Gibraltar, the British Overseas Territory located on the southern tip of the Iberian Peninsula, is making headlines with the introduction of its new Gambling Act 2025. This marks a significant overhaul of its gambling regulatory framework, reflecting the rapid evolution of the gaming industry, especially in a post-Brexit world.
The new legislation, which replaces the outdated Gambling Act 2005, is designed to modernize Gibraltar’s approach and solidify its status as a premier regulatory hub. Gibraltar was recently taken off the European Commission’s list of high-risk jurisdictions, and the 2025 Act is a step towards enhancing its reputation in the global gaming industry.
Victoria Reed, a regulatory consultant and founder of Better Change, notes that the 2025 Act, which became effective on 1 October with a transitional period of six months, is a “substantive and directionally aligned” advancement. Gibraltar’s reputation as a well-regulated hub has been built on a low corporate tax rate, access to skilled people, and a regulator that maintains a balance between commercial interests and strict oversight. This unique positioning has attracted many of the industry’s biggest brands over the years.
However, the post-Brexit landscape changed Gibraltar’s dynamics. Without the ability to passport licenses across the EU, Gibraltar’s value became more intertwined with its assured access to the UK market. As Reed puts it, this shift necessitated a focus on reputation and substance, goals that the new act aims to achieve.
The framework expands the regulatory scope, strengthens oversight across the value chain, and emphasizes economic substance. According to Andrew Lyman, head of Gibraltar’s Gambling Division, any gambling business managed and controlled from Gibraltar now potentially falls within this new regulatory scope.
Key innovations in the new act include requirements for licensees to demonstrate real economic substance in Gibraltar through local staff, offices, and tax contributions. The act aims to eradicate “brass plate” operations that do not provide substantial benefits to the jurisdiction. Additionally, the licensing perimeter has been expanded to include distinct licenses for B2C, B2B, and “Gaming operator support services.” Activities like marketing, CRM, and software hosting now require separate approvals.
Another significant introduction is the “Approved Persons” regime, which requires senior decision-makers to undergo personal vetting and licensing, enhancing individual accountability. Marketing activities conducted “in or from Gibraltar” are now regulated, bringing affiliates, group marketing hubs, and creative agencies into the scope of the act. The Gambling Commissioner’s enforcement powers have been significantly enhanced, with the authority to issue administrative fines and conduct inspections.
A noteworthy addition to the regulatory landscape is the establishment of the Gambling Appeals Tribunal, an independent body designed to handle appeals against decisions made by the Gambling Commissioner. This tribunal reinforces the jurisdiction’s commitment to robust regulation, fairness, transparency, and legal accountability, ultimately adding another layer of trust that should attract serious operators.
For stakeholders, the new act raises standards across the board, with significant operational implications for operators and key personnel. Operators must reassess their group structures to determine which business units require licensing, potentially leading to multiple license applications and reorganized governance for multinationals. B2B providers and third-party support services must evaluate whether they require standalone licenses, while senior personnel are now subject to individual accountability under the “Approved Persons” regime.
While the new regulation has been welcomed, it presents challenges, including increased compliance costs and reporting obligations. Smaller operators or those with leaner compliance models may find these requirements particularly burdensome. The anticipated UK-EU border agreement is expected to ease recruitment challenges by facilitating the movement of frontier workers from Spain.
Despite these complexities, there is some uncertainty around the implementation of certain rules. For example, the government has indicated that marketing carried out “in or from Gibraltar” generally requires its own license, but exceptions may be made on a case-by-case basis. Legal experts agree that further guidance may be needed to clarify licensing categories, especially concerning B2B versus B2C distinctions and potential dual licensing requirements.
Gibraltar’s iGaming sector remains a vital part of its economy, employing over 3,200 people across 54 operators and contributing significantly to the territory’s GDP. In a competitive landscape with jurisdictions like Malta and the Isle of Man, Gibraltar is positioning itself as a credible and risk-based market with regulatory discretion and pragmatism. As Minister for Justice, Trade and Industry Nigel Feetham noted, Gibraltar has never adopted a “no-questions-asked” model and expects licensees to respect local laws and obtain appropriate local licenses.
As the new act takes effect, both regulators and businesses will have to adapt. However, the tone remains optimistic, with renewed interest in Gibraltar as a jurisdiction that promises to remain at the forefront of the global online gambling industry. The real test lies ahead, as Gibraltar navigates the challenges and opportunities presented by this comprehensive regulatory framework.
4.1/5
