Isle of Man’s Gambling Reform Bill Passes Through Parliament

The Isle of Man is one step closer to making significant reforms to its gambling framework, after the Gambling Legislation (Amendment) Bill completed its passage through Tynwald (parliament).

The self-governing British Crown Dependency’s House of Keys agreed amendments made in the legislative council, and when announcing the update, the Isle of Man government said it hopes Royal Assent will be received before the July sitting of Tynwald.

What would the bill do?

The bill aims to consolidate existing laws and allow the Gambling Supervision Commission (GSC) to have more oversight capabilities. The proposed reforms would be made across a number of gambling acts, including the Gambling Act 2018, the Gambling Supervision Act 2010, and the Online Gambling Regulation Act (OGRA) 2001.

Under the terms of the bill, the GSC would have the power 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 has 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.

The bill would also give the GSC greater powers when it comes to investigative methods. 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.

What else could the GSC do?

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.

Treasury Minister Chris Thomas, who took the bill through the House of Keys on behalf of the GSC, said:

“I’d like to thank many in igaming who continue to provide insight into the implementation and impact of these changes, as well as GSC and Treasury officers for developing the bill, which is significant for this important sector.”

The GSC is currently consulting on elements arriving from the legislative changes, including issues such as how the new fitness and propriety standard will be assessed, and the implementation of a new civil penalty regime. Both consultations will run until Monday, 25 May.

Isle of Man attempting to grow further

The Isle of Man is a popular hub for gambling operators and suppliers, with 59 gambling business 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%.

In January, Digital Isle of Man, an executive agency within the island’s Department for Enterprise, said it was due to attend a number of events this year in attempts to attract more gambling companies to the jurisdiction.

Isle of Man’s Chief Minister Alfred Cannan spoke about “global environment challenges” and “emerging threats,” where he could have been referring to other igaming hubs in Europe, such as Gibraltar and Malta.