I don’t think it’d hold up in court. This is the same as saying: “I bet you ten bucks when I mail my friend in Switzerland, he will mail back a ten.” The random part is being done in another country, but the betting is still being done wherever you and your friend are.
Isn't it like betting on games happening in a different country? I'm pretty sure that is still gambling, even if entropy is generated in a different place.
Maybe the laws are written that way in IoM just so you don’t have to be registered to bet on Kentucky horse races or sports or whatever? Could be that way on purpose. Interesting loop-hole.
Does it really matter if you get your random number from /dev/urandom or a server in Switzerland?