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Isle of Man to Introduce New Casino Regulations
- May 8, 2017 By Oliver Young -
Isle of Man, despite its small size, is one of the leading online casino licencing jurisdictions. The main reason for this status is the way it balances between ease of licencing and the guaranteed customer safety and quality. The British Crown dependency is facing serious competition from other gaming jurisdictions and in order to stay competitive it has to adjust its legislation in accordance with market needs.
Last year, it was announced that Isle of Man considers changing the rules regarding digital currency gambling in order to make things simpler for Bitcoin owners, as well as holders of other crypto-currencies. And now, it has been reported that Isle of Man regulators are seriously considering amending the country’s casino legislation.
More Efficient Licencing Procedures Proposed
The proposed Amendment Bill has already passed the second reading at the House of Keys. The House of Keys is the lower branch of Tynwald (the Parliament of House of Man) whose members are directly elected. The Government announced its plans to change the casino regulations regarding land-based casinos. The plan included introducing stricter anti-money laundering regulations, as well as more flexible rules regarding licencing.
Experts didn’t expect a serious opposition to the amendment and that was exactly the case. The Casino Act was passed more than 35 years ago and the original texted permitted the construction of two casinos on the island. At the moment there’s one active land-based casino. The amendments will allow land-based operators to relocate their casinos without losing their licence. Moreover, under the current law, one licence covers only one casino site.
The current law requires every bidder for a casino licence to provide a deposit worth one fifth of the estimated cost of the casino. If the new amendment is passed, it will give the country’s authorities the right to determine whether a potential operator should provide a deposit or not.
Gambling Supervision Commission with Increased Authority
In addition, the new law will also give greater authorisations to the Gambling Supervision Commission. The Commission will have the ability to cancel a casino licence if it detects any violations of the anti-money laundering provisions of the law.
The proposed amendments are a testament to the Isle of Man’s determination to remain a leading online gambling jurisdiction. The island’s authorities were one of the first that realised the importance of establishing a licencing system with concrete rules and provisions. In 2001 the IoM introduced the first set of regulations that were designed to meet the needs of the emerging industry.
Some of the major players in the online gambling market are licenced and regulation by IoM’s Gambling Commission. One of the key reasons why the island became one of the leading jurisdictions are the low fees. All holders of IoM gambling licence are supposed to pay a year tax of 1.5% on their GGY if their GGY is below £20, whereas if it is between £20 and £40 they are supposed to pay 0.5%. Companies that have a GGY over £40 pay only 0.1% in tax.
If the Isle of Man keeps its friendly fees, it’ll surely remain one of the leading online casino jurisdictions.