Online Gambling Regulation Act 2001
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AT 10 of 2001
ONLINE GAMBLING REGULATION ACT
2001
Online Gambling Regulation Act 2001 Index
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ONLINE GAMBLING REGULATION ACT 2001
Index Section Page
Control of online gambling 5
1 Meaning of “online gambling” etc ............................................................................... 5
2 Restrictions on online gambling ................................................................................... 6
3 Exclusion of certain activities ........................................................................................ 6
4 Licensing of online gambling ........................................................................................ 7
5 Licence fees and duties .................................................................................................. 8
6 Conditions of licence ...................................................................................................... 8
7 Duration of licences ........................................................................................................ 9
8 Renewal of licences ......................................................................................................... 9
9 Variation and transfer of licence ................................................................................... 9
10 Designated official ........................................................................................................ 10
10A Designated official outside the Island ....................................................................... 11
Enforcement 12
11 Duties of Commissioners ............................................................................................. 12
12 Obligations of holder of licence .................................................................................. 13
13 Cancellation etc of licence ............................................................................................ 13
14 Effect of cancellation etc of licence ............................................................................. 15
15 Control of management, advertising etc ................................................................... 15
16 Rights of entry, inspection etc ..................................................................................... 16
17 Beneficial ownership .................................................................................................... 17
18 Offences .......................................................................................................................... 18
Miscellaneous and supplemental 19
19 [Repealed] ...................................................................................................................... 19
20 Licences not to be assigned ......................................................................................... 19
21 Regulations .................................................................................................................... 19
22 Exemption from certain restrictions ........................................................................... 21
23 Online gambling contracts to be enforceable at law ................................................ 21
24 Notices ............................................................................................................................ 21
25 Interpretation: general ................................................................................................. 21
26 Short title ........................................................................................................................ 22
Index Online Gambling Regulation Act 2001
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SCHEDULE 23
AMENDMENT OF ENACTMENTS 23
ENDNOTES 25
TABLE OF LEGISLATION HISTORY 25
TABLE OF RENUMBERED PROVISIONS 25
TABLE OF ENDNOTE REFERENCES 25
Online Gambling Regulation Act 2001 Section 1
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c i e
ONLINE GAMBLING REGULATION ACT 2001
Received Royal Assent: 15 May 2001
Passed: 15 May 2001
Commenced: 15 May 2001
AN ACT
to provide for the regulation of certain forms of gambling carried on
by means of telecommunications; and for connected purposes.
Control of online gambling
1 Meaning of “online gambling” etc
(1) In this Act “online gambling
” means —
(a) any gaming, where any player enters or may enter the game, or
takes or may take any step in the game, by means of a
telecommunication,
(b) the negotiating or receiving of any bet by means of a
telecommunication, or
(c) any lottery in which any participant acquires or may acquire a
chance by means of a telecommunication.
(2) For the purposes of this Act, a person “conducts” online gambling
where —
(a) in the case of gaming or a lottery, he takes part in its organisation,
management or promotion;
(b) in the case of a bet, he carries on any business involving the
negotiating or receiving of the bet; or
(c) he maintains, or permits to be maintained, in the Island any
computer or other device on or by means of which the game or
lottery is operated, or the bet is received, as the case may be.
(3) A service provider shall not be treated as conducting online gambling by
reason only that, in the course of a business, he handles electronic
communications on behalf of another person with whom he is not
associated.
(4) In subsection (3) —
Section 2 Online Gambling Regulation Act 2001
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“associated” shall be construed in accordance with section 8(5) and (6) of the
Fair Trading Act 1996;
other expressions have the same meanings as in section 10 of the Electronic
Transactions Act 2000.
2 Restrictions on online gambling
(1) Subject to section 3, any person who conducts any online gambling,
otherwise than in accordance with a licence granted under section 4 to
that person or to a company of which he is a director or employee, is
guilty of an offence.
(2) Any person conducting online gambling who permits —
(a) a minor, or
(b) a person who at the material time is in a prescribed country or
territory,
to participate in the online gambling is guilty of an offence.
(3) It shall be a defence for any person charged with an offence under
subsection (2) to prove that the contravention occurred without his
consent or connivance and that he exercised all due diligence to prevent
it (and, in particular, that he took all such steps as may be prescribed for
the purpose of ensuring that such persons do not participate in online
gambling).
