Isle of Man eGaming Licensing

Isle of Man eGaming licensing

MannBenham eGaming

We are a leading provider of advisory services to the online eGaming industry.

Welcome to MannBenham, the oldest and most experienced name in Isle of Man eGaming licensing. With almost 25 years of experience, we are perfectly placed to ensure you can make the most out of this business friendly Tier 1 jurisdiction.

Our experienced team is ready to assist you with anything from obtaining gambling licences, to setting up company structures and providing operational support and advice in all leading global markets.

We are the provider of choice for a growing range of high-quality eGaming operators and software companies

Unlike most other corporate service providers, the MannBenham Group combines expert lawyers, industry professionals, experienced regulatory compliance consultants, business operational specialists and technical advisors all under one roof.

With the ability to draw on extensive in-house knowledge and expertise we are uniquely positioned to provide you with a comprehensive range of pragmatic and compliant services that give you an unparalleled edge in the eGaming Sector.

We provide result-driven and practical solutions to our clients. Whether you are looking for an alternative provider or setting up a new operation we are here to help – and because some of us have worked as operators before, we also know exactly what it’s like to be in your shoes and what a great customer experience should look and feel like.

Despite our years of experience and growth, we have managed to retain our boutique approach to business that puts you at the heart of everything we do. Tailored solutions delivered in an easy to understand and transparent way are what we are all about.

www.mannbenham.com

What we do...

Our highly qualified and experienced industry professionals provide the right level of advice and expertise for all aspects of your business.

We work closely with you in the creation, delivery, and management of a company structure to meet your business needs, and provide direction and advice including:

■ Operator & Software Licensing

■ Company Formation & Structuring

■ Business Support & Continuity

■ eGaming Compliance & Legislation

■ Anti-Money Laundering

■ GDPR & Data Protection

■ Risk & Responsibility

■ Banking & Payment Provision

■ Accounting, Tax & VAT

■ Regulatory Reporting Frameworks

Licensing

We are the provider of choice when it comes to dealing with all your global licensing requirements, having assisted clients with licence applications for over twenty-five years. We project manage the licence application process, ensuring that the submission meets all the regulatory requirements of your chosen jurisdiction.

Corporate Governance & Administration

Our fiduciary arm, MannBenham Fiduciaries Limited, provides statutory corporate governance and administration support to egaming companies. This service allows you to get on with running and growing your business, secure in the knowledge that the statutory corporate governance and administration aspects of your business are well taken care of.

Company Formation & Corporate Structuring

We form companies, trusts and foundations, advising you on the best structure for your eGaming operation.

Provision of Directors

We can provide directors to licensed eGaming companies. Our directors are approved by the Isle of Man Gambling Supervision Commission.

Provision of MLRO Services

We can provide your operation with a Money Laundering Reporting Officer.

Compliance & Operational Support

Our specialist eGaming Advisory Team can assist you with the following: ■ AML/CFT Handbook

AML/CFT Training

Risk & Responsibility

Statutory Governance

Full suites of policies & procedures (for eGaming companies)

Payment Services

Accounting

Regulatory Reporting Frameworks

Fiat & Crypto Licenses ■ Tax & VAT

Immigration & Recruitment

If you wish to open your own office on the Isle of Man, then we can assist you in the recruitment process and through our law firm, MannBenham Advocates Limited, provide legal advice in respect of immigration matters.

In Summary

MannBenham eGaming along with our experts in company and trust formation will work with you to ensure you have a fully rounded commercial approach to optimise the setup, structuring and operation of your business.

Following the granting of a licence, or transfer of business, you will have access to our law firm and regulatory advisory services. These services will help you meet your on-going legal, compliance and regulatory obligations.

Whether you are a new start-up or an established organisation, our eGaming Advisory Team is ready to help you on the road to success by providing tothe-point, personalised and value for money advice and services.

www.mannbenham.com

The Isle of Man

The Isle of Man Gambling Supervision Commission (GSC) is the Gaming Control Board of the Isle of Man. It is an independent statutory board that was established to regulate most forms of gambling including land based (casino, amusement and slot machines, betting offices and lotteries) and online gambling services.

Why the Isle of Man

The Isle of Man is one of the premier jurisdictions for regulated online gambling.

Key Features

■ Low Gaming Duty ■ 0% Corporation Tax ■ 0% Capital Gains Tax ■ Low personal taxes ■ Favourble tax structuring ■ World class infrastructure ■ Stable & safe Tier 1 jurisdiction ■ Speedy application process

The Regulator

The Isle of Man is regulated by the Gambling Supervision Commission (GSC), who are always happy to advise on all aspects of the application process and on the general regulation of the sector. It also frequently shares its position on items of law and policy with prospective licensees.

The primary legislation regulating the online gaming industry is the Online Gambling Regulation Act 2001, commonly abbreviated to OGRA which covers all games where:

The Commission was established 60 years ago to protect the interests of players in the Island by ensuring that gambling remains fair and crime-free and that players receive their winnings. It was one of the first jurisdictions to offer legislation to regulate the activity of eGaming companies and create a secure environment for players. MannBenham was one of the first companies to work with the Commission on such projects.

■ They use telecommunications (phones, internet, servers, etc.); and

■ They involve players betting money (or money’s worth); and

■ The games incorporate any element of randomness or chance.

The legislation lays particular emphasis on three core principles of the GSC which are the requirements to:

■ Keep gambling crime free; and

■ Protect the young and vulnerable; and to

■ Ensure that the facilities offered by licensees are fair and that players receive their true winnings.

As a recognised and well-regulated gaming jurisdiction the GSC also has a duty to protect the reputation of the Isle of Man and where possible ensure that the Island’s economic interests are protected.

A place to thrive...

The reputation of an Isle of Man licence is invaluable to companies looking to establish or grow their global eGaming business. The Isle of Man has an excellent reputation as a Tier 1 regulatory jurisdiction, supported by a robust and mature licensing regime. There is one licence covering all gaming verticals, from casino and sports betting to poker, bingo and lottery –keeping it simple.

Isle of Man Licences

If your business model involves registering players and taking bets, you will require one of the three following licence options.

Full Licence

This could be considered the ‘standard’ licence. Full licence holders register their own players and keep their player data, and are responsible for anti-money laundering (AML) and know your customer (KYC) requirements relating to them. Full Licence holders can also allow other businesses to either Sub-Licence or White Label under them.

Sub-Licence

Sub-Licence holders must enter into an agreement with a Full Licence holder in order to operate, and they can only offer games they have either produced in-house and/or games the Full Licensee has the rights to offer. White Labels can be offered, and Sub-Licensees keep their player data; although they are responsible for their AML and KYC compliance as though they were a Full Licence holder.

Network Licence

These operate the same as a Full Licence, however Network Licence holders have more B2B options to complement their opportunities to Sub-Licence and White Label. Network Licence holders can enter into agreements with other operators located in other jurisdictions, who become known as Network partners once these agreements are in place. Network Licence holders can then allow the Network partner’s registered players to play their games without being required to re-register them, and they also do not have any AML or KYC responsibilities for these players, as this lies with the Network partner. No fees are due to the Gambling Supervision Commission (GSC) for adding Network partners; however, they do need to be reassured about the Network partner’s controls before being added.

Network partners are not liable to pay any duty or fees to the GSC. A revenue sharing agreement between the Network Licence holder and Network partner is generally in place and normal practice.

If your business model involves selling software services to other e-Gaming businesses, you can elect to apply for the Software Supplier Licence.

Software Supplier Licence

This licence is elective rather than mandatory, however many software businesses choose to become licensed in order to demonstrate adherence to top-tier Isle of Man standards, thus giving reassurance to B2B partners such as operators, banks, payment processors, investors, shareholders and others. Further to this, a software supplier holding a licence can have their products listed as approved on the GSC’s website, and any Isle of Man B2C operator can then deploy these games on their site without needing to acquire RNG testing certificates, as the GSC will have already received these from the software supplier. As well as software developers, the licence can also be applicable to other service providers in the gaming industry such as affiliates and live dealer studios.

Token-Based Software Supplier Licence

For blockchain enabled platforms, applicants must meet further conditions not applied to fiat platform applications which are as follows:

■ Applicants must prove their understanding of their technology.

■ Tokens must be available and not in development.

■ A news blackout will be enforced throughout the application process in order to prevent attempts to inflate the value of tokens.

