The team at SolutionsHub are world leaders in licensing and regulation, specialising in blockchain-based technology and the gambling sector. The team, based in Douglas, have guided several businesses through the licensing process to become fully regulated in the Isle Of Man – one of the strictest jurisdictions available. With an increasing involvement in cryptocurrency in igaming, SolutionsHub COO Nick Wright offers insight into the process of obtaining a blockchain gambling licence
What are some of the projects have you worked with so far?
It takes from 10 to 12 weeks to actually get the licence but preparation time really does depend on the urgency from the customer. The longer we have to prepare, the more complete the application that gets submitted to the regulator but we always to submit the best possible application.
We try to put ourselves in the Inspectorate’s shoes and cover off the questions that they would likely need to ask. As a former Inspector, we have a unique insight into what the Inspectors are generally looking to see in an application.
When applying for a gambling licence, what are the main differences when blockchain is involved?
Then main differences surround the use of the operator’s native token, what it can be used for and why is being used.
Also the player protection mechanisms need to be given some serious thought, as it’s not as simple as opening a fiat bank account and segregating player funds that way.
The testing of the operator’s platform and smart contracts is also a key requirement so as to ensure that it meets with the regulators regulations and that the smart contract actually does what it claims it will do.
Some projects are “blockchain-based”, while some make use of blockchain / crypto. What are the differences when it comes to licensing?
Presentation of the licensing model is essential when applying for a crypto/blockchain-based licence. We want the model to be as clear as possible for the Inspectorate so as to ensure a smoother passage through the licensing process.
With a decentralised blockchain, it’s going to be a slightly different application in so much as only certain elements of the platform can be hosted on Isle Of Man servers – due to the decentralised nature of the blockchain. Independent testing will also need to be tailored accordingly.
Some of the clients we work with have their own private blockchain to assist with the number of transactions per second that the platform can process.
Clients with native tokens also interact with decentralised blockchains so transactions are recorded in the public ledger – again, it’s all about understanding the model that the clients want to use and how it can be tweaked to ensure if fits with the legislative requirements.
What makes the Isle of Man attractive to blockchain-based businesses?
Here in the Isle of Man we have an extremely approachable regulator and they are open to new ideas and previously unseen business models.
Their open minded and forward thinking approach does mean to can pick up the phone or meet with them to discuss new licence applications and they will always try to help where possible.
The Isle of Man Department of Enterprise, Digital Isle of Man and Blockchain Isle of Man are also proactive in trying to attract new business to the Island and can offer attractive grants towards setup and ongoing costs.
Why does gambling and blockchain go together so well?
Blockchain and gambling is an excellent use case for blockchain technology. The blockchain is a transparent record of transactions which cannot be altered due to the distributed nature of its architecture.
New blockchains are developing with some of them making improvements in both speed and efficiency resulting in faster confirmation times.
What do you think the future holds for blockchain and gambling?
We are already seeing a swing in licence applications moving from a vanilla fiat model to blockchain and crypto related models. We only see this trend increasing as we go forward.
Contact SolutionsHub to find out how we can help your business, book a consultation now