Isle of Man Gambling Regulator Highlights Enforcement Gains Amid Market Pressures

The Isle of Man Gambling Supervision Commission (GSC) is working to showcase progress in enforcement and anti-financial crime measures over the past year as the jurisdiction seeks to preserve its standing in a global regulatory landscape that has become increasingly competitive.

Once seen as a trailblazer in the regulation of online gambling, the island has more recently faced setbacks, with several operators surrendering licenses and exiting the market, while rival jurisdictions such as Malta, Anjouan, and Curacao have grown their international presence. Against this shifting backdrop, the GSC is underscoring its focus on international compliance standards and the integrity of operators that continue to be based locally.

A central development has been the introduction of a new enforcement framework in 2024, designed to align the GSC’s supervisory approach with evolving expectations around anti-money laundering and countering the financing of terrorism (AML/CFT). More than a year after its adoption, the framework has already been applied to levy sanctions and civil penalties in cases where remediation was not achievable.

Since April 2023, the regulator has carried out 57 AML/CFT-focused inspections using a risk-based methodology that prioritizes licensees according to their size, business model, and compliance record. Around 10 per cent of these inspections have escalated into enforcement investigations, although the majority of shortcomings were resolved through remediation efforts and educational measures.

The GSC has also made use of thematic desk-based reviews, drawing on international assessments such as those published by the UNODC, to sharpen its oversight of emerging risks. These reviews have directly informed targeted inspections, guided the National Risk Appetite Statement released in May 2025, and influenced the legislative reforms that are currently underway to further fortify the island’s resilience against criminal exploitation.

Enforcement, the regulator stresses, remains a last resort. Remediation is the preferred path wherever possible, with enforcement actions applied in cases of repeated breaches or material risks that cannot be addressed. In some instances since April 2023, enforcement investigations were brought to a halt when operators opted to relinquish their licenses altogether, echoing the broader trend of market exits.

Expanding cooperation with local and international authorities has been another key area of focus. Earlier in 2025, the GSC formalized a data-sharing arrangement with the Isle of Man Police, enabled by new provisions under the Gambling (Permitted Disclosures) Order 2025. At the same time, memoranda of understanding with regulators abroad are being refreshed to improve cross-border collaboration and information exchange.

Looking to the future, the commission has said it intends to strengthen its capacity for data analysis, refine the scope of its risk-based oversight, and deepen engagement with stakeholders. Officials are keen to stress that these measures are intended to protect the island’s reputation and reinforce its status as a credible location for regulated business.

Yet the timing of this message is particularly important. With the number of license holders continuing to dwindle, a MONEYVAL evaluation looming, and rival jurisdictions working aggressively to capture market share, the Isle of Man faces the challenge of proving that rigorous oversight can go hand in hand with a business environment that remains attractive to operators.

As the B2C grey market model gradually disappears, the island is being forced to reinvent its regulatory and commercial positioning. The focus, according to industry observers, must shift toward more sustainable B2B operations while the GSC itself modernizes and undertakes internal reforms in order to keep pace with market realities and maintain competitiveness.

By fLEXI tEAM