3 Exclusion of certain activities
(1) Subject to subsection (2), nothing in section 2(1) applies to —
(a) a transaction effected by a licensed bookmaker and authorised by
a betting office licence under Part II of the Gaming, Betting and
Lotteries Act 1988 (“the 1988 Act”) that consists of the negotiating
or receiving of any bet from a person in the Island by means of a
telecommunication;1
(b) any activity connected with the organisation, management or
promotion of a lottery declared not to be unlawful by —
(i) section 30, 31, 32, 34A, 35 or 36 of the 1988 Act, or
(ii) section 1 of the National Lottery Act 1999;
(c) the playing at a casino of a prescribed game (within the meaning
of the Casino Act 1986);
(d) a contract to which section 47 of the Financial Services Act 2008
applies;2
(e) a contract the effecting of which constitutes the carrying on of
insurance business within the meaning of the Insurance Act 2008;3
(f) any other activity prescribed for the purpose of this section.
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(2) Regulations may provide that, notwithstanding subsection (1),
section 2(1) shall apply to any activity or other matter mentioned in that
subsection unless it complies with such conditions as are prescribed.
(3) Regulations may amend paragraphs (a) to (e) of subsection (1).4
(4) A person who conducts online gambling by virtue of an exemption
under regulations made pursuant to subsection (1)(f) shall pay to the
Treasury such fee as may be prescribed in the regulations.5
(5) The Treasury may prescribe fees for different exemptions or classes of
exemption, different classes of gambling and different classes of
persons.6
(6) [Repealed]7
4 Licensing of online gambling
(1) The Isle of Man Gambling Supervision Commission (“the
Commissioners”) may grant to a person named therein, being a company
limited by shares and incorporated in the Island, a licence authorising it
to conduct online gambling —
(a) of any prescribed description, or
(b) of such prescribed descriptions as are specified in the licence.8
(2) The Commissioners shall not grant a licence to any company unless it is
satisfied —
(a) that the company is under the control of a person or persons of
integrity;
(b) as to the beneficial ownership of the share capital of the company;
(c) that the activities of the company are under the management of a
person or persons of integrity and competence; and
(d) that the company has adequate financial means available to
conduct online gambling of the descriptions in question.9
(3) Before granting a licence the Commissioners shall consult —
(a) the Treasury;
(b) the Department of Economic Development,10
(c) the Isle of Man Financial Services Authority,11
(d) the Chief Constable, and
(e) the Isle of Man Information Commissioner.12
13
(4) The Commissioners shall not be required to give reasons for refusing a
licence.14
(5) to (7) [Repealed]15
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5 Licence fees and duties
(1) An applicant for a licence shall pay to the Treasury on an application for
the grant of a licence such fee as is prescribed.
(2) The holder of a licence shall pay to the Treasury —
(a) on the grant of a licence, and
(b) on each anniversary of the grant of the licence, for as long as the
licence remains in force,
such annual fee as is prescribed.
(2A) The Treasury may prescribe different fees for different licences or classes
of licence, different classes of gambling and different classes of persons.16
(3) [Repealed]17
(4) and (5) [Repealed]18
(6) [Repealed]19
(7) Where a licence is surrendered under section 7(2), no refund of any fee or
duty under this section or any proportion of such a fee or duty shall be
allowed.20
(8) [Repealed]21
6 Conditions of licence
(1) The authorisation conferred by a licence shall be subject to such
conditions as are specified in the licence.
(2) The conditions of a licence shall include conditions requiring the holder
of the licence —
(a) to provide such security (real or personal or both), and to
maintain such deposits and reserves, as are specified in or
determined in accordance with the licence for the payment of
debts arising out of online gambling conducted by him;
(b) to notify the Commissioners forthwith if it realises or calls upon
any such security or draws on any such deposits or reserves
(including any new or substituted security, deposits or reserves
provided under paragraph (c)); and
(c) in the case mentioned in paragraph (b), to comply with any
directions of the Commissioners as to the provision of substituted
security, deposits or reserves.
(3) If a condition of a licence is contravened the holder of the licence is guilty
of an offence.
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7 Duration of licences
(1) Subject to section 8(2), a licence, unless it is cancelled or surrendered,
shall remain in force for such period, not exceeding 5 years, as may be
specified in it, beginning on such date as is so specified.
(2) The holder of a licence may surrender the licence by notice in writing to
the Commissioners.22
(3) The surrender or expiry of a licence shall not affect any liability for
anything done or omitted to be done before the date on which it ceases to
have effect.
8 Renewal of licences
(1) The holder of a licence may, not later than the date of its expiry, apply to
the Commissioners for the renewal of the licence.23
(2) Where an application is made under subsection (1), the licence shall
continue in force —
(a) until the determination of the application, or
(b) if the application is refused, until the expiration of 21 days from
the date on which notice of the refusal is given to the applicant or,
where an appeal is made under section 7 of the Gambling
(Amendment) Act 2006, until the appeal is abandoned or
determined.24
(3) Sections 4 to 7 (except section 4(4)) apply, with any necessary
modifications, to the renewal of a licence as they apply to the grant of a
licence.
