iGaming and betting operations with a Gibraltar gambling license are associated with trustworthiness, responsibility, and a solid, reliable reputation. Over the years, Gibraltar has established itself as one of the online gambling industry’s most highly reputable licensing jurisdictions. One of the main reasons is that it is extremely picky about its licensees and grants licenses only to the most dependable and credible companies running online casinos, online poker, sports betting, and other gambling activities.
Located next to Spain at the southern tip of the Iberian Peninsula, Gibraltar is a small British Overseas Territory. Only 2.6 square miles wide, it is home to over 32,000 residents, 12% of which are employed in the gambling industry. Gibraltar has been issuing gaming licenses since 1998.
Licenses can be obtained from the Gibraltar Licensing Authority which is managed by the Gibraltar Regulatory Authority (GRA). The GRA was appointed by the Gambling Commissioner in 2005. Licensees are regulated by the Gibraltar Gambling Commissioner under the Gambling Act 2005. This act was introduced to lay down the legislative framework for Gibraltar’s online gambling license regulations.
Gibraltar is a full EU member and appears on the UK Gambling Commission’s “White-list”. This allows Gibraltar licensees to offer their services to UK residents. An estimated minimum of 55% of online gambling in the United Kingdom occurs on servers based out of Gibraltar.
In addition to this advantage, other notable benefits of obtaining a Gibraltar gaming license include low taxes, zero VAT (Value-added Tax), straightforward pricing structure, low amount of competitor vendors, reliable governance, and prestige within the industry.
Of course, as is the case with all gaming control boards, applying for a license is easier said than done. In our Gibraltar gambling license review we’ll provide you with details including the types of remote B2C licenses available, application requirements, costs, as well as the benefits and drawbacks associated with this industry regulator.
Gibraltar License Fast Facts
- First gambling license issued – 1998
- Regulator – Gibraltar Gambling Commissioner
- License provider – Gibraltar Licensing Authority
- Number of license types – 6 (4 are for online gambling)
- Approximate license costs – £100,000+
- Average time to obtain license – 2 – 6 months
- License validity period – 5 Years
Types of Licenses – What Licenses Does Gibraltar Offer?
There are six different types of Gibraltar gambling licenses. However, only four apply to remote (online) gambling and one of these four is a B2B (Business-to-Business) license. All licenses are obtained through the Gibraltar Licensing Authority, while the present day appointed Gambling Commissioner is responsible for ensuring licensees conduct their operations in accordance with the Gambling Act 2005 to maintain the good reputation of Gibraltar.
Four types of remote gaming license
- Remote Gaming B2C Operator – (e.g. online casino)
- Remote Betting B2C Operator – (e.g. online sportsbook)
- Other Remote B2C Gambling Products (e.g. betting intermediaries)
- Gambling B2B Support Services
Other types of gambling licenses
- Non-Remote B2C Gaming Operator (e.g. land-based casinos)
- Non-Remote B2C Betting Operator (e.g. land-based bookmaker, lotto retailer)
Gibraltar gaming licenses are valid for five years and are usually extended beyond this point. That said, there is an annual license fee that must be covered to maintain the validity of the license.
The License Process – How Do I Get a Gibraltar Gambling License?
To obtain a Gibraltar license, you are required to meet certain criteria. Traditionally, the Licensing Authority only considered licensing blue chip (established, stable and well-recognized corporations) companies that also held licenses from other authoritative regulators and had proven themselves to be reliable in these jurisdictions.
Today, the Licensing Authority will also consider licensing startups and expanding operations that are appropriately funded and proposing to relocate wholly or partly from other jurisdictions. Any company seeking a license for the purpose of entering emerging non-EU markets are expected to provide a concise business plan that clearly details where the source of legitimate funding can be identified.
With that said, in this Gibraltar gaming license review, we’ll be focusing on how to obtain a B2C Business-to-Consumer) license. There are a number of requirements that need to be met by an applicant, including verifying their identity, passing a due diligence test, and proving their full business plan. The following are the main steps of obtaining a license from the Gibraltar Licensing Authority.
