Isle of Man Jurisdiction

Aside from being one of the primary destinations for online gaming operators, the Isle of Man is one of the oldest inhabited places involved in the gambling industry. It is said that this very small island, located in the Irish Sea (between Great Britain and Ireland) has been inhabited since at least 6500 B.C. The Isle of Man is formally classified as a self-governing British Crown Dependency. With a total population of just over 84,000 people, the internet gaming industry is considered one of the biggest employers on the island. Click for Isle of Man bingo sites and poker rooms. T&C's apply to all bonus offers on this site. Click for a list of all jurisdictions.



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Isle of Man Gambling Supervision Commission

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Based on Isle of Man's prime location amongst so many large gambling nations, it took advantage of its self-governing status and set up the Isle of Man Gambling Supervision Commission. The commission was enacted back in 1962. It wasn't until 2001 that the Isle of Man government passed legislation that would provide licensing regulations related to e-gaming with the passage of the Online Gambling Regulation Act 2001. The two primary functions of the commission are player protection and external testing/monitoring of gaming systems through third-party agents such as eCOGRA and ITLabs. In September 2012, the Gambling Supervision Commission entered into an unprecedented "Cooperation Agreement" with another powerful e-gaming regulator, the Malta Lotteries & Gaming Authority.

Why Isle of Man?

Isle of Man provides the prefect jurisdiction for any type of business organization seeking refuge from high taxes. Under the Isle of Man tax code, the highest possible tax rate is 20%. Under special tax rules designed to attract online casino and sports book operators, the effective tax rate for these entities is significantly less than the cap. Of course, the Isle of Man e-gaming operators still have to pay taxes to England on any profits derived from its citizens. Other reasons for locating on the Isle of Man are the strong economy, stable economy and low employee wages.

Key Legislation

Many jurisdictions that allow their citizens to use online gambling sites are very sensitive about advertising that is put forth by online casino operators. Under the advertising guidelines handed down in 2007, all online casino and sports book operators/owners are prohibited from excessive and fraudulent advertising practices. That same year, regulations related to technology testing were also issued. Under these guidelines, e-gaming operators are required to submit written certification from an independent third-party that certifies their site as fair and safe. Additionally, the online site must be willing to submit to random external audits at the request of the Gambling Supervision Commission. In an effort to protect player's deposits, there are three regulatory requirements. First, the operator must maintain an Isle of Man bank account. Second, they must setup a "trust fund" to use collateral against the inability to payoff players. Thirdly, they are required to obtain a bank guarantee where the bank is going to payoff any amounts not paid by the operator. Finally, the Isle of Man has set up free services for individuals and family members of individuals who may have a gambling problem.

Click to visit Isle of Man Gambling Supervision Commission official website.

By Denise Marie