Licence Drop Leaves Isle of Man Gambling Regulator Facing £778K Shortfall
The Isle of Man Gambling Supervision Commission (GSC) is facing a projected budget shortfall of £778,000 for the 2025–26 financial year, driven by a persistent drop in gaming licence applications and a rising number of licence revocations.
Fewer Licences Than Expected
The Commission plans to enter the new fiscal year with only 109 active licences. That’s far below the 148 licences forecast by the Treasury. As of now, the GSC regulates 84 online licences, five gaming machine suppliers, three bookmakers, and one land-based casino.
Licence applications have dropped in the last two years. The Commission expected 39 applications annually for both 2022–23 and 2023–24. Instead, it received only 22 and 26, respectively. These shortfalls led to 89 licences in 2022–23 (compared to the expected 102) and 99 in 2023–24 (versus the forecast of 127). For 2025–26, the GSC has revised its projection to 27 new licences.
Higher Attrition Adds Pressure
The number of lost licences has also risen. While the budget assumed a 15% attrition rate, the actual figure reached 17% in 2023–24. That’s up from 8% the year before. Over the past year, the Commission cancelled or suspended 25 e-gaming licences. It approved only 18 new ones.
Regulatory hurdles have grown. Seven applicants failed to meet standards and had their submissions rejected between 2023–24 and early 2024–25. The Commission’s stricter stance followed a high-profile case involving King Gaming. After police raids in April 2024, the regulator revoked King Gaming’s licence due to allegations of international money laundering and fraud.
Enforcement and Future Risks
To strengthen oversight, the Commission plans to create a dedicated enforcement unit. This could increase the number of fines for both current and former licence holders. However, it may also discourage new operators from entering the market.
The island also faces scrutiny from MoneyVal, a Council of Europe body that monitors anti-money laundering and counter-terrorist financing standards. The upcoming evaluation could affect how potential licensees view the Isle of Man.
In response to recent challenges, the GSC appointed Nicola Libreri as deputy CEO. She joined the Commission in 2018 and has led the AML/CFT Division. Her background includes compliance, enforcement, and blockchain analysis. She holds several diplomas from the International Compliance Association.