Isle of Man Gambling — Tax: What is the tax take?

## Application fees Different licences are available. The type of licence depends on the service being provided and not the product. The licences that are available are as follows: A main OGRA licence initial application fee is GBP 5,250. Sub-licences under OGRA can be obtained if the operator wishes to operate exclusively with a technology provider with a full OGRA licence. Players register with the sub-licensee but may then access games provided by the Isle of Man business partner’s game server. The business partner must hold a full OGRA licence. To qualify as a sub-licensee, the operator may only use the services of one Isle of Man licensed provider at any given time. The full OGRA licence holder, however, can offer its services to as many sub-licensees as it wishes and may register its own players as well. The cost is GBP 5,250 administration fee with the application, A Network Services licence must be obtained if the operator wishes to allow one or more players registered with another non-Isle of Man- licensed operator on to its Isle of Man server without re-registering the player details. The cost is GBP 5,250 administration fee with the initial application. Once granted, a licence lasts for an initial five-year period but can be renewed at the end of that period. A GBP 5,250 application fee applies to a renewal application. ## Ongoing fees A main OGRA licence (which covers all forms on online betting, gaming, and lotteries) costs GBP 36,750 per annum (or GBP 52,500 per annum for a Network Services licence) and runs for an initial period of five years. GBP 5,250 per annum thereafter for a sub-licence. A Network Services licence GBP 52,500 per annum. ## Any required minimum guarantee Not applicable ## Taxes ## Licence taxes Gambling Duty for online gambling operators is charged on gross gaming yield. The rates of the duty are: For gross gaming yield not exceeding GBP 20,000,000 per annum – 1.5% For gross gaming yield exceeding 20,000,000 but not exceeding GBP 40,000,000 per annum – 0.5% For gross gaming yield exceeding GBP 40,000,000 per annum – 0.1% For gross gaming yield from Pool Betting – 15%. ## Sales taxes The Isle of Man has value added tax at a rate of 20%. ## Corporate taxes Online gambling companies that are resident in the Isle of Man are taxed on their worldwide income at 0%. ## Capitalisation / Bank guarantees The GSC will require evidence that the operator has sufficient funds to run the business but there are no formal capitalisation requirements. However, if an applicant is part of a larger group and cannot provide evidence that it alone has the funds to run the business the GSC could in theory ask for a parent company guarantee or similar.