Requirements for obtaining a license
Step 1 – Establish a company presence in Gibraltar
To obtain a Gibraltar gaming license, your business must have a physical presence in Gibraltar. This could mean basing or re-locating your entire operation out of Gibraltar or having an office there. You will also need to use Gibraltar servers and licensee are expected to make an economic contribution to the jurisdiction.
Gibraltar is a hub for both UK and international facing operators and there is plenty of online gambling talent within the region, so you shouldn’t have trouble partnering with other iGaming businesses or employing the appropriate experts.
Step 2 – Regulatory due diligence
As an applicant you must submit yourself to regulatory due diligence. This regulatory due diligence focuses on establishing beneficial ownership and control of the business. You will need to provide information about key personnel, including directors, executive mangers, and shareholders.
You must confirm the validity of all key persons involved and may be required to supply certain information, including:
- Certificates of good conduct from jurisdictions in which key persons work or reside or they retain nationality
- Letters of recommendation from banking, financial or other institutions
- Previous regulatory history
Applicants or those holding key management functions can be rejected if they do not meet the criteria of the fitness and propriety threshold.
Step 3 – Clear outline of your business plan
The Licensing Authority needs to understand the corporate structure of your business. As such, the executive management needs to demonstrate their competence via a cogent business plan as well as through proposals for effective policies, procedures and governance, consumer protection and responsibility. Additionally, applicants must outline the economic benefits they hope to bring to Gibraltar, such as:
- Employment
- Rental of office space
- Use of Gibraltar technical infrastructure providers
- Future tax yield (PAYE, Corporation tax, and so on)
In essence, any and all relevant information that will assist your application should be submitted. You also need to have clear and credible policies in respect to:
- Anti-money laundering
- Terrorist & proliferation financing
- Data protection
- Social responsibility/consumer protection
Step 4 – Engage with the Gambling Commissioner
Prior to submitting a formal license application form and issuing other documentation, you are expected to engage with the Gibraltar Gambling Division and the Gambling Commissioner. This meeting serves as an early assessment of your suitability and competence as a gambling operator as well as your business’ controllers and proposed management.
Step 5 – Testing requirements
You are required to ensure that your gambling products and services have been tested and certified as compliant with the jurisdiction’s regulatory model and standards. This is achieved by using once of the independent test houses that have been approved by the Gibraltar Licensing Authority.
The following is a list of Gibraltar-approved independent test houses that can carry out this procedure:
- eCOGRA
- iTech Labs
- Gaming Associates
- GLI Europe BV
- GLI Test Labs Canada ULC
- GLI UK Gaming Ltd
- BMM Compliance
- SIQ Ljubljana
- Trisigma B.V.
- Enex TestLabs
- Quinel M. Ltd
Step 6 – Wait for the license to be issued
How long it takes for a license to be issued varies. However, a strong application with no issues and a clear, credible business plan and policies will receive a license in the shortest amount of time. The average licensing time is between 2 to 6 months on average.
To sum up the Gibraltar gambling application process, here’s a brief overview.
License Costs – How Much Does a Gibraltar License Cost?
The Gibraltar gambling license cost structure is fairly straightforward. For B2C licenses the license fees are as follows:
As for tax*, the gambling business tax is 1% from revenues. The amount cannot be more than £425,000 or less than £85,000 per year. Beyond that, there is no sales tax and no VAT.
Although licenses are granted for a five-year term, and are usually extended beyond that, licensees are still subject to an annual £2,000 licence fee* to maintain the validity of their license.
*Note: Please be advised that all costs mentioned above are for informational purposes only to provide an overall idea of expenses associated with obtaining an online B2C license from Gibraltar. It does not include costs associated with B2B or land-based licenses.
Licensee Regulations – What Rules Am I required to Follow?
