenses. Without a good range of games and payments, an online casino isn’t going to thrive.

Most unlicensed gambling sites are going to be shut down without question. The reputation in the gambling industry is the main focus as it’s often scrutinized. To have a successful online casino, it’s important to build trust. No player is going to choose an unlicensed online casino instead of a legitimate site that’s proven itself. Without a license, you won’t be able to prove that you’re credible or reliable so your business will flounder and you may have to deal with heavy fines or a criminal record. For all these reasons, operating without a license doesn’t make much sense if you’re looking to succeed in the online casino industry.

Gambling license Isle of Man applicants need to demonstrate transparency and credibility. Each person and company that has a connection to the application will go through a background check. This includes legal and financial due diligence checks. More information may be required during the application process. You will be required to expose your business model including terms and conditions of contracts, internal system control, player registration, and other aspects of your online casino. It takes between 10 to 12 weeks for the application to be processed. It can take a little longer if the application isn’t completed with the information required.

Here’s a list of documents applicants need based on Isle of Man licensing laws:

• Business plan in full detail;
• A list of the games that will be offered;
• A third-party RNG certificate;
• Description of the software and tech system testing report you’ll be using;
• Confirmation of the RNG application;
• Description of your target market;
• Proof that the servers are located in the Isle of Man;
• Bank references;
• Confirmation of no criminal record. A certificate that’s been issued within the last 3 months;
• Notarized copy of identification like a passport;
• Utility bills.

Who issues Isle of Man sublicenses?

Operators that have full licenses can issue sublicenses out to operators that are just moving into the gambling industry. The sublicenses cost the holder with the full license £5,000 for each such partnership. It’s a good option for someone that has a database of potential players but doesn’t have their own gambling products.
A sublicense binds you to the holder of the full license by an exclusive agreement. If you have a registered sub license usually has an expiry date of five years. While you have a sub license, you can apply for your own full license and become independent.

Types of Isle of Man Gambling Licenses

Isle of Man gambling licenses vary, covering all the types of online gambling an operator could want. This is based on business models and objectives. There’s the options of you having your own gaming content or only databases of potential customers. Online casinos are given a 5 year license but this can be revoked at any time if terms are violated. Here are the different gambling license options:

Full License

This is the main OGRA license that operates B2C. You’re able to register your own players and store data. You can also offer other operators a White Label Solution for a platform, providing a platform, content, and business solutions. They must adhere to the requirements of the Isle of Man requirements. License holders are able to partner up with other operators and offer games and software. You’re not responsible for the operator and their legal activities but can offer a sub-license from the Commission. Full license holders can be connected to a number of sub-licensees for an additional fee with each partnership. This full license covers a gauntlet of activity including:

• B2C operation;
• Ability to collect and store player’s data;
• Operation of the platform and games;
• Access to partner up with a number of sub-licensees and offer White Label solutions.

Sub-license

Operators who are new to the gambling industry but want to enter the market to establish an online casino could benefit from a sub-license. This license is a great option for companies who have a database of potential players but don’t have gambling products of their own.

They are granted with a reduced fee and are connected to a licensee who has a full license. You have to make an exclusive agreement with them. As a sub-licensee, your players have access to games and software of the full license holder. Fees are much lower and it gives you an opportunity to make a name in the online casino world. Here are the benefits:

• B2C operation;
• Lower fee;
• Ability to collect and store player data;
• Opportunity to partner with a full licensee;
• Access to all of the games and software the full licensee has.

Network Services License

This license offers the same rights as the full OGRA license. The difference is that those with the network service license can additionally accept players that are registered with online casinos in other jurisdictions. Players don’t have to register or go through the KYC check again and player data is easily, securely migrated to the server in Isle of man.

However, the chosen partner would have to comply with the KYC check. There are no prescribed contract terms but you do have to commit to offering fair, legit online casino services. There’s no fee for adding partner operators to your network. Also, this Isle of Man gaming license gives more opportunity to reach different markets on a more global scale. It is available for:

• B2C operation;
• B2B software supplier license;
• The ability to collect and store player data;
• Operate with your own technology;
• Ability to partner up with a number of sub-licensees and offer White Label solutions;
• Software Supplier License.

It’s not necessary to have a software supplier license in order to offer software from an Isle of Man licensee. There are benefits though as it looks good for any online iGaming platform’s reputation. There are two kinds of licenses, one for FIAT online casinos and one for those who provide blockchain-based software providers.

To obtain an Isle of Man gambling license, there are certain requirements that need to be met based on the Online Gambling Regulations Act 2001 (OGRA):

• Your company needs to be incorporated in the Isle of Man.
• There must be two resident Directors representing the company.
• There needs to be a Designated Official or Operations Manager and they have to be an Isle of Man resident.
• B2C licensees will need to register their players on servers in the Isle of Man.
• An application fee of £5,250 must be paid and all application forms must be completed.
• B2C licensees must be able to protect player funds.
• All games, RNGs, and gambling systems must be certified by registered third party authorities like eCogra.
• Anyone involved in your company will be subject to Due Diligence obligations.
• You must comply with all policies to protect players, follow codes, and the anti-money laundering policy. If you don’t, your license can be revoked.

Documents that are Necessary for Company Registration

Documents needed for company registration include:

• A detailed business plan
• Descriptions of casino games that will be offered
• Third-party RNG certificate
• Description of the software being used
• Description of Technical System Testing report
• Information on the target market you’re aiming for
• Proof that your servers are located in the Isle of Man
• Proof of no criminal record
• Notarized copies of photo ID
• Banking information
• Utility bills to prove residency

Here is the Isle of Man gaming license list, including the costs for applying and various license options and their cost.

How Long Does it Take to Get a Isle of Man Gambling License

Once you’ve handed in your application, it can take between 10 to 12 weeks to process. If you haven’t correctly completed the application, it can take longer. This is one of the negatives when it comes to the Isle of Man gaming license. You will also want to consider the amount of time it will take to get all of the paperwork in order. This can take awhile as you have to collect documents and notarize copies. So while the licensing process takes up to 3 months, there’s a lot to prepare for the application.

There’s a few things you’ll need to do if you want to switch licenses as an existing operator. This includes: