The Isle of Man Gambling Supervision Commission (GSC) has announced a forecast revenue shortfall of £778,000 in the 2025-26 financial year due to fewer than expected active gambling licences.

The funding gap was revealed in a list of departmental revenue applications published on the government website as part of the 2025 Budget process, and was also confirmed by the Isle of Man Today.

The GSC’s funding model is based on licence fees and revenue from new business applications. The regulator expects to carry over 109 licences into the new financial year, down from the 148 previously forecast by the Treasury.

There are currently 84 online gambling licence holders on the GSC register, as well as three bookmakers, five gaming providers and one casino licence holder.

The Commission cited several factors contributing to the shortfall, including the failure to meet its targets for new licence applications. In 2022-23, GSC had forecast 39 new applications but received only 22, ending the year with 89 licences instead of the expected 102.

The trend continued in 2023-24, with just 26 new applications processed, compared to the same target of 39, resulting in 99 active licences against the forecast 127.

For the upcoming financial year, GSC has revised its new licence target downwards from 39 to 27.

In addition to attracting fewer licence applicants, GSC has seen an increased attrition rate among existing licence holders.

The annual budget assumed a 15% licence attrition rate, but the actual rate has increased from 8% in 2022-23 to 10% in 2024-25. to 17% in 2023-24. Over the past 12 months, the Commission has suspended or cancelled 25 licences, while approving 18 new ones.

However, despite the financial challenges, GSC continues to prioritise organisational stability and regulatory improvements. The Commission recently announced the appointment of Nicola Libreri as its new Deputy Director General.

Libreri has been with GSC since 2018, having previously overseen the Commission’s newly created Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Division, where she led examinations, enforcement, policy and public affairs functions. Under Libreri’s leadership, GSC has invested significantly in strengthening its AML/CFT capabilities.

This investment includes extensive training programmes and the creation of dedicated teams dedicated to improving compliance across the sector.

The teams focus on community outreach and remediation efforts, and apply proportionate sanctions where necessary to ensure the sector remains compliant.

Libreri brings a wealth of academic and professional experience to her new role. She holds an International Compliance Association (ICA) Diploma in Anti-Money Laundering/Counter-Terrorist Financing and a further ICA Diploma in Governance, Risk and Compliance. She is also trained in blockchain analysis, a skill that is becoming increasingly relevant to digital and cryptocurrency gambling regulation.

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