Nestled at the southern tip of the Iberian Peninsula, Gibraltar, the small British Overseas Territory, has long held a unique position as a premier hub to the gambling industry. And now it is stepping into a new era.
With the introduction of Gibraltar’s new Gambling Act 2025, the jurisdiction is embarking on a broad reform of its regulatory framework – designed to reflect the realities of a fast-evolving gaming industry in a post-Brexit landscape.
This legislative overhaul replaces the long-standing Gambling Act 2005, and aims not just to modernise but to reposition Gibraltar as a top-tier regulatory hub, after it was recently removed from the European Commission’s list of high-risk jurisdictions.
According to Victoria Reed, a regulatory consultant and founder of Better Change, the 2025 Act – effective since 1 October with a transitional period of six months – represents a “substantive and directionally aligned” leap forward.
”Gibraltar was one of the first jurisdictions to build a reputation as a credible, well-regulated hub. We’ve got a low corporate tax rate, access to skilled people and, crucially, a regulator that struck the right balance between commercial awareness and strict oversight which undoubtably helped attract many of the industry’s biggest brands,” she tells iGB.
Its close link to the UK gave operators access to the market, which cemented Gibraltar’s importance for many of the UK’s tier one players.
”After Brexit though, it lost the ability to passport licences across the EU, so its value became even more tied to its guaranteed UK market access. That shift meant Gibraltar had to double down on reputation and substance and the new act is designed to do exactly that,” says Reed
The framework, she explains, expands scope, embeds economic substance, strengthens oversight of the full value chain and maintains an active enforcement stance.
What’s included in Gibraltar’s new Gambling Act?
The new Gambling Act is comprehensive, placing new classes of businesses under supervision, introducing individual accountability for senior managers and enforcing real local economic presence.
As Andrew Lyman, head of Gibraltar’s Gambling Division, puts it: “Any gambling business now managed and controlled in or from Gibraltar potentially falls within scope.”
Key innovations within the new act include:
- Substantive presence requirements: Licensees must now demonstrate real economic substance in Gibraltar – through staff, offices, infrastructure and local tax contribution. The goal is to eliminate “brass plate” operations that offer little benefit to the jurisdiction.
- Expanded licensing perimeter: The act creates distinct licences for B2C, B2B and “Gaming operator support services”. Activities such as marketing and CRM, managed trading and software hosting now require their own approvals.
- Approved persons regime: For the first time, senior decision-makers will require personal vetting and licensing, similar to the UK’s Personal Management Licence. This enhances accountability at the individual level.
- Marketing oversight: All marketing activities conducted “in or from Gibraltar” will be subject to new regulation – bringing affiliates, group marketing hubs and even creative agencies into scope.
- Enforcement powers: The Gambling Commissioner’s powers are significantly bolstered. The commissioner can now issue administrative fines, cease-and-desist orders, conduct inspections and impose suspensions where warranted.
- Digitalisation and reporting: Operators must prepare for increased digitised reporting, particularly in relation to AML, financial disclosures, technical standards and safer gambling initiatives.
Gambling Appeals Tribunal introduced to review regulatory enforcements
Crucially, a Gambling Appeals Tribunal is being introduced. The independent body established under the updated Gambling Act is designed to hear appeals against decisions made by the gambling commissioner. These may include licence refusals, suspensions, revocations or other enforcement actions.
The tribunal’s creation marks a key milestone in Gibraltar’s broader regulatory reform, legal experts have said, reinforcing its position as a jurisdiction committed not only to robust regulation, but also to fairness, transparency and legal accountability.
Ultimately, it adds another layer of trust that should help to attract serious operators to the market.
Gibraltar’s new Gambling Act: Impact on stakeholders
Steven Caetano, partner at Isolas law firm, notes: “The act raises standards for all stakeholders, with the greatest operational impact on operators and their key personnel.”