9 Variation and transfer of licence
(1) The Commissioners may, on an application by the holder of a licence or
of its own motion, vary a licence by adding a prescribed description of
online gambling to, or deleting a description of online gambling from,
the descriptions specified in the licence.25
(2) Subject to section 6(2), the Commissioners may, on an application by the
holder of a licence or of its own motion, vary or cancel any condition
specified in the licence.26
(3) A variation of a licence, or of a condition of a licence, made otherwise
than on an application by the holder shall not have effect until the
expiration of 21 days from the date on which notice of it is given to the
applicant or, where an appeal is made under section 7 of the Gambling
(Amendment) Act 2006, until the appeal is abandoned or determined.27
(4) The Commissioners may, on an application by the holder of a licence,
transfer the licence to a person specified in the application.28
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(5) A transfer under subsection (4) shall be endorsed on the licence.
(6) Sections 4(2) to (4) applies, with any necessary modifications, to a
transfer of a licence as it applies to the grant of a licence.29
(7) Section 5(1) applies, with any necessary modifications, to an
application for —
(a) the variation of a licence, or of a condition of a licence, or
(b) a transfer of a licence,
as it applies to the grant of a licence.30
10 Designated official
(1) A licence, and a transfer of a licence, shall not come into force until at
least one designated official in relation to the licence has been approved
by the Commissioners.
(2) A designated official, in relation to a licence, is an individual nominated
by the holder or transferee, as the case may be, of the licence who is —
(a) a director of the holder or transferee of the licence.
(b) [Repealed]31
(3) The Commissioners shall not approve an individual as a designated
official unless they are satisfied that he is a person who satisfies the
integrity and competency requirements set by the Commissioners, and
shall withdraw such approval if they cease to be so satisfied.32
(3A) The Commissioners shall, after consulting the Treasury, issue written
guidance about the integrity and competency requirements set under
subsection (3).33
(4) If —
(a) the Commissioners withdraw their approval of a designated
official, or
(b) a designated official —
(i) dies; or
(ii) [Repealed]34
(iii) ceases to be a director of the holder of the licence,
and (in either case) there is no other designated official approved by the
Commissioners in relation to the licence, the holder of the licence shall
apply to the Commissioners for the approval of another person, being
such an individual as is mentioned in subsection (2), in his place.
(5) If —
(a) the holder of the licence fails to comply with subsection (4) within
the period of 6 weeks beginning with the event referred to in that
subsection, or
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(b) the Commissioners refuse an application under subsection (4)
without specifying a period within which a further application
may be made,
the licence is suspended from the end of the relevant period until another
designated official is approved by the Commissioners.
In this subsection “the relevant period” means the period of 6 weeks
referred to in paragraph (a), or any period specified as that within which
a further application may be made, as the case may be.
(6) The name and address of every designated official for the time being
approved under this section shall be endorsed on the licence.
(7) Where any provision of this Act or regulations —
(a) imposes any criminal or other liability on the holder of a licence,
or
(b) provides for any power to arise or anything to happen on the
conviction of the holder of a licence,
the reference to the holder includes a reference to any person who at the
material time is or was a designated official in relation to the licence.
10A Designated official outside the Island
(1) This section has effect where a designated official is not resident in the
Island.
(2) The holder of a licence shall appoint an operations manager who shall be
an individual who is resident in the Island and is approved or is of a
class of persons approved by the Commissioners for this purpose.
(3) A person shall be treated as approved for the purposes of subsection (2)
if that person is an employee of a body that is licensed under section 7 of
the Financial Services Act 2008 to carry on the regulated activity of
corporate services and that body is approved by the Commissioners for
the purposes of this section.35
(4) The operations manager shall, when required by notice in writing given
by the Commissioners, attend before the Commissioners or a person
nominated by them for the purpose.
(5) When requested under subsection (4), the operations manager shall
attend at such place and time as is specified in the notice but shall not be
required to attend within the five days following the service of the
notice.
(6) Without prejudice to section 41 of the Interpretation Act 1976, the service
of a notice under subsection (4) may be effected by email or facsimile
transmission.36
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(7) If the operations manager cannot for any reason comply with a
requirement under subsection (4), the designated official shall attend at
the place and time specified in the notice.
(8) The holder of a licence who fails to comply with subsection (2) shall be
guilty of an offence and liable on summary conviction to a fine not
exceeding £5,000.
(9) An operations manager or designated official who fails to comply with a
requirement by the Commissioners under subsection (4) shall be guilty
of an offence and liable on summary conviction to a fine not exceeding
£5,000.
