When you’re deciding where to base your online gamblingbusiness, the Isle of Man is very likely to end up on your shortlist. Sincepassing its OnlineGambling Regulation Act in 2001, this British Crown Dependency hasdeveloped into a highly regarded jurisdiction, trusted by eGaming businessesand consumers alike.
Located in the Irish Sea between Britain and Ireland, the Isle of Man entices gambling firms with a competitive tax regime, faster internet connections than the UK, and a clear regulatory framework administered by the Gambling Supervision Commission.
To help you learn more about eGaming in the Isle of Man, Xace has compiled the latest available statistics on gambling in the jurisdiction for 2023. To see how things have evolved, read our 2021Isle of Man statistics.
Isle of Man online gaming statistics and data
The eGaming industry plays a major role in the Isle of Man’s economy, and is a big driver of employment and revenue.
Size of the Isle of Man’s eGaming industry
As of April 2023, it is unclear exactly how important eGaming is to the Isle of Man’s economy, although the eGaming sector definitely represents a significant proportion of the economy.
The most recentlypublished statistics only go up to the 2020/21 tax year, and show thateGaming contributed 11.2% of the economy - or about £561 million. This is adecline from the 21% we reported in our last statistics roundup. However, thesefigures were almost certainly influenced by the coronavirus pandemic. It ishighly likely that the true numbers would have rebounded since 2021 – and whenthe next statistical bulletin is released, we would expect much healthierfigures.
While it may not yet be clear what proportion of GDP eGamingcontributes to the Isle of Man’s economy, there’s evidence to suggest thingsare very healthy. Earlier this year, the Gambling Supervision Commission announcedrecord increases in the number of licenses issued:
· 75 new licenses have been granted in the last 12months.
· This was a 15% increase on the previous year.
· It is also a 79% rise over the past five years.
How many gaming licences have been issued in the Isle of Man?
As of 2023, there are 85individual companies with online gambling licenses based on the Isle of Man– up from the 56 we reported in our last statistical update. Of this total:
· 44 companies had a full license.
· 1 had a sub-license.
· 14 had a Network Services license.
· 26 had a Software Supply license.
Several of these companies own more than one eGaming website– in total, license holders were responsible for running 114 websites based inthe Isle of Man.
As we noted before, there were just22 companies with eGaming licenses in 2020 – meaning the number of firmsoperating in the sector has almost quadrupled in the last 13 years.
Salary and employment in the Isle of Man online gaming sector
According to 2023 statistics,there has a been a 22% rise in eGaming jobs in the Isle of Man over the last 12months, with almost 1000 new jobs added. In 2021, 1,086 people were employed ineGaming, according to the census,so these figures suggest that at least 2,000 people now work in the industry.
Salaries in the eGaming industry are among the highest inthe Isle of Man. According to the 2022 EarningsSurvey, average weekly earnings for eGaming employees were £1,180 – thehighest of any sector.
Getting an Isle of Man gaming licence
The Isle of Man offers a relatively speedy licensesapplication process, with most approvals taking just 12weeks.
All licence applicants must pay a £5,000 fee, and licensesare renewed every five years. There are different fees for different kinds oflicense:
· Full licence: £35,000
· Sub licence: £5,000
· B2B software licence: £35,000
· Blockchain supplier license: £50,000
You can also apply for a Network License, which allows youto benefit from all the advantages of a full license, while also acceptingplayers registered with casinos outside the Isle of Man. This license costs£50,000 per year.
Tax for Isle of Man online gaming companies
The Isle of Man is a very attractive destination for onlinegaming companies when it comes to taxation:
· Corporation tax is set at 0%
· Gambling duty is also very low:
o GGY of £20m or below: 1.5%
o GGY of £20m-£40m: 0.5%
o GGY of £40m+: 0.1%
· Capital Gains Tax does not apply
· VAT is charged at 20%
Personalincome tax rates also make the Isle of Man an attractive place foremployees and business owners. In 2023/24, the following tax bands apply:
· The first £14,500 is not taxed.
· The next £6,500 is taxed at 10%.
· Anything above this is taxed at the maximum rateof 20%.
· The most any individual can be taxed in a singleyear is £200,000.
A strong gaming culture
Although most online casinos and betting firms on the Isleof Man target international markets, there is a strong local gaming culturetoo. A 2017 surveyrevealed that:
· 76% of Manx gamble at least once per year.
· 18.5% of the population gamble online.
· Around 45% agree that gambling livens up life.
· Around three quarters of Manx believe that mostpeople who gamble do so sensibly.
Online gambling is particularly popular amongst Manx sportsbettors – more choose to bet on sports online than using casinos or slotwebsites. Men are more likely to gamble than women on the Isle of Man.
An attractive destination for online gaming businesses
With record numbers of eGaming licenses issued in the last12 months, the Isle of Man is clearly on an upwards trajectory when it comes toattracting international gaming firms. And with its prime location, clearregulatory environment and competitive tax regime, the island’s appeal isclear.
If you choose to start your eGaming business inthe Isle of Man, you will need a banking partner. At Xace, we work withmultiple online gaming firms based in the Isle of Man, and can provide you withthe banking solutions you need as you get set up in this exciting gamingjurisdiction.