Operators must overhaul their group structures to map out which business units will require licensing. For multinationals, this may mean multiple licence applications and reorganised internal governance. B2B providers and third-party support services – including marketing, technology and CRM services – must now assess whether they require standalone licences.
Similarly, senior personnel face new responsibilities, with the “Approved Persons” regime emphasising personal accountability front and centre.
Regulators gain more authority – but also a heightened responsibility to ensure fair, consistent and transparent enforcement.
In the end, players stand to benefit through stronger consumer protections, responsible gambling requirements and greater market integrity.
Navigating the challenges
Stakeholders have welcomed the new regulation, but it doesn’t come without significant challenges. Among them are increased compliance costs as new licence applications, reporting obligations and staffing requirements will drive up outlay – especially for smaller operators or those transitioning from leaner compliance models.
If the new act succeeds in attracting more business to Gibraltar, there will likely be demand for more local staff, though a relatively small labour pool in Gibraltar may pose recruitment challenges.
However, the anticipated UK-EU border agreement is expected to ease the movement of frontier workers from Spain, by removing the need for border checks between Spain and Gibraltar.
There is also a degree of transitional complexity. Although current licensees will be “grandfathered” into the new system, they will still need to undergo fresh applications within six months of the Gambling Act’s commencement.
Uncertainty around licensing categories in Gibraltar’s new Gambling Act
Speaking to iGB, legal experts agree there is a level of uncertainty around how some of the the new rules should be implemented.
Victoria Reed points to the uncertainties around licensing categories: “The government has said marketing carried out ‘in or from Gibraltar’ will generally need its own licence but has also indicated it may carve out some intra-group activity on a case-by-case basis. Until more secondary rules and precedents are published, operators can’t be entirely sure which affiliates, agencies or shared-service teams fall inside scope and which don’t.”
She also highlighted new rules around support services leaving room for interpretation.
”The act lists functions like managed trading, RNGs, hosting and advertising as ‘support services’, but leaves room for interpretation,” Reed adds.
”Multinational groups will need to decide whether in-house teams that straddle multiple hubs — for instance a centralised risk team partly in Gibraltar — require licensing.”
Caetano flags additional guidance could be needed to clarify B2B versus B2C licensing:
“The distinction between B2B and B2C activities is clearer, but some hybrid or cross-border models may require further guidance.”
In essence, it is unclear if dual licensing is needed or whether it could be covered under one tailored licence.
Credibility in a crowded field
Gibraltar’s iGaming sector, which employs more than 3,200 people across 54 operators, continues to be a cornerstone of the peninsula’s economy, generating 20% of its GDP.
Last year the sector contributed £110 million in corporate tax and £40 million in PAYE contributions. There are currently 83 licensees appointed – 49 B2C and 34 B2B.
In a reality where jurisdictions like Malta, the Isle of Man, and emerging offshore hubs are all vying for operator attention, Gibraltar’s message is clear about its brand: credibility, not convenience.
Where a place like Malta offers flexibility, and the Isle of Man applies rigid structure, Gibraltar positions itself in the middle as a risk-based market, but also with regulatory discretion and pragmatism, Reed explains
As Gibraltar’s Minister for Justice, Trade and Industry Nigel Feetham noted in his recent parliamentary budget address, Gibraltar has never operated a “no-questions-asked” model and the jurisdiction expects its licensees to respect local laws in other markets and take local licences where appropriate. This ethos is embedded in the 2025 Act.
“If we drive business away, it will be business we don’t want,” Lyman notes.
The real test begins now, where both regulators and businesses will be adapting to the new act, but the tone is optimistic.
“We’ve already seen renewed interest in the jurisdiction,” says Lyman. Caetano agrees the act “ensures Gibraltar remains at the forefront of the global online gambling industry for years to come”.
Gibraltar’s new Gambling Act seeks to increase compliance and award the regulator with more powers. But stakeholders have flagged ambiguities which require further clarification.