(10) In proceedings against a person for an offence under subsection (8) or (9)
it shall be a defence for that person to show that all reasonable steps were
taken and all due diligence was exercised to avoid committing the
offence.37
Enforcement
11 Duties of Commissioners
(1) The Commissioners shall, subject to the provisions of this Act and of
regulations, —
(a) supervise the operation of any online gambling conducted in the
Island;
(b) investigate the character and financial status of any person
applying for or holding any licence or otherwise concerned with
the operation of any online gambling conducted in the Island; and
(c) ensure that all fees payable to the Treasury by a person
conducting online gambling in the Island are duly paid and
accounted for;
with a view to securing that online gambling is fairly and properly
conducted, and that the provisions of this Act and regulations, and the
conditions of any licences, are complied with.
(2) and (3)[Repealed]38
(4) The Treasury, the Isle of Man Financial Services Authority, the Isle of
Man Information Commissioner and the Chief Constable shall supply to
the Commissioners such information in their possession relating to
holders of and applicants for licences, and officers and servants of those
persons, as the Commissioners may reasonably require for the exercise of
their functions under this Act.39
(5) The Treasury, the Isle of Man Financial Services Authority, the Isle of
Man Information Commissioner and the Chief Constable may disclose
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information to the Commissioners for the purpose of assisting the
Commissioners in the performance of their functions under this Act.40
(6) The Commissioners may disclose information to the Treasury for the
purpose of assisting the Treasury in the performance of their functions in
relation to the collection of gambling duty payable in accordance with
the Gambling Duty Act 2012.41
(7) The duties imposed and powers conferred by subsections (4) to (6) may
be exercised despite any obligation not to disclose information which
would otherwise apply.
12 Obligations of holder of licence
(1) The holder of a licence shall —
(a) notify the Commissioners of any change in the beneficial
ownership of more than 5 per cent. of the share capital, or of any
class of share capital, in the holder;
(b) whenever required by the Commissioners, provide such
information as the Commissioners may require to satisfy them
that the holder of the licence continues to have adequate financial
means available to conduct the online gambling authorised by the
licence; and
(c) notify the Commissioners of any conviction of the holder of the
licence, or of any designated official in relation to the licence,
falling within section 13(3).
(2) No person shall be appointed to be a director of the holder of a licence
unless the Commissioners are satisfied that he is a person of integrity
and have approved his appointment.
(3) If subsection (1) or (2) is contravened the holder of a licence is guilty of
an offence.
13 Cancellation etc of licence
(1) The Commissioners shall cancel a licence where, after consultation with
the Treasury, they are satisfied that the holder of the licence would not
be eligible to be granted a licence on one or more of the grounds
specified in section 4(2).42
(2) In the circumstances specified in subsections (3), (4) or (5) the
Commissioners may by notice to the holder of a licence either —
(a) suspend the licence for such period as may be specified in the
notice, or until such conditions as are specified in the notice are
complied with; or
(b) cancel the licence.
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(3) The Commissioners may act under subsection (2) where the holder of the
licence, or any designated official in relation to the licence, is
convicted —
(a) by a court in the Island of any offence under the Casino Act 1986,
the 1988 Act or this Act;
(b) by any court in the British Islands or the Republic of Ireland of an
indictable offence; or
(c) by a court in any country or territory in the world of an offence
punishable (in that country or territory) in the case of an adult by
custody for an unlimited period or a term of 2 years or more.
(4) The Commissioners may also act under subsection (2) where they are
satisfied that the holder of the licence —
(a) has failed to pay any sum due under section 5;
(b) has failed without reasonable excuse to comply with any
condition of the licence;
(c) has contravened any provision of section 12 or of regulations;
(d) has failed without reasonable excuse to comply with a direction
under section 6(2)(c) or 15;
(e) has failed to comply with any requirement of a relevant code of
practice under section 157 (money laundering codes) of the
Proceeds of Crime Act 2008; or43
(f) has ceased to conduct online gambling of any description
authorised by the licence.
(5) The Commissioners may also act under subsection (2) where, in the
circumstances mentioned in section 12(1)(b), the holder of a licence has
failed to satisfy them that it continues to have adequate financial means
available to conduct the online gambling authorised by the licence.
(6) Where the Commissioners give a direction under section 6(2)(c) or 15
they may also make an order suspending the licence until the direction is
complied with.
(7) Where it appears to the Commissioners that any person has failed to
comply with a requirement under section 16 in relation to any online
gambling, they may also make an order suspending the licence
authorising the conduct of that gambling until the requirement is
complied with.
(8) An order under subsection (6) or (7) may be expressed to apply —
(a) with immediate effect, or
(b) with effect from the expiration of such period as is specified in the
order.
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14 Effect of cancellation etc of licence
(1) The cancellation or suspension of a licence does not affect any liability for
anything done or omitted to be done before the date on which the
cancellation or suspension takes effect.
