>>> where the random number is _used_
This was my main concern, and it was exactly what I needed a lawyer to sign off on before I set up a rig there. I was told that the gambling laws applied to where the chance took place, not where the money is distributed... after all, the whole thing with the IoM and the reason it's allowed to be a tax haven is that lots of people need to move money around without a lot of questions. But they defined gambling in this specific way and if only the money moved but the dice roll didn't take place on their shores, then it wasn't gambling under their jurisdiction. What you bring up was the conversation I had before locating there.
HN has a silly but effective piece of anti-flamewar UX which is that it hides the reply link in certain cases (some function of thread depth + amount of comments by you i think). However you can still reply by opening the comment on question (click on the timestamp, ie the "1 hour ago" link). Maybe you hit that.
"where the random chance takes place" could easily be interpreted as where the random number is _used_ and not where it has been created. Creating random numbers is not "chance" per se (in this context). Using random numbers to e.g. determining a winner would be the chance in my opinion.
What a story.
It added a nice little feature too, which was that every spin and deck could be stored on a separate server that would show them all at the end of the day. This was a little before "proven randomness" took off in btc casinos, but I made the RNG reports available daily for analysis (without explaining the whole infrastructure, obviously).
[edit] I just want to say that yes, you're obviously right, and yeah, I ran a casino from the IoM... without anyone knowing if that was okay or not... and it was just a moment in my life. of which I'm proud, I guess. I was living illegally in a small apartment in Alhama de Granada after violating my EU visa. hah. It was a great, great piece of software and I don't know if I'll ever write anything that good again. But it didn't really change my life or anything.