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The Isle of Man is entering a new era of regulatory enforcement, with recent actions and legislative reforms from the Gambling Supervision Commission (GSC) focusing on money laundering risks in the gambling sector. Driven by rising concerns over the exploitation of global online gambling hubs by transnational crime groups, particularly out of East and Southeast Asia, the island is tightening its financial crime defences and regulatory scrutiny.
The Bigger Picture
The GSC launched a comprehensive public consultation in July 2025 on draft reforms to its foundational legislation, including the and the (AML Act).
These proposed changes focus on harmonising the GSC’s regulatory powers, strengthening entry controls and enhancing inspection and investigation powers. The reforms are intended to bring consistency and sharper oversight to a sector facing complex cross-border risk.
A notable example of the GSC’s more assertive approach is the £3.94m civil penalty issued to Celton Manx Ltd. on July 4, 2025, for systematic anti-money laundering (AML) failings. The company had surrendered its licence in May 2025 and was found to have breached several obligations under the .
Deficiencies included a lack of oversight of network partners, an absence of customer monitoring processes, failure to apply enhanced due diligence for high-risk customers and inadequate procedural frameworks. Both the money laundering reporting officer (MLRO) and compliance officer were also found to lack the expertise necessary for their roles, a key governance red flag.
The GSC has stated that it is satisfied that the implementation of the civil penalty on Celton Manx reflects the serious nature of the identified non-compliance and the issues and risks identified. It was further noted that Celton Manx acknowledged the serious shortcomings in its operational and governance arrangements at an early stage of the commission’s investigation and had entered into settlement discussions with the commission and sought to resolve matters expeditiously.
The GSC stated that Celton Manx’s cooperation during the investigation was a mitigating factor in determining the penalty, indicating the fine could have been higher without it. These moves form part of a broader alignment with Financial Action Task Force (FATF) Standards, including the publication of the Isle of Man’s first standalone Terrorist Financing National Risk Assessment on July 22, 2025. The report identified transit-related terrorist financing risks and signalled more detailed data ahead of the Isle of Man’s MONEYVAL review in October 2026.
That same day, the GSC issued an indefinite prohibition against Mr. Phua Cheng Wan, the former owner of Boldwood Software, citing integrity concerns and alleged links to criminal actors, underscoring the regulator’s willingness to act preemptively where reputational risk arises.
Geographic Focus:
The regulatory spotlight on East and Southeast Asia reflects the Isle of Man’s national risk assessments, alongside wider global enforcement developments. FATF has designated several jurisdictions in the region as high risk for money laundering and terrorist financing. At the same time, regional crackdowns, most notably the termination of Philippine Offshore Gaming Operator (POGO) licences amid concerns over criminal exploitation, have intensified scrutiny. In addition, ongoing Isle of Man investigations have revealed links between gambling operators and organised crime networks based in Cambodia and mainland China. Digital IoM’s push for new business in the Philippines followed a year of controversy surrounding two companies deregistered by the GSC after police raids on their premises and the arrest of at least ten suspects, reportedly all Chinese nationals. That initiative, which was seen as targeting soon-to-be ex-POGO licensees, appears to have stalled in the face of heightened enforcement and reputational risk concerns. Against this backdrop, the GSC is signalling it will apply heightened due diligence to operators connected to these markets, addressing documented cross-border financial crime risks.
Why should you care?
For gambling operators licensed in the Isle of Man or seeking to enter the market, these developments have immediate and far-reaching implications:
Stricter licensing conditions: Operators with links to high-risk jurisdictions, especially in Southeast Asia, can expect heightened due diligence and entry barriers. Applications are now being assessed against national risk factors and structural red flags identified in recent risk assessments.
More intrusive supervision: Routine inspections are likely to become more detailed and frequent, particularly focusing on AML frameworks, governance and the oversight of affiliates or network partners.
Tighter AML governance scrutiny: Operators must ensure that their AML procedures are not only documented but also effectively implemented and auditable. Expect a strong focus on enhanced due diligence, transaction monitoring and internal reporting mechanisms.
While compliance expectations will rise, these reforms also carry potential benefits for market entrants and existing operators:
A more robust regulatory framework can enhance the Isle of Man’s credibility as a well-governed, low-risk online gambling hub.
Alignment with FATF Standards may help attract reputable banking partners, payment providers and affiliates who prefer operating in secure jurisdictions.
Well-prepared operators could experience smoother licensing processes and gain a competitive edge over rivals who struggle to meet the new bar.
Next Steps
To navigate this tightening regulatory environment, gambling operators should prioritise immediate internal reviews and adjustments:
Conduct internal AML audits to assess the robustness of current controls and identify gaps in compliance frameworks.
Upgrade staffing where needed, particularly ensuring that the MLRO and compliance teams possess the requisite expertise, experience and authority.
Strengthen third-party oversight by reviewing onboarding processes, performance monitoring and accountability measures for affiliates and network partners.
Implement proactive reporting protocols to detect and respond to suspicious activity swiftly, while also evidencing a compliance-first approach during inspections.
Looking Ahead
The legislative consultation launched in July 2025 is expected to conclude by the end of the year, likely paving the way for sweeping reforms in early 2026. These changes will modernise outdated statutory frameworks, harmonise regulatory powers, and embed clearer governance and competence standards.
The upcoming MONEYVAL mutual evaluation in October 2026 adds further momentum. As the Isle of Man seeks to demonstrate progress in enforcement and supervision, operators can expect more detailed guidance from the GSC, creating greater regulatory clarity for those ready to comply.
Staying ahead of these developments means not only reacting to individual enforcement cases but also building a resilient and scalable compliance infrastructure. Firms should invest now in training, systems and internal controls that will meet elevated expectations likely to follow local reform and international assessments.