White Label

As White Labels are treated as non-licensable, there are no licence fees or gaming duty due. Also, as no player data is held, there are no AML or KYC responsibilities to take care of. These duties would generally be performed by the licensee offering the White Label.

Under a White Label arrangement, a business would market a website, from which the services provided are processed by a licence holder, and thus all regulatory responsibility would lie with this licence holder. A revenue sharing agreement would generally be in place between the operator and the business. At times and where pre-agreed, an exit strategy may be arranged whereby the White Label can take the player data they have generated with them when their relationship comes to an end with the licensed operator. White Labels can typically go live within 4 to 8 weeks and can be a good introduction to the sector.

Simple Licensing Process

The Island’s business friendly regulatory framework provides a pragmatic licensing regime that seeks to protect the consumer and aid business growth.

The Isle of Man has a quick and simple licence application process that aims to provide you with a decision within around 12 weeks from submission of the application - this speedy process ensures your business will be fully operational in a timely manner.

There are three options currently available with regards to an Operator Licence, Full Licence, Network Licence and Sub-Licence: per annum

Full Licence (Operator Licence) £35,000

Network Services Licence £50,000 Sub-Licence £5,000

Software Supplier Licence £35,000

Token-Based Software Supplier Licence £50,000

Administration Fee with all initial applications £5,000

Isle of Man Online Gaming Duty

Gaming duty is charged as a percentage of gross gaming yield or retained profit on online gambling and betting.

Currently the rate of online gaming duty is based on the gross gaming yield as follows:

Not exceeding £20 million per annum 1.5%

More than £20 million, but not exceeding £40 million per annum 0.5%

Exceeding £40 million per annum 0.1%

Software Supplier Licensing

A software supplier license is available for any licensee that wishes to list software or related services on the register. Applications can be made for a software supplier license with the regulations which came into force in February 2019.

A token-based Software Supplier Licence is necessary for any licensee that wishes to make available software or related services which depend upon a block-chain dependent token as the primary means of exchanging value.

The licensing process is the same for a software supplier licence as it is for a standard OGRA license.

The licensing process for a token-based software supplier licence will incorporate additional tests around the availability of tokens and the proven business competence of those involved in the offering. There will also be reporting restrictions on an applicant during the approval period.

■ Both licenses have a £5,000 application fee

■ Software supplier licence costs £35,000 per annum

■ Token-based software supplier licence costs £50,000 per annum

■ Both licenses last for 5 years

Although the licence is voluntary, we have seen software businesses opting for this route as it demonstrates a strong commitment to the Isle of Man’s high standards. In turn, it offers reassurance to third-parties, such as operators, banks, payment processors, investors and shareholders.

Take your business to the next level with MannBenham eGaming

Having been assisting clients with licence applications for almost 25 years - MannBenham eGaming are the provider of choice when it comes to dealing with your Isle of Man operator and software licensing. We project manage the licence application process, ensuring that the submission meets with the Isle of Man regulatory requirements from start to finish.

We can assist you...

We have been assisting and advising clients in the Isle of Man eGaming Sector for almost 25 years.

■ At MannBenham eGaming we have brought together our corporate and advisory services, and legal background into one single-sourced offering.

■ As our client you will have access to our specialist lawyers in their respective fields of business law, gambling, cryptocurrency and blockchain.

■ With our corporate service provider part of the group we can create foundations and form structures; and working with our advisory team we can help implement, administer and manage those businesses on your behalf.

By drawing on all the resources within MannBenham eGaming, including multi-jurisdictional eGaming advisors, regulatory and compliance professionals, expert lawyers, and administrators, our clients find that this gives them a competitive advantage as they have all of the expert advice and experience they need at their fingertips.

Our proficiencies, knowledge and expertise enable us to provide a complete service, working closely with you to:

■ Liaise with local government.

■ Establish foundations, trusts and companies.

■ Look at legal and regulatory frameworks.

■ Deal with recruitment, immigration and visas.

■ Assist on government relocation incentives.

■ Process licence applications for both software and operators.

■ Transfer your corporate service provider.

■ Introductions to collaborate and sandbox services.

■ Help build your business on the Isle of Man.

We are here to support and guide you through any regulatory process, provide access to resources that will help build your business successfully and sustainably by increasing speed to value and continually developing our working relationship to one of trust and strength.

www.mannbenham.com