TLDR
- The Isle of Man wants to fine individual gambling executives, not just companies, for compliance failures
- The proposed Gambling Legislation (Amendment) Bill 2025 targets directors, compliance officers, and key personnel
- Penalties would apply when breaches occur through consent, connivance, or negligence
- The move follows a £200,000 fine issued to Shelgeyr, owner of Maverick Games, for due diligence failures
- Public consultation on the proposals is open until May 25, 2026
The Isle of Man is considering a major change to how it regulates its gambling industry. The island’s Gambling Supervision Commission wants the power to fine individual executives, not just the companies they work for.
Under the current system, only licensed business entities can be penalized when compliance rules are broken. The proposed Gambling Legislation (Amendment) Bill 2025 would change that by allowing regulators to impose civil financial penalties directly on people.
The targets would include directors, compliance officials, and other key personnel. These are the individuals who make day-to-day decisions about how anti-money laundering and know-your-customer rules are followed.
Penalties would apply when a compliance breach happens through a person’s consent, connivance, or negligence. The commission launched a public consultation to gather feedback on the draft measures.
Recent Enforcement Action Highlights Compliance Gaps
The proposal comes after a string of enforcement concerns on the island. Last month, the commission issued a £200,000 fine to Shelgeyr, the company behind Maverick Games.
Investigators found multiple failures in how the company handled customer due diligence. There were also problems with enhanced due diligence procedures and ongoing account monitoring.
Officials said the issues at Shelgeyr were systemic, not the result of isolated mistakes. The case underlined the limits of only being able to penalize companies rather than the people running them.
The commission said it needed better tools to hold individuals accountable. The current framework left gaps that the proposed legislation aims to close.
The Isle of Man currently rates its money laundering risk level as “medium high.” That rating has not changed since the island’s 2020 risk evaluation.
Authorities have pointed to specific vulnerabilities within the gambling sector. These ongoing concerns pushed the commission to look for stronger supervisory tools.
How Individual Penalties Would Work
To support the proposed law, the commission has drafted new guidance documents. These explain how regulators would assess individual responsibility when a breach occurs.
The guidance also outlines how the commission would calculate the size of personal financial penalties. The regulator said the new system would work alongside existing company-level penalties, not replace them.
The goal is to create a layered approach where both companies and individuals face consequences for compliance failures. This mirrors trends seen in other regulated industries where personal accountability has become a priority.
The commission stressed that the proposals are still in draft form. No changes will take effect without a full review of public feedback.
Industry specialists and other stakeholders have until May 25 to submit their comments. The commission also plans to hold a short online question-and-answer session to address concerns.
After the consultation closes, the commission will review all responses before deciding on the final version of the legislation. The online workshop will give participants a chance to ask direct questions about how personal penalties would work in practice.
