The Isle of Man government is inching closer to enacting the Online Gambling Regulations Bill, a bill passed earlier this year that legalizes the operation of online casinos from within the country.
The Department of Home Affairs said the initial response from companies wanting to open up online casino operations on the island has been great. The office received nine applications for online gambling licenses before the passing of a recent deadline. Three of the nine will be chosen as the first operators in the jurisdiction.
According to a release by the government, the nine applicants included a wide range of companies and entities.
Three continents--Europe, Africa and North America--were represented among the applicants, whose names have not been released. The government hopes to pick the three chosen licensees by the end of the month.
The next step in the application process is an array of background checks on both the operators and the validity of the information they provided on the applications.
In addition to the three new licensees, the Home Affairs office said it is keeping a list of all applicants, including those who missed the deadline, and will ask the Council of Ministers to grant additional licenses to those entities.
Not only is the Isle of Man making the final steps in granting the new licenses, but the country is also making moves to better prepare itself for a new industry. Currently the country is home to several sportsbooks, but has never licensed any online casinos.
Part of the Online Gambling Regulation Bill set in place the groundwork for the formation of an online gambling forum. The forum will be comprised of representatives from companies licensed in the country.
The goal of the forum, according to a recent press release, will be to promote and sustain a credible jurisdiction for online gaming.
"Good regulation is crucial to the Isle of Man," the statement read. "Both the licensees and the regulatory authorities want to avoid reputation risk. An optimally regulated and commercially attractive on-line environment is in everyone’s interest. The establishment of the forum is designed to create an environment in which all participants can work together to achieve these aims."
According to the forum, very few currently operating online casinos are regulated appropriately.
"There are hundreds of casino sites on the Internet, but only a handful of these sites are regulated effectively," the statement said. "Up to now few well-known international brands have offered online gambling products to their customers."
The Isle of Man government isn't the only government subscribing to the school of thought that tighter regulations will actual bring more established gaming companies online.
Internet gaming expert Sebastian Sinclair feels that the Isle of Man is taking the right steps in bringing more validity to the industry.
"This has very positive implications for the regulation of gambling on the Internet," he said. "Although the policymakers in one nation do not have control of the actions of another, Internet gambling businesses operating in a tightly regulated environment have a large competitive advantage over those in less stringent locales. In short, it is our belief that the importance of regulation in consumer decision making matrixes will drive them to tightly regulated, recognized gambling companies in great numbers."
The forum will strive to make the Isle of Man one of those "well regulated" areas.
The Isle of Man relies heavily on the offshore finance sector for its economy and doesn't want to see online gambling sites imposing any risk to its reputation for financial integrity.
The forum is hoping that the new licensees will want to operate in a well regulated jurisdiction instead of a place where the possibility of commercial scandal threatening their brands' values is greater.
According to the statement, the forum will focus on six areas in developing the industry:
- Promote, develop, and safeguard the general interests of members of the forum one with another and with interested persons and organizations.
- Maintain by and among members a commitment to responsible well-regulated online gambling from the island with standards of conduct by which membership of the Isle of Man forum shall be recognized as an assurance of integrity, competence, and online services of high quality.
- Consolidate and maintain the prestige of Isle of Man online gaming and the status of members of the forum internationally.
- Encourage the maintenance of high standards of services and the progressive development of new high-quality and technologically advanced products.
- Work in partnership with the Department of Home Affairs to keep the department abreast of any problems and advising of any need for regulatory change or of deficiencies in the on-line gambling legislative frame work.
- Advise the department of changes in the world wide on-line gambling environment to assist the department in keeping the Isle of Man at the competitive edge of the world market in online gambling services.
Membership to the forum is confined initially to firms licensed under the Online Gambling Regulation Act 2001, members and officers of the Isle of Man Government and the advisers appointed under clause 11(2)(a) of the Act. Each licensee is permitted two participants, one of whom shall be the designated official. Firms with Restricted Betting Office licenses may be admitted to membership of the forum at the discretion of the Department.
After six licenses have been granted, the department will advise the forum of the name of any further applicants for online gambling and restricted betting office licenses as part of the license application procedure before recommending in the case of online gambling that additional licenses should be granted by the Council of Ministers.
The minister shall appoint the chairman for a term of office not exceeding two years. The chairman may be reappointed for further terms. The chairman will present to the department's administrator the suggestions and views of licensees and serve as a focus for consultation by the department. The chairman will additionally act as advisor to the department on all aspects of online gambling, including sports betting.
Under the guidelines of the bill, the forum will conduct at least four meetings per year. The chairman, assisted by the administrator and gambling executive officer, will be responsible for drawing up the agenda and producing minutes.
The proceedings of the meetings and associated business will be conducted on a strictly confidential basis.
Annual costs of the forum, estimated initially at £40,000, will be met wholly by the licensees.