Gibraltar Online Gaming Laws
Gibraltar Gaming Overview
Gibraltar has been providing licenses to online casinos, online betting exchanges and online bookmakers since 1998. It is a well-recognized offshore financial center with a good reputation for regulation and transparency.
Gibraltar is a UK overseas territory and is part of the EU. It is now recognized by the UK Gambling Act 2005 which recognizes it as part of the European Economic Area (EEA) for the purposes of gambling legislation in the UK.
The Gambling Act of 2005 requires that all gaming operations in Gibraltar are licensed. Remote gaming licenses are issued by the Licensing Authority. A Gambling Commissioner, the Gibraltar Regulatory Authority, is necessary under the provisions of the Gambling Act. Under the Gambling Act 2005, Gibraltar can issue the following licenses: bookmaker’s license, betting intermediary’s license, gaming operator’s license, gaming machine license, lottery promoter’s license, pools promoter’s license and remote gambling license.
The Gibraltar Licensing Authority
Gibraltar is a leading jurisdiction for e-gaming and other e-commerce companies. It continues to strive to maintain its reputation as a leader and this is evident in its laws regarding online gaming licensing. The Licensing Authority will only license blue chip companies, with a proven track record in gaming, a realistic business plan and an established reputable standing. The Gambling Commissioner has the power to ensure that licensees conduct their businesses in accordance with their licenses and in a way that will not stain the good reputation that Gibraltar has achieved. The office of the Financial and Development Secretary in Gibraltar issues licenses.
The Gibraltar Gambling Division shoulders many responsibilities with regards to remote gambling licenses in order to uphold the reputation of Gibraltar. On the page I just mentioned you will find the gambling websites licensed by Gibraltar. The responsibilities of the division include overseeing the operation of licensees and the enforcement of license conditions, providing pertinent information regarding the regulations of the gambling community to the Gambling Commissioner, carrying out regulatory investigations, policies and procedures, representing the jurisdiction whenever necessary at international forums, assessing all license applications and advising the Licensing Authority, investigating potential breaches of laws or license conditions, resolving disputes between users and licensees, preparing general information for users and codes of practice for licensees and liaising with regulators in other jurisdictions in order to establish and maintain international best practices and cooperation between different jurisdictions.
The Electronic Commerce Directive
The Electronic Commerce Directive, while not applying directly to gaming, allows the clients of e-gaming companies that operate out of Gibraltar to rely on the statutory protection of the Electronic Commerce Act 2001.
Gaming License Costs and Gaming Taxes
- There is no start-up licensing fee in Gibraltar, however there is a £2,000 annual fee for maintaining the license.
- Fixed odds and betting exchange operations are taxed at 1% of total turnover with a cap of £425,000 per annum.
- Online casinos are taxed at 1% of the gross product with a cap of £425,000 per annum.
- Gibraltar non-resident companies need not be registered for tax purposes and therefore do not pay capital gains taxes, estate taxes, VAT, wealth taxes or gift taxes.