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IoM Launches B2B e-Gaming Licence

by Phillip Morton, Investors

25 July 2011

The Isle of Man has launched a new Network Services Licence for business-to-business e-Gaming operators.

The Network Services Licence is a new level of licence available under the existing Online Gambling Regulation Act 2001 (OGRA) and is designed to recognize the business-to-business relationships that many gaming operators now have. The licence aims to provide Isle of Man-based gaming operations the opportunity to make their platform available to business customers around the world.

The cost of the new licence is GBP50,000 (USD82,000) per year plus GBP5,000 per overseas customer. Duty will be paid on retained profit at a maximum rate of 1.5%.

It is anticipated that this new business model will not only attract new and larger businesses into the Isle of Man but it will also increase opportunities for those businesses already based on the island to develop relationships with companies across the globe. The government's Development Team is already talking to a number of interested parties.

Commenting on the launch, Garth Kimber, Head of e-Gaming Development at the Isle of Man government, said:

"The introduction of this level of licence gives us the ability to satisfy every model of gaming business in the Isle of Man from those selling their platform capabilities to other businesses to those with direct customers. Our system is now in three tiers; Network Services Licence, Standard Licence and Sub-Licence. The level of licence required is dictated by the type of business-to-business relationships a company intends to pursue and covers all gaming activities from sportsbook to poker and involves the same application process. All levels of licence are still processed in a maximum of 12 weeks."

"The creation of this new licence demonstrates our ability to keep pace with the dynamism of the e-gaming industry without over complicating licensing. There remain many activities such as software downloads and marketing for example, which can be carried out without the need for a licence as we are focussed on the key issues of regulation, protecting players by ensuring their funds are protected and that games are fair. We must continue to adapt our regulation and approach not only to ensure continued protection for players on our licensed sites but to remain a commercially attractive jurisdiction to all kinds of gaming business. Our close working relationships with customers and with the Regulator, Steve Brennan and his team at the Gambling Supervision Commission are central to this."

Commenting on this latest development, Minister for Economic Development, Allan Bell, said:

"I look forward to welcoming the additional business opportunities that will come from this new development. The strengths of the Isle of Man as an e-Gaming licensing jurisdiction continue to match the needs of some of the world’s leading gaming businesses but we cannot afford to rest on our laurels. This development opens the door to more diverse businesses and will only be positive in terms of economic value and eventually job creation for the island."

Alex Downie, Department of Economic Development member representing e-Gaming, added:

"The delivery of the Network Services Licence is a prime example of the collaborative approach that the Isle of Man adopts in developing the e-Gaming sector. It’s only through talking to the industry that we can hope to continue to meet their needs into the future."

A comprehensive report in our Intelligence Report series examining the new possibilities that offshore e-commerce open up for business, and analysing the offshore jurisdictions that have led the way in offering professional e-commerce regimes for international business, with a particular focus on e-gaming, is available in the Lowtax Library at and a description of the report can be seen at
TAGS: Isle of Man | tax | business | commerce | law | international financial centres (IFC) | offshore | internet | e-commerce | licensing | offshore e-gaming | regulation

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