Episode Transcript
[00:00:00] Of course, there are licenses you can get for 2 million, 10 million, $15 million euro pounds, whatever that is. But main licenses, the one that you may want to obtain, they are not made equal. So there are no two similar licenses that would be a substitute for all other licenses. Every license is different. So for example, the Curacao license, it works perfectly for startups. If you do not have tons of cash, you're just starting and you want to start and launch your business fast, right? Then the Kanawaki license, that comes as a master license and also without any corporate services. So you can have a company registered in Seychelles, Costa Rica, Cyprus, wherever you want and you will get a license, a Kanawaki license, Maltese license there's perfect for the European market where it's, you know, a, it will take you, it will be much easier for you to get the, any European, any local license. And also you can put all licenses under one umbrella, that will be the Maltese company and pay less taxes.
[00:01:09] So the same thing with Isle of Men license, which is also the tier one license. And it also, you know, fills a gap in between and takes a decent spot in between the licenses that you may want to have for your business. Just like many other companies have, many companies have all of them. So it's the carousel license, Maltese license, Kennewock, and also the Isle of Man license. So let's check how it's different, what it makes for your business, where to get one and how much it costs. Right. So the first thing is, how is it different? Why would you want to consider one? So, so first thing is taxes. So 0% of all taxes, all corporate taxes, capital taxes, dividends, they come with 0% tag attached. So it's super cool because it's outside of European Union. So just between, it's just next to the uk, to the Great Britain, which makes it a great location. So they have all the infrastructure that is there and if you need a local presence, they have all the infrastructure. They have banks, they have hosting providers, they have payments and system providers there. So they have a developed infrastructure for your business. But the main thing, I consider it to be something else. So I had a case last month with a client where they decided to launch a business in South America. I'm not going to mention a country specifically several countries, right. So now they have an issue with payment system providers for that certain country because they didn't want to connect any alternative payment system provider as they would lose on conversion rates.
[00:03:05] So the idea behind that was to connect the Visa in MasterCard. So Visa and MasterCard wouldn't allow them to work in this country under the license of Curacao. So they didn't have any choice actually. So they would have to go for something else. Not the payment processors themselves, right? Not Visa, not Mastica, something else. Alternative payment system providers. Now to solve this question, they would have to apply with tier one license. It's either the Maltese license or the Isle of Man license. As Visa doesn't restrict working on this certain market. If you have this Tier 1 license, which is awesome. So they have a huge, huge, huge benefit here. If you just pay more, the next thing is banks, of course. So an Isle of many have several banks, real banks, solid banks, like old school, old style, with all the benefits that banks provide.
[00:04:05] And you can work with all of them. Yeah, if you have this Isle of Mint license. Also software providers, system providers, plenty of them. And it's not that someone would deny your license. All of them will appreciate your business and you can sign 100% of them, right?
[00:04:27] That is not always the case with tier 2 license. Another benefit is of course investors. So if you want to attract to investment, it's always better if you have this tier one license because you will have your audits in place. Investor will know that the quality of earnings is there in place. So it's much easier to attract investment.
[00:04:47] It's easy to go in public liquid through IPO as you cannot do any of this with Tire 1 tier 2 licenses. And of course the huge benefit is the time. So you would say, like, why cannot we just use the Maltese license? Right? Because it provides huge benefits. Well, it does, but then you have to wait for almost a year to get one. When with the license of Isle of Man, all you have to do is to wait for three, four months and it will be there. You cannot do the same kind of trick as you would do with the Maltese license. Well, you would combine all European countries under one umbrella. Because now we speak of countries outside of European Union, we speak about South America, we speak of Asian countries, Middle east, we speak of that market. Right. So it benefits businesses that work outside of you, that want a decent entire one license and don't want to wait for a year to get one. Of course the license comes with quirks and features, there is no way around it. So you have to make sure that before applying for the license, you have certain things sort out.
[00:06:04] Because it's the license that will evaluate you and will decide whether or not you actually are good enough to apply for the license. Or maybe you still have to work out in a gym, do some legwork and do some, you know, preparation to actually go and apply for the license. So the very important thing is to have people in place. It's not as complicated as with Maltese license, but you still to incorporate the company on Isle of Man you would need two local directors.
[00:06:35] That's why it's very good to use corporate services providers as they can solve most of your issues related to labor, related to processes, related to board meetings and all of these kind of things. So two directories is something that is must have for the Isle of Man.
[00:06:57] Then you have to make sure that you have all key people. So you have to have beneficial owner. Of course, as you are the owner of the license directors you have to have AML Money laundering officer, right? So the person who would check on the quality of transactions and the quality of your clients. Now your games have to be certified. Just like with any other license out there. You have to work with decent third party providers.
[00:07:27] I will leave you a link just under this video or you can follow the link to check my post. And I'm leaving all information about all the third party providers that work with Isle of Man.
