Annexio, the parent company of online gambling brand LottoGo, recently announced that it will voluntarily relinquish its B2C gambling license held in the Isle of Man. This decision is seen as a strategic response to changes in the global compliance environment, highlighting the challenges posed by stricter regulatory policies and rising operational costs for small and medium-sized operators.
Based in Douglas, Isle of Man, Annexio stated that after a comprehensive assessment of its business model, it found the compliance requirements across jurisdictions increasingly complex, coupled with rising customer acquisition costs, making it no longer suitable to maintain the current license structure. Despite this, the company emphasized its continued commitment to business development and compliance cooperation in the Isle of Man.
The backdrop to this exit is the Isle of Man's recent publication of its first Terrorism Financing National Risk Assessment (TFNRA) report. The report has raised the risk level of the online gambling industry from "low" to "medium," on par with the banking sector, indicating that the industry is facing heightened scrutiny in the anti-terrorism financing system. Jane Poole-Wilson, Minister for Justice and Home Affairs of the Isle of Man, pointed out that combating organized transnational crime is a global responsibility, and the island will actively participate in this fight.
The regulatory upgrade and risk reassessment are driving several operators, including Annexio, to rethink their operational structures and licensing layouts, which also indicates that the regulatory environment for the gambling industry will continue to tighten in the medium to long term.
