Gibraltar Gambling License

Gibraltar is a British Overseas Territory with its own gambling legislation and regulatory bodies. It’s renowned as a reputable, and prestigious jurisdiction where it’s rather difficult to obtain a gambling license due to very high requirements for applicants. Those businesses who manage to obtain one of the Gibraltarian gambling licenses can benefit from a very competitive taxation system, an opportunity to open a merchant account, and complete safety and confidentiality of personal data and financial activities. Overall, having a Gibraltarian gambling license helps showcase trustworthiness and high standards of business operations.

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Advantages of the Gibraltarian Gambling License

There are several reasons why Gibraltar is home to the world’s leading online gambling operators and why you might want to become the next licensee. Firstly, its economic environment is widely recognized for stability and support to innovation, as well as its well-developed business infrastructure offering world-class public services. Considering that gambling licensees are required to have registered offices with employees in Gibraltar, it’s worth noting that Gibraltar’s workforce is valued for productivity and a vast array of competencies. Moreover, operational costs are among the most competitive ones in Europe.

Gibraltar is also known for its competitive tax rates. There’s no VAT, and taxes aren’t levied on capital gains, sales, gifts, or wealth either. Corporate profits are taxed at a 12,5% rate which is very favorable compared to other European jurisdictions. Online casinos are taxed at a 1% rate on their gross profit. A 1% tax rate is generally levied on the annual turnover of fixed odd betting activities but the tax is capped at 425,000 GBP (approx. 497,000 EUR) per year, and the minimum payable amount is 85,000 GBP (approx. 99,500 EUR).

A very low – 0,15% – rate is levied on the following profits:

• The first 100,000 GBP (approx. 117,000 EUR) of the operator’s gross, betting profit on bet receipts each year
• The first 100,000 GBP (approx. 117,000 EUR) of the operator’s gross profit on betting event revenues in each year
• The first 100,000 GBP (approx. 117,000 EUR) of the operator’s gross gaming yield on gaming receipts each year

Since Gibraltar is a British Overseas Territory, there is also a possibility for the passporting of the gambling license and other regulatory approvals between the Gibraltarian and British jurisdictions. This allows Gibraltarian gambling license holders to conduct gambling business in the UK without having to go through the extensive authorization process as they simply have to register with the relevant British authority.

On the whole, the government of Gibraltar is dedicated to ensuring that the regulatory standards remain at the forefront of sound and effective regulatory practices, whilst promoting a creative and competitive business environment. Therefore, the national regulator seeks to protect gambling customers and facilitate fair and socially responsible gaming practices without suppressing new commercial opportunities. The regulator’s practical approach to business needs allows gambling operators to grow within a secure and transparent environment.

Advantages

Gambling Regulations in Gibraltar

The Gibraltar Gambling Commissioner (GGC) is the supervising authority responsible for the enforcement of relevant regulations which differentiate between online and offline gambling activities, and assurance that license holders act within the terms of their license agreements. It closely cooperates with international regulators to ensure crime-free and responsible gambling practices and maintain its top-tier regulatory framework. The GGC-managed Gibraltar Licensing Authority is responsible for granting, renewing, and revoking gambling licenses in line with relevant regulations.

Gambling activities are predominantly regulated by the following legislation and guidance:

• The Gambling Act 2005
• Code of Practice for the Gambling Industry: The Generic Code
• Code of Practice for the Remote Gambling Industry: the Anti-Money Laundering, Countering the Financing of Terrorism and Counter-Proliferation Financing Arrangements (AML Code)
• Gambling (Duties and Licensing Fees) Regulations 2018
• The Companies Act 2014
• The Proceeds of Crime Act 2015

The Gambling Act 2005 is modeled on the UK Gambling Act 2005 and is a crucial piece of legislation covering non-remote betting and betting offices, non-remote gaming, and gaming establishments, non-remote lotteries, betting intermediaries, and remote gambling. It also stipulates obligations applicable to all types of gambling license holders which include payments of charges, fees, and gaming taxes, record keeping and provision of audited accounts, as well as procedures of internal controls.

Pursuant to the Gambling Act 2005, the term “gambling” means betting (including pool betting) and bookmaking, gaming, and promoting or entering a lottery. The term “gaming” means playing a game of chance for a prize. The term “betting” is defined as the act of making or accepting a bet on the outcome of a race, competition, or other event of any description, the likelihood of anything occurring or not occurring, or whether anything is or isn’t true.

The Generic Code was created to provide guidance based on the interpretations of the Gambling Act 2005, including certain changed provisions. It outlines and explains the regulatory framework within which Gibraltarian remote and non-remote gambling license holders are obligated to operate. In this code, the rules for responsible gambling and their publishing, operating procedures and internal controls, and transaction record keeping are interpreted.

As a gambling license applicant in Gibraltar, you should also take note of the Anti-Money Laundering, Countering the Financing of Terrorism and Counter-Proliferation Financing Arrangements (AML Code), issued by the GGC. It covers such areas as principles of customer due diligence, AML reporting requirements, and financial sanctions.

The AML Code stipulates, inter alia, the following key provisions for all gambling license holders:

• License holders must clearly identify a board member with strategic responsibility for AML/CFT issues
• License holders must appoint a director or senior manager to ensure compliance with AML/CFT requirements pursuant to the Proceeds of Crime Act 2015 and the AML Code
• The company’s board should receive at least an annual AML/CFT report, including an annual update on the corporate risk assessment and the work of the Risk Management Committee
• The licensee is also obligated to appoint an AML/CFT officer, or a nominated officer, whose role is to develop, implement, and oversee internal AML/CFT policies

Types of Gambling Licenses in Gibraltar

In Gibraltar, gambling licenses cover casino gaming (e.g., slots and casino table games, betting (e.g., horse race betting), various lotteries, and social gaming. Gaming licenses are divided into business-to-consumer (B2C) and business-to-business (B2B) licenses. B2C licensees are authorized to