(2) [Repealed]44
(3) Subject to subsections (1) and (2), where a licence is suspended under
any provision of this Act, the licence is of no effect until the
Commissioners by notice to the holder declare, or, where an appeal is
brought under section 7 of the Gambling (Amendment) Act 2006, the
Gambling Appeal Tribunal certifies, that the suspension has ceased.45
15 Control of management, advertising etc
(1) Where it appears to the Commissioners that —
(a) any director of the holder of a licence, or
(b) any other person who exercises managerial functions with respect
to the conduct of online gambling authorised by a licence,
is not a suitable person to act as a director of the holder of the licence, or
to exercise such functions, they may by notice to the holder direct that
the person be removed from his position as a director, or deprived of any
such managerial functions, as the case may be.
(2) Even though a direction under subsection (1) has been complied with, it
shall, unless it is withdrawn by a further notice to the holder of the
licence, remain in force as a direction —
(a) not to appoint the person to whom it relates as a director of the
holder, and
(b) not to allow him to exercise any managerial functions with respect
to the conduct of online gambling authorised by the licence.
(3) The Commissioners may give to the holder of a licence such directions as
to the information and other material which must, or must not, be
included in —
(a) any advertisement of online gambling;
(b) any communication to the public, or to a participant or intended
participant in online gambling,
as they consider appropriate for ensuring that online gambling is fairly
and properly conducted.
(4) The Commissioners may approve and issue codes of practice with
respect to the matters referred to in paragraphs (a) and (b) of
subsection (3), and directions under that subsection may be framed by
references to any such code of practice.
Section 16 Online Gambling Regulation Act 2001
Page 16 AT 10 of 2001 c
(5) Before approving and issuing a code of practice under this section the
Commissioners shall consult the Treasury.46
16 Rights of entry, inspection etc
(1) For the purpose of exercising any function of the Commissioners under
section 11 an authorised person may at any time —
(a) enter any premises which he has reasonable cause to believe are
or have been used for any purpose connected with the conduct of
online gambling;
(b) require any person to produce any documents or other records
relating to or connected with the conduct of online gambling, and
to take copies of such documents or records; and
(c) require any person to provide him with access to any computer
program used or to be used in connection with the conduct of
online gambling.
(2) An authorised person in exercise of the power conferred by
subsection (1)(b) or (c) —
(a) is entitled at any reasonable time to have access to, and inspect
and check the operation of, any computer and any associated
apparatus or material which is or has been in used in connection
with the records in question; and
(b) may require the person by whom or on whose behalf the
computer is or has been used, or any person having charge of or
otherwise concerned with the operation of the computer,
apparatus or material, to afford him such assistance as he may
reasonably require.
(3) An authorised person exercising a power conferred by subsection (1)
or (2) —
(a) shall, if asked to do so, produce some duly authenticated
document showing his authority to do so;
(b) when entering any premises, may take with him such other
persons and such equipment as may appear to him to be
necessary.
(4) Any person who —
(a) intentionally obstructs another in the exercise of any power
conferred by this section, or
(b) fails without reasonable excuse to comply with a requirement
under subsection (1)(b) or (c) or (2)(b), or
(c) refuses or neglects without reasonable excuse to provide any
information or to produce or provide any document or other item
when required to do so under this section; or
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(d) in purported compliance with any requirement imposed on him
under this section, provides, or causes or permits to be provided,
any information which he knows to be false or misleading in a
material particular or recklessly provides information which is
false or misleading in a material particular; or
(e) produces or provides, or causes or permits to be produced or
provided, any document or other item which he knows to be false
or misleading in a material particular or recklessly produces or
provides any document or other item which is false or misleading
in a material particular,
is guilty of an offence.
(5) If it is shown to the satisfaction of a justice of the peace on information on
oath that there are reasonable grounds for entry of any premises for the
purpose mentioned in subsection (1), the justice may by warrant under
his hand authorise an authorised person to enter and search the
premises, using force if need be.
(6) A warrant issued under subsection (5) shall continue in force for 7 days.
(7) Nothing in this section shall compel the production of any
communication which is subject to legal privilege.
(8) In this section “authorised person” means —
(a) a person authorised in writing by the Commissioners to exercise
any power conferred by this section;
(b) a constable.
(9) If a person who has entered on any premises under this section, or has
had access to any document, record or information produced or
provided pursuant to any requirement under this section, discloses to
another person information about any person or business thereby
obtained by him, then, unless the disclosure is made in the course of the
functions for the purposes of which he was authorised to enter the
premises or was given access to the document, record or information, he
is guilty of an offence.
17 Beneficial ownership
(1) The High Court may, on the application of the Commissioners, make an
order in respect of the company which is the holder of a licence
requiring —
(a) any member of the company holding a share in the company;
(b) any director, manager, secretary or other officer of the company;
or
(c) any person appearing to the Court to be interested in the share;
Section 18 Online Gambling Regulation Act 2001
Page 18 AT 10 of 2001 c
to disclose to the Commissioners the identity of the beneficial owner or
owners of the share.
