Changes are on the horizon for one of Europe’s largest gaming hubs after Gibraltar’s parliament passed the first reading of the 2025 Gaming Bill.
The new legislation seeks to replace the 2005 Gambling Act and spearhead a new era for the jurisdiction amid the significant challenges posed by the UK’s decision to hike remote gaming taxes.
iGaming Expert breaks down everything you need to know about the changes.
Years in the making
Legislative change for the jurisdiction has been in the works for many years, and consultations on a new bill began as far back as 2016.
Nigel Feetham MP, Minister for Justice, Trade and Industry, told parliament that the proposed legislation is ‘one of the most carefully and expertly considered and consulted upon bills’ in Gibraltar’s legislative history.
However, progress was repeatedly delayed, first by Brexit in 2016, which saw the eventual migration of EU gambling business away from Gibraltar and then Gibraltar’s push to gain removal from the Financial Action Task Force’s (FATF) grey list – which it eventually achieved in February 2024.
The bill was also forced to react to the changes in the gaming industry caused by the COVID-19 pandemic.
Roy Clinton MP, Shadow Minister for Finance & Value for Money, acknowledged that the bill has been shaped by a ‘detailed consultative process’.
Shifting focus of regulation
In his address to parliament, Feetham set out the need for a ‘more flexible regulatory regime’ that can meet the demands of an ever-changing environment.
In particular, he said that legislation will move away from where technology is located and towards where the management and control of a gambling operation is actually carried out.
Feetham said: “We have seen the development of cloud IT infrastructure providers, a shift towards gambling companies adopting a multi-jurisdictional approach and many more jurisdictions moving away from a restricted or monopoly model to one where local licenses have been offered to commercial gambling companies on an open market and nondiscriminatory basis.
“An act is needed that brings into scope any business where substantive management or control of that operation in or from within Gibraltar is present, rather than an over-reliance on the location of technology.”
Bringing marketing under the microscope
In an effort to gain greater control over the peripheral services that aid the function of the gambling industry, the new act sets out the requirement for certain outsourced B2B services, such as marketing and player fund management, to apply for a Gaming Operator Support Services (GOSS) Licence.
Feetham highlighted the growing plethora of companies involved in the B2B supply chain that compete for business across multiple jurisdictions.
He also raised concerns that some of the marketing activity taking place by companies doesn’t sit within ‘the scope of regulation’.
“The marketing of gambling services has developed, not least in the area of social media promotion, he said.
“Player acquisition and retention are the lifeblood of the industry, but marketing gambling products and customer relationship management is controversial and has the capacity, if unchecked and unregulated, to damage the reputation of the industry and the wider regulatory regime.”
More power to the commission
The bill also strengthens the regulatory control of the Gibraltar Gambling Commission, gifting new powers to deploy risk-based enforcement strategies, conduct investigations and issue financial penalties to non-compliant businesses.
“One of the practical weaknesses of the current act is that it only allows for the nuclear option of license suspension or revocation for breaches,” explained Feetham.
“Whereas the new bill sets out a range of proportionate sanctions and allows the gambling commissioner to deploy a more structured and statutory approach to regulatory investigations and inquiries.”
In recognition of the strengthened enforcement options, the bill also establishes a gambling appeals tribunal.
Flexibility in legislation
Feetham repeatedly referenced the ever-changing nature of the industry and the need for the new regulatory framework to reflect this situation while providing a solid set of regulatory objectives.
He said that the bill ‘allows for future proofing’ as the pace of technological innovation heightens, and work has already begun on a digitalisation project to improve the effectiveness of communication with the industry.
Feetham concluded: “The new act will not change the business supportive culture of Gibraltar. If you are prepared to be a good corporate citizen, paying your taxes, protecting consumers, and guarding against the facilitation of financial crime, then there is a welcome for you in our jurisdiction. We are open for business and will continue to be innovative.”
