Isle of Man GSC to Move Forward With Reform Bill After Consultation

The Isle of Man’s Gambling Supervision Commission (GSC) has released a summary of responses to its consultation on the draft of its GSC Bill, with responses being generally favourable.

What the bill would do

The GSC Bill is part of the regulator’s plan to reform gambling legislation in the British crown dependency. It aims to consolidate existing laws and allow the GSC to have more oversight capabilities. The proposed reforms would be made across a number of gambling acts, including:

• Gambling (Anti-Money Laundering and Countering the Financing of Terrorism) Act 2018
• Gambling Supervision Act 2010
• Gambling (Amendment) Act 2006
• Online Gambling Regulation Act 2001 (OGRA)
• Casino Act 1986
• Gaming, Betting and Lotteries Act 1988
• The Gaming (Amendment) Act 1984

A number of points were raised in the consultation which the GSC aimed to address.

Unlicensed operators can be investigated

The GSC acknowledged concern about the bill giving the GSC the powers to inspect and investigate unlicensed B2B software suppliers who have lawfully chosen not to hold a license under the current elective framework of the OGRA 2001. The GSC emphasised these powers would be purely investigatory and that it does not impose regulatory obligations on unlicensed entities. The GSC will investigate where it has reasonable grounds to do so.

Outside help if necessary

The second point raised was regarding who would be exercising the investigation and inspection powers. The GSC would be carrying out the investigations, but other persons outside the GSC may be appointed on a case-by-case basis, should the GSC not possess the required skills to manage the process itself.

Power to enter private dwellings

Another issue raised was the power to enter private dwellings. Should the GSC reasonably suspect online gambling is occurring from any premises, then the GSC would have the right to enter the premises; even if it is a private dwelling. However, the GSC would have to provide 24 hours’ notice of the intended entry and would need the consent of the occupier.

Investigation of former license holders

There is also a possibility the GSC could investigate former license holders, but this would only be in circumstances where the GSC has reasonable grounds to believe any possible historic misconduct has occurred. The GSC would only be able to investigate events from the time in which the investigated company was licensed on the Isle of Man.

What happens next?

The GSC will be progressing with the draft amendments as outlined in the consultation. The GSC said: “The responses provided above have been issued to address specific concerns that were raised in relation to some of the proposed new powers.

“The way to address the concerns raised will be through appropriate, proportionate and justifiable use of the powers, most of which will be made clear through public facing guidance, into the GSC’s policy around the use and exercise of these powers. The GSC concludes that the proposed powers will be progressed in their current form.”

Isle of Man’s popularity

The Isle of Man is a popular hub for gambling operators and suppliers, with 63 gambling businesses currently being licensed by the GSC, including the likes of GG International, Evolution and EveryMatrix.

The island is associated with low tax rates. Companies are taxed at 1.5% of gross gaming yield (GGY) up to £20 million. The rate drops to 0.5% of GGY between £20 million and £40 million, and GGY of more than £40 million is taxed at 0.1%.

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