(2) If it appears to the High Court that default has been made in complying
with an order under subsection (1) and that the identity of the beneficial
owner or owners of the share in question has not been disclosed to the
Commissioners, the Court may, on the application of the Commissioners,
make an order vesting that share in the Treasury.
(3) The High Court may, in proceedings under subsection (2), summon any
person to give evidence on oath as to any matter within his knowledge,
and to produce any document in his custody or control, bearing upon the
identity of the beneficial owner of the share in question.
(4) The High Court may, on the application of any interested person, revoke
an order under subsection (2), and thereupon the share in question shall
vest in the person in whom it would then have been vested apart from
that order; but the court shall not revoke such an order unless it is
satisfied that the identity of the person or persons who, on such
revocation, will be the beneficial owner or owners of the share in
question has been disclosed to the Commissioners.
(5) In this section “beneficial owner”, in relation to a share the beneficial
ownership of which is vested in a body corporate (other than a quoted
company), means an individual who, whether directly or indirectly,
through the holding of, or interests in, a share or shares in that or another
body corporate or other bodies corporate, is ultimately interested
beneficially in the share in question.
18 Offences
(1) A person convicted of an offence under this Act (except under
section 16(4)) is liable —
(a) on conviction on information, to custody for a term not exceeding
2 years or a fine, or both;
(b) on summary conviction, to custody for a term not exceeding 6
months or a fine not exceeding £5,000, or both.
(2) A person convicted of an offence under section 16(4) is liable on
summary conviction, to custody for a term not exceeding 6 months or a
fine not exceeding £5,000, or both.
(3) Proceedings for an offence under this Act or regulations shall not be
instituted except by or with the consent of the Attorney General.
(4) Where an offence under this Act or regulations committed by a body
corporate is proved to have been committed with the consent or
connivance of, or to have been attributable to any neglect on the part of,
any director, manager, secretary or other similar officer of the body
corporate or a person who was purporting to act in any such capacity, he
Online Gambling Regulation Act 2001 Section 19
c AT 10 of 2001 Page 19
as well as the body corporate is guilty of that offence and liable to be
proceeded against and punished accordingly.
(5) Where the affairs of a body corporate are managed by its members,
subsection (4) applies in relation to the acts and defaults of a member in
connection with his functions of management as if he were a director of
the body corporate.
(6) In relation to an offence under this Act, section 75(1) of the Summary
Jurisdiction Act 1989 (time-limit for summary proceedings) applies with
the substitution for “6 months” of “2 years”.
Miscellaneous and supplemental
19 [Repealed]
47
20 Licences not to be assigned
A licence shall not be capable of being assigned.
21 Regulations
(1) The Treasury may by regulations —
(a) prescribe anything which under this Act may be prescribed;48
(b) prescribe the principles and rules in accordance with which online
gambling of any description shall be conducted;
(c) require the rules of online gambling of any description (whether
or not prescribed under paragraph (b)) to be notified in a
prescribed manner to every participant in online gambling of that
description;
(d) prescribe the manner in which the duties of any person engaged,
appointed or seconded under section 11(2) are to be carried out,
and the facilities to be granted to him for the purpose;
(e) regulate the fees which may be charged for participating in online
gambling;
(f) require any individuals employed or engaged by or on behalf of
the holder of a licence in the Island in the conduct of online
gambling (except persons approved under section 10(1) or 12(2))
to be approved by the Commissioners;
(g) enable any participant by a notification to the holder of a licence
to limit the stakes which he may make, or on the losses which he
may incur, in any period in online gambling of any description;
(h) require a prescribed period to elapse between the notification and
the coming into effect of any increase in any limit on stakes or
Section 21 Online Gambling Regulation Act 2001
Page 20 AT 10 of 2001 c
losses previously notified by any participant in online gambling
of any description;
(i) regulate the advertising of online gambling;
(j) require stakes, winnings and losses to be paid by means of credit
accounts or in any other prescribed manner;
(k) require persons conducting online gambling to verify the identity
and age of participants in a prescribed manner;
(l) (without prejudice to any obligation under the Data Protection Act
2002) require prescribed steps to be taken to secure the privacy of
participants in online gambling.49
(1A) Regulations under subsection (1) may —
(a) make provision as to the treatment to be afforded to money
received by the holder of a licence;
(b) provide that money held by the holder is held on trust;
(c) specify the terms and purposes of any such trust; and
(d) exclude or modify the operation of section 6(2) in relation to
money held on trust in accordance with the regulations.50
(1B) Any institution with which an account is kept in accordance with
regulations made pursuant to subsection (1A) shall not incur any liability
as constructive trustee where money is wrongfully paid from the account
unless the institution —
(a) permits the payment with knowledge that it is wrongful; or
(b) has deliberately failed to make enquiries in circumstances in
which a reasonable and honest person would have done so.51
(2) The Treasury may by regulations prescribe the manner in which the
gross receipts of online gambling are to be accounted for, and the records
to be kept, for the purposes of section 5.52
(3) Where online gambling of any description prescribed for the purpose of
section 4(1) ceases to be so prescribed, it shall be treated as continuing to
be so prescribed in relation to any licence already in force (including any
such licence as from time to time renewed under section 8), but without
prejudice to any variation under section 9(1).
