The Isle of Man is one of the oldest and most respected online gaming jurisdictions in the world. Since it issued its Online Gambling Regulation Act 2001, many casino and betting firms have chosen to setup shop on this British Crown Dependency.
Besides its clear regulatory environment, the Isle of Man boasts a highly competitive tax regime, excellent internet connections and a prime location between Ireland and the UK – two of the world’s biggest online gaming markets.
Deciding where to locate your online gambling business is a key decision, and should always be based on reliable facts and data. Xace has gathered key statistics about online gaming in the Isle of Man to help inform your decisions.
Isle of Man online gambling statistics and data
The Tynwald (parliament) has strongly prioritised the online gaming sector in the Isle of Man’s economy. The following online gaming statistics show how the jurisdiction is encouraging business in the sector.
Size of Isle of Man online gaming industry
Online gaming represents a significant proportion of the Isle of Man’s economy. The latest data shows the e-Gaming accounts for an enormous 21% of GDP – representing around £1.1 billion of a total £5.3 billion.
And this has been a high growth sector for the island’s economy. In 2012, gaming brought roughly £530 million to the economy, and about £690 million in 2015 – indicating that the sector has more than doubled in size over the past decade. Online gaming is arguably thefastest growing sector in the Isle of Man economy.
How many gaming licences have been issued in the Isle of Man?
According to government statistics, there are 56 companies with licenses to operate online gambling and betting businesses in the country as of May 2021. Of these:
· 29 have full gambling licences
· 10 have network service licences
· 16 have software supply licences
· 1 has a sub licence
Again, there has been massive growth in online gaming licences in the Isle of Man over the past decade. In 2010, there were just 22 companies with licences – meaning the number of firms operating in the sector has more than doubled in the last 11 years.
And the number of licences being issued shows no signs of slowing. Despite the global pandemic and economic slow down, the number of licence applications in 2020 actually shot up by 50% to 2021 according to the local gaming authority’s figures. A total of 21 firms have applied for online gaming licences since the beginning of 2020, and the gaming authority expects to have fully licensed 60 businesses to operate on the territory in the near future.
Some of the biggest names in online gaming based out of the Isle of Man include:
· Wow Entertainment
Employment in Isle of Man gambling
Over 1,000 people are employed in the Isle of Man’s online gaming sector, out of a total of around 42,000 working age adults.
The government is attempting to attractmore skilled professionals to work in the gaming sector through a points-based immigration system, while also investing in education.
Getting an Isle of Man gaming licence
The Isle of Man boasts rapid application processing times, with most licence applications taking between 10 and 12 weeks.
All licence applicants must pay a £5,000 fee. Depending on the type of licence applied for, annual renewal costs vary:
· Network license: £50,000
· Full licence: £35,000
· Sub licence: £5,000
· B2B software licence: £35,000
Tax for Isle of Man online gaming companies
The Isle of Man is a very attractive destination for online gambling companies when it comes to taxation:
· Corporation tax is set at 0%
· Gambling duty is a very low 0.1% to 1.5% (and this is based on profit, NOT turnover)
· Capital Gains Tax does not apply
Personal income tax rates also make the Isle of Man an attractive place for employees and business owners:
· The first £14,000 is not taxed
· The next £6,500 is taxed at 10%
· Anything above this is taxed at the maximum rate of 20%
· The most any individual can be taxed in a single year is £175,000
A strong gaming culture
Although most online casinos and betting firms on the Isle of Man target international markets, there is a strong local gaming culture too. A 2017 survey revealed 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 most people who gamble do so sensibly
Online gambling is particularly popular amongst Manx sports bettors – more choose to bet on sports online than using casinos or slot websites. Men are more likely to gamble than women on the Isle of Man.
An attractive destination for online gaming businesses
With its low tax, supportive regulatory environment and its hubs of online gaming businesses, the Isle of Man is clearly an attractive destination for firms operating in this industry. And as the ever increasing number of licence applications shows, many firms are deciding it is the right home for their operations.
So, will you choose to locate your online gaming business on the Isle of Man?