All Gibraltar licensees must comply with licensing under the Gambling Act 2005. This means business must (among other regulations):
- Have a strong commitment to transparency
- Follow all rules and laws
- Protect all players (especially minors and vulnerable gamblers) from gambling-related harm
- Adhere to anti-money laundering measures and prevent criminal activity
In what regions does this license allow me to operate?
The Gibraltar gaming license covers many regions across the globe. Some of these include:
- UK
- Canada
- Australia
- New Zealand
- India
- Norway
- South Africa
That being said, a Gibraltar remote gaming license will not cover regions where no form of online gambling is illegal. Moreover, in places where certain forms of remote gaming is illegal, such as online casinos in Australia, only a Remote Betting B2C Operator license would cover Australia customers. Additionally, countries with local online gambling regulations may require you to obtain a license from their specific gaming control board if you wish to advertise to their residents, such as USA (individual states), Sweden, France, Italy, etc. Certain payment providers may also require specific jurisdiction licenses.
License Pros and Cons – Is a Gibraltar License Right for Me?
Applying for a Gibraltar license has both its advantages and disadvantages. It’s important to know what these are, to help you to determine if you are an appropriate candidate for this license.
Gibraltar gaming license advantages
- Low taxation – With low revenue tax per year, low corporate tax for gambling businesses in Gibraltar, and no sales tax and no VAT, Gibraltar is an attractive licensing jurisdiction compared to others where annual taxes are far higher.
- Excellent reputation – Gibraltar has one of the best reputations in the world as an iGaming license regulator. By default, any company that has a license from this jurisdiction is also often held in high esteem by the industry and players, as it is considered to be trustworthy and reliable.
- Gibraltar is on the UKGC’s “White-list” – Being white-listed by the United Kingdom Gambling Commission gives licensees the advantage of advertising their brands to residents in the UK.
- Access to European iGaming market – The opportunity to become a part of the European iGaming market comes with the convenience of cooperating with European banking authorities. Additionally, foreigners receive the same guarantees as local companies.
Gibraltar gaming license drawbacks
- License is difficult to obtain – The licensing process in Gibraltar is highly complex and can be time consuming. This jurisdiction is very picky about who it accepts as a licensee. You will need to prove that you are the proper fit by providing a concise business plan, submitting plenty of paperwork, showing you have legitimate funds, are prepared to follow all policies, and are ready for due diligence processes and audits.
- License is expensive – There’s no question that this license is expensive. You can expect to pay £100,000 for a licence as well as cover other costs and fees. Plus, if you need two separate licenses, this will require you to pay for two licenses, an additional £100,000.
Gibraltar Gambling License FAQ
Times vary. On average, it takes between three and six months to complete the application process and to be issued a license.
If you plan to offer online casino products you will require a Remote Gaming B2C Operator license. If you plan to run an online sportsbook, you will need a Remote Betting B2C Operator license.
A B2C operator license costs £100,000, not including other taxes and fees.
Gibraltar is a highly reputable jurisdiction and a leading country in remote gaming licensing. Many of the world’s most respected and largest online gambling brands hold this license. Companies with this license are considered to be trustworthy and reliable. A Gibraltar license gives you access to UK players.
That’s something that only you can decide. You need to determine if it is the right choice for your gambling operation. However, even if you find a Gibraltar eGaming license is not for you, it is important to license your operation with a reputable regulator, such as those jurisdictions we review. Without a license, you will not be able to open bank accounts, most software companies will not want to do business with you, and you can face fines or closure of your business if you’re discovered operating in regions without the appropriate license.
How Can Casinnovate Help Me Get a Gibraltar License?
Casinnovate knows reputable iGaming software platforms and solutions providers who can help you obtain a Gibraltar license and/or who hold a Gibraltar license and offer products and services that are fully compliant with this jurisdiction’s laws and regulations.
We can connect you with these experts and start you on your path toward making your online casino or sportsbook business and gaming licensing goals a reality. Among the providers we recommend include:
2WinPower
Have more questions or curiosities about the Gibraltar gambling license? Get in touch with us! We’re always happy to help.