(4) Regulations may provide that a contravention of any provision of them
shall be an offence on the part of any person of a description specified in
the regulations, punishable on summary conviction by a penalty not
exceeding that so specified (which shall not exceed custody for a term of
6 months or a fine of £5,000, or both).
(5) Regulations shall be laid before Tynwald as soon as may be after they are
made; and if Tynwald, at the sitting at which they are laid or the next
following sitting, resolves that they be annulled, they shall cease to have
effect.
Online Gambling Regulation Act 2001 Section 22
c AT 10 of 2001 Page 21
22 Exemption from certain restrictions
(1) For the purpose of exempting online gambling from certain restrictions,
the enactments specified in the Schedule are amended in accordance
therewith.
(2) A lottery is not unlawful if —
(a) it is authorised by a licence, and
(b) it is conducted in accordance with the provisions of this Act and
the terms of the licence.
23 Online gambling contracts to be enforceable at law
No contract entered into in the course of online gambling shall be void or
unenforceable by reason of section 40 of the 1988 Act.
24 Notices
Any notice to be given to the holder of a licence for any purpose of this Act or
regulations, or of any provision of the licence, shall be deemed to be duly given
if it is sent by ordinary post or delivered to —
(a) such address in the Island of the holder as is specified for the
purpose in the licence, or
(b) such other address in the Island as the holder may from time to
time notify for the purpose to the Commissioners.
25 Interpretation: general
In this Act —
“the 1988 Act
” means the Gaming, Betting and Lotteries Act 1988;
“bet
” does not include any bet made or stake hazarded in the course of, or
incidentally to, a game of chance;
“the Commissioners
” means the Isle of Man Gambling Supervision
Commission;53
“conduct
”, in relation to online gambling, has the meaning given by
section 1(2);
“the Department
” [Repealed]54
“designated official
” has the meaning given by section 10(2);
“game
” includes a game played by one person by means of a computer or other
device, even though no other person participates in the game;
“game of chance
” does not include any athletic game or sport but, with that
exception, includes a game of chance and skill combined and a
pretended game of chance or of chance and skill combined;
Section 26 Online Gambling Regulation Act 2001
Page 22 AT 10 of 2001 c
“gaming
” means the playing of a game of chance for winnings in money or
money’s worth, whether or not any person playing the game is at risk of
losing any money or money’s worth;
“licence
” means a licence granted under section 4 or renewed under section 8;
“notice
” means a notice in writing;
“online gambling
” has the meaning given by section 1(1);
“prescribed
” means prescribed by regulations;55
“regulations
” means regulations made by the Treasury under this Act;56
“telecommunication
” means a communication sent, transmitted or received by
means of a telecommunication system;
“telecommunication system
” has the same meaning as in the
Telecommunications Act 1984, but does not include a system the running
of which falls or (if it were in the Island) would fall within section 4
(exemptions from licensing) of that Act.
26 Short title
This Act may be cited as the Online Gambling Regulation Act 2001.
Online Gambling Regulation Act 2001 Schedule
c AT 10 of 2001 Page 23
SCHEDULE
AMENDMENT OF ENACTMENTS
Section 22(1)
[Sch amends the folowing Acts —
Pool Betting (Isle of Man) Act 1961 q.v.
Casino Act 1986 q.v.
Gaming, Betting and Lotteries Act 1988 q.v.]