[00:07:39] When it comes down to most important people, which are your clients, the license of Isle of Men treat them as VIPs so you have to make sure that you have enough funds to cover all accounts of your clients and also potential winnings of the clients. So even though there are systems how to do that and proven ones, and as far as you work with the license, you will choose which one you want to use. You can even propose your own solution to this. So how you see the system, do you want to also combine this with banks and with loans? How do you want to protect your clients?
[00:08:17] As this is just something that is necessary and this cannot be somehow avoided because even if you go bankrupt, if your business goes belly up and you liquidate, license has to make sure that there is enough of funds on your account, enough of capital to make payouts to your clients. So they want to secure your clients in order to do business. That's the only way you can get the Isle of Man license, just like the Maltese license. And there are just four types of the license that you may consider. So it's not plenty 4. So the first is Ogra license Ogri, it's the main license. Like all games of skill, all games of chance, whatever there is, it's the main license for all operators out there that you may want to have. So this is the top choice when it comes down to operators.
[00:09:15] This Ograph license will also give you a benefit to issue sub licenses to your client. So imagine you write a game or you have a platform and now you sign an operator. So a person, your friend, decides to sell your game to the market.
[00:09:36] Now he has to apply for the license himself. So perfect scenario is where he has the same OGRA license, but that would make him pay some good cash for it, right? So not everyone is ready for this one. So he may sign an exclusive agreement between him and you, and then he would be applicable for a £5,000 license. So that would be well enough for him to go to the market and start his own business if he has this exclusive agreement between you. So the agreement has to be exclusive. He cannot sign this agreement with everyone. Otherwise there is no difference between this sublicense and OGRA license, right? So this is an exclusive agreement. And then he, well, you get all the benefits that you can have as a service provider, like B2B supplier.
[00:10:24] And as there is not so big barrier anymore, you can sign as many operators as you want. So the second license is the sub license itself, the one that I just described. So basically this is the license for all the operators that want to work with the OGRA license on exclusive terms. Then the third one is the network service license. That is the biggest and the fullest license and the most expensive license you can get on Isle of Man.
[00:10:54] So it includes all the benefits of OGRA license. Plus you can have your clients come from other jurisdictions without actually reapplying them doing this KYC process again.
[00:11:10] So imagine the scenario where you run a casino under the license of Curacao and you have 10,000 active clients. Now you get a license from I Love man. And, and you also certify your games.
[00:11:24] Your games are licensed with Isle of Man, your servers are licensed with Isle of Man. So you keep your client pack there. Now you want to introduce to your old clients in Curacao to your new game on Isle of Man. So you want to move part of your clients from Curacao to Isle of Men. So this license, the network license, it will allow you to do that without re registering your clients again. So it's super easy to do. Also the benefit is that you can actually upgrade your OGRE license or downgrade your Ogre license whenever you want. So for example, you just launched your Isle of Man operations and you want to move your client base to your new games on your new servers in Isle of Man.
[00:12:07] Now you can upgrade your Ogre license. You can do that and then you can actually downgrade so you don't have to pay the same amount every year if it doesn't make any sense for you. The last one is token based software provider license. So imagine you create tokens so clients can pay not using cash, regular cash, not fiat, not crypto, but using tokens, right? So you issue tokens. Now clients go there to support your business, support your casino. They buy tokens and they pay you in tokens. And then you make payouts to, let's say affiliates using tokens as well.
[00:12:45] So this license is for this case, for this scenario. So if you do something like that, you issue your own tokens, you would have to apply for this license as well, right? What do you need to do? So what do you need to do to get the license? So there are a few main things that you want to have in place. There are many other things, but this is something that I discuss either on my post or you can always reach out to us and we will be happy to help you with the licensing. Isle of man or Kanawaki or Curacao or Maltese license. So the first thing you have to make sure that you have all your ducks in a row where you have all your people. So the first and the main person is the UBO beneficial owner himself. Probably that's you, probably that's you with your partners. That's fine. Now you have to have your key people, you have to make sure that all directors are there. You have to make sure that your AML officers are there. So this is something that is necessary. Step number one. The step number two is detailed business plan. So you have to go in depth with your business plan for I Love man, as they will check this business plan against the reality. So they will check whether this business plan actually reflects the reality, the money that you have, people that you have currently, or is it just the dream or a plan that you might have and you cannot fulfill something your applications right now you have to do your business properly. What is important to understand that any price that is out there comes with the contribution. Unlike with the license of Curacao where you just pay the flat fee on a yearly basis, contribution means that you will pay additional amount based on your GGR.
[00:14:28] So if you make less than 20 million pounds, you will pay 1.5%. So it's like 30,000, right? Pounds if you make more than 40 million pounds. So the less you pay, the more you make, the less you pay. Over 40,000 pounds comes with 0.1% which is ultimately 40,000 alright, so that's it for the license of Isle of Man.
[00:14:52] If you have any questions then go check the link below. There is a phone number. There is the WhatsApp messenger in text telegram. There is nothing easier just to push that link and to send a message with your question. If you think that I missed something then also let me know. Probably I will make another video, so have a good time and see you soon in my next video. Bye.
