‘We are open for business’ – all you need to know about Gibraltar’s Gambling Bill

(AsiaGameHub) –   One of Europe’s biggest gaming hubs is set to see changes now that Gibraltar’s parliament has approved the first reading of the 2025 Gaming Bill.

The new law aims to replace the 2005 Gambling Act and usher in a new chapter for the island, especially as it faces major challenges from the UK’s increase in remote gaming taxes.

iGaming Expert explains all the key details about these changes.

Years in the making

Plans to update the jurisdiction’s laws have been ongoing for years, with consultations on a new bill starting as early as 2016.

Nigel Feetham MP, Minister for Justice, Trade and Industry, told parliament the proposed legislation is “one of the most thoughtfully and expertly crafted and widely consulted bills” in Gibraltar’s legislative history.

Progress was held up multiple times: first by Brexit in 2016, which led EU gambling businesses to eventually leave the island, and then by Gibraltar’s effort to get off the Financial Action Task Force’s (FATF) grey list – a goal it reached in February 2024.

The bill also had to adapt to changes in the gaming industry brought on by the COVID-19 pandemic.

Roy Clinton MP, Shadow Minister for Finance & Value for Money, noted that the bill was developed through a “thorough consultative process.”

Shifting focus of regulation

In his parliamentary speech, Feetham emphasized the need for a “more adaptable regulatory system” capable of meeting the needs of a rapidly changing landscape.

Specifically, he stated the law will shift from focusing on where technology is based to where the management and control of a gambling operation actually take place.

Feetham said: “We’ve witnessed the growth of cloud IT infrastructure providers, a trend of gambling firms using a multi-jurisdictional strategy, and many jurisdictions moving from a restricted or monopoly model to one where local licenses are offered to commercial gambling companies on an open, non-discriminatory market basis.

“We need a law that covers any business with significant management or control of its operation in or from Gibraltar, instead of over-relying on where technology is located.”

Bringing marketing under the microscope

To gain better oversight of the peripheral services that support the gambling industry, the new act requires certain outsourced B2B services – like marketing and player fund management – to apply for a Gaming Operator Support Services (GOSS) Licence.

Feetham pointed out the growing number of companies in the B2B supply chain that compete across multiple jurisdictions.

He also expressed worry that some marketing activities by island-based companies fall outside “the regulatory scope.”

“Gambling services marketing has evolved, especially in social media promotion,” he said.

“Player acquisition and retention are the industry’s lifeblood, but marketing gambling products and managing customer relationships is controversial. If unregulated and unchecked, it could harm the industry’s reputation and the broader regulatory system.”

More power to the commission

The bill also boosts the regulatory authority of the Gibraltar Gambling Commission, giving it new powers to use risk-based enforcement tactics, conduct investigations, and impose financial penalties on non-compliant businesses. 

“A key practical flaw in the current act is that it only offers the ‘nuclear option’ of suspending or revoking licenses for violations,” Feetham explained.

“In contrast, the new bill outlines a range of proportional penalties and lets the gambling commissioner use a more structured, statutory approach to regulatory investigations and inquiries.”

To account for these enhanced enforcement powers, the bill also creates a gambling appeals tribunal.

Flexibility in legislation

Feetham frequently noted the industry’s rapidly changing nature and the need for the new regulatory framework to reflect this while maintaining clear regulatory goals.

He stated the bill “enables future-proofing” as technological innovation speeds up, and work has already started on a digitalization project to improve communication with the industry.

Feetham concluded: “The new act won’t alter Gibraltar’s business-friendly culture. If you’re ready to be a responsible corporate citizen – paying taxes, protecting consumers, and preventing financial crime – you’re welcome here. We’re open for business and will keep innovating.”