Online Gambling Regulation Act 2001 Endnotes
c AT 10 of 2001 Page 25
ENDNOTES
Table of Legislation History
Legislation Year and No Commencement
Table of Renumbered Provisions
Original Current
Table of Endnote References
1
Para (a) substituted by Gambling (Amendment) Act 2006 Sch 2. 2
Para (d) amended by Financial Services Act 2008 Sch 6 para 44 and see also Official
Correction to Act issued by authority of HM Attorney General 28 October 2011 for
“section 46” substitute “section 47”. 3
Para (e) amended by Insurance Act 2008 Sch 8. 4
Subs (3) added by Gambling (Amendment) Act 2006 Sch 2. 5
Subs (4) added by Gambling (Amendment) Act 2006 Sch 2. 6
Subs (5) added by Gambling (Amendment) Act 2006 Sch 2. 7
Subs (6) repealed by Gambling Duty Act 2012 Sch 2. 8
Subs (1) amended by Gambling (Amendment) Act 2006 Sch 2. 9
Subs (2) amended by Gambling (Amendment) Act 2006 Sch 2. 10
Para (b) amended by Gambling (Amendment) Act 2006 Sch 2 and by SD155/10 Sch 2. 11
Para (c) amended by SD2015/0090 as amended by SD2015/0276. 12
Para (e) amended by Data Protection Act 2002 Sch 12 and by Freedom of Information
Act 2015 Sch 4. 13
Subs (3) amended by Gambling (Amendment) Act 2006 Sch 2. 14
Subs (4) amended by Gambling (Amendment) Act 2006 Sch 2. 15
Subss (5) to (7) repealed by Gambling (Amendment) Act 2006 Sch 2. 16
Subs (2A) inserted by Gambling (Amendment) Act 2006 Sch 2. 17
Subs (3) repealed by Gambling Duty Act 2012 Sch 2. 18
Subss (4) and (5) repealed by Gambling (Amendment) Act 2006 Sch 2. 19
Subs (6) repealed by Gambling Duty Act 2012 Sch 2. 20
Subs (7) substituted by Gambling (Amendment) Act 2006 Sch 2.
Endnotes Online Gambling Regulation Act 2001
Page 26 AT 10 of 2001 c
21
Subs (8) repealed by Gambling (Amendment) Act 2006 Sch 2. 22
Subs (2) amended by Gambling (Amendment) Act 2006 Sch 2. 23
Subs (1) amended by Gambling (Amendment) Act 2006 Sch 2. 24
Para (b) amended by Gambling Supervision Act 2010 Sch 4. 25
Subs (1) amended by Gambling (Amendment) Act 2006 Sch 2. 26
Subs (2) amended by Gambling (Amendment) Act 2006 Sch 2. 27
Subs (3) amended by Gambling Supervision Act 2010 Sch 4. 28
Subs (4) amended by Gambling (Amendment) Act 2006 Sch 2. 29
Subs (6) amended by Gambling (Amendment) Act 2006 Sch 2. 30
Subs (7) amended by Gambling (Amendment) Act 2006 Sch 2. 31
Para (b) repealed by Gambling (Amendment) Act 2006 Sch 2. 32
Subs (3) amended by Gambling (Amendment) Act 2006 Sch 2. 33
Subs (3A) inserted by Gambling (Amendment) Act 2006 Sch 2. 34
Subpara (ii) repealed by Gambling (Amendment)Act 2006 Sch 2. 35
Subs (3) amended by Financial Services Act 2008 Sch 6. 36
Printed as section 40 in the original Act text. 37
S 10A inserted by Gambling (Amendment) Act 2006 Sch 2. 38
Subss (2) and (3) repealed by Gambling (Amendment) Act 2006 Sch 2. 39
Subs (4) amended by Gambling (Amendment) Act 2006 Sch 2, by Freedom of
Information Act 2015 Sch 4 and by SD2015/0090 as amended by SD2015/0276. 40
Subs (5) amended by Gambling (Amendment) Act 2006 Sch 2, by Freedom of
Information Act 2015 Sch 4 and by SD2015/0090 as amended by SD2015/0276. 41
Subs (6) amended by Gambling (Amendment) Act 2006 Sch 2 and by Gambling Duty
Act 2012 Sch 1. 42
Subs (1) amended by Gambling Supervision Act 2010 Sch 4. 43
Para (e) amended by Proceeds of Crime Act 2008 Sch 7. 44
Subs (2) repealed by Gambling Duty Act 2012 Sch 2. 45
Subs (3) amended by Gambling Supervision Act 2010 Sch 4. 46
Subs (5) added by Gambling (Amendment) Act 2006 Sch 2. 47
S 19 repealed by Gambling Supervision Act 2010 Sch 5. 48
Para (a) amended by Gambling (Amendment) Act 2006 Sch 2. 49
Subs (1) amended by SD564/08. Para (l) amended by Data Protection Act 2002 Sch 12. 50
Subs (1A) inserted by Gambling Supervision Act 2010 s 10. 51
Subs (1B) inserted by Gambling Supervision Act 2010 s 10. 52
Subs (2) amended by Gambling (Amendment) Act 2006 Sch 2. 53
Definition of “the Commissioners” substituted by Gambling (Amendment) Act 2006
Sch 2. 54
Definition of “the Department” repealed by Gambling Supervision Act 2010 Sch 5. 55
Definition of “prescribed” amended by Gambling (Amendment) Act 2006 Sch 2. 56
Definition of “regulations” substituted by Gambling (Amendment) Act 2006 Sch 2.
