By Tatiana Martins, journalist at G&M News.
The 2025 Gibraltar Gambling Act is now in force. Looking back at its implementation so far, what have been the most significant changes for operators and other gambling businesses? Are the new rules achieving the regulatory objectives behind the reform?
In terms of our existing licensees, who were “grandfathered” into the new regime, this has gone relatively smoothly (thanks to my licensing colleagues), but it has provided the opportunity to refresh licenses and consider if there is additional licensable activity falling in within scope; particularly as managing and controlling a gambling business from Gibraltar (wherever the business is located) falls within scope. This is still a significant workstream. One of the aims of the Act was to fashion a more defined B2B licensing regime and we are seeing an uplift in B2B licenses for platforms and software suppliers. Also, the exercise to license marketing cos is in full swing and we are now receiving digital applications as part of that process. Naturally, the sector is getting used to a new regime and there has been a significant uplift in sectoral engagement, both at operator, applicant and trade association level. The black letter law is one thing, but we have also focused on pragmatic implementation so as to make transition as painless for all as possible. We delayed personal licensing (likely commencement now April 2027, with a prior application window) because the existing team (with no uplift in resources) is dealing with a significant number of additional workstreams, including drafting new codes and guidance as well as liaising with the Government Legal Office on regulations. I have been previously quoted as saying that “you can’t eat a whole elephant in one sitting.” Overall, things are moving in the right direction, and the transition has been a real opportunity to engage and understand the sector whilst ensuring that the new framework brings into scope a wider cohort of the supply chain. We are also seeing sustained interest in the jurisdiction from UK facing B2Cs who want to migrate from the UK. The new Act also provides good framework for the approval of a change of control in an industry that is seeing more consolidation.
The new Act significantly expands the scope of gambling regulation, including certain B2B activities, regulated individuals and gambling-related services. How is this broader scope affecting companies that were previously outside Gibraltar’s licensing framework?
As indicated above, this is the area that is driving more industry engagement than anything else. What we have not seen is business exiting the supply chain because of the new regime. Gibraltar remains an attractive jurisdiction for the B2B supply chain and as a jurisdiction from which to do B2B business. We have generally seen that externally based B2Bs have been willing to go through the licensing process. We have spectrum of proportionate fees for software suppliers who want to do direct integration or there is an aggregation route. We considered and rejected the Malta style “recognition notice” regime, but that word again, we have been pragmatic in our approach. I’ve lost count of the number of meetings I have had with prospective B2B applicants. I think that the major difference with some other jurisdictions is that we have been accessible to the industry.
With the transition to the new regulatory framework underway, what are the main compliance challenges you are seeing among existing licensees and businesses applying for authorization under the new regime?
There is new legislation, but in many ways, it reflects the way we have been regulating for some time (admittedly stretching the boundaries of an Act that had sustained for 20 years). The main challenge for the industry is understanding the content and structure of the new Act, recognizing the new fees framework, but most importantly engaging with the regulatory sub structure of codes/guidance. We already have a new social responsibility code for consultation and an updated AML code. We are currently working on a new technical standards document. However, this is being implemented in collaborative and transparent way. We are not here to catch people out, rather ease them into compliance.
Gibraltar has traditionally been regarded as a competitive and well-established gambling jurisdiction. With operators facing increasing regulatory and tax pressures across Europe, how important is the 2025 Act in maintaining Gibraltar’s international position?
Gibraltar remains an operational center, but we are also creating the conditions to build resilience and to allow businesses to use Gibraltar as a multi-jurisdictional service center. There has been some well documented political concern about the impact that UK tax hikes may have in Gibraltar in terms of Government tax receipts. However, at the time of writing, there appears to be a fair degree of resilience; albeit the industry needs to be “leaner and meaner.” The new Act is facilitating a good deal of interest in the jurisdiction and the landscape feels vibrant. It will not be the Act or the regulatory regime that undermines the position of Gibraltar as a tier 1 Gambling hub. Also, the fact that there is free movement of people at the border with Spain assists to create confidence in the jurisdiction.
How do you expect Gibraltar’s regulatory framework to evolve in response to emerging areas such as prediction markets, free-to-play and hybrid models, and other technology-driven developments in gambling?
The Act is flexible in that it allows the Minister to make regulations to determine what does or does not fall within the scope of the Act. Witness the arrival of the Prediction Market regulations which exempt PMs from being gambling, but establish a market integrity, social responsibility and AML regime for PMs. The “perimeter” and gambling derivatives are always in mind and even now we may have to tidy up some of the definitional drafting in the Act around prize gaming and lotteries to ensure consistency and to prevent loopholes. So, yes, evolution is for definite. My view is that the cycle of transition will not be complete until early in 2028. The implementation of the Act, the regulatory substructure and the ongoing digitalization project is a multi faceted major change management project. The level of Gambling Division work has increased substantially, and I cannot praise my colleagues highly enough for upping their game on this. Also, my thanks to the industry for the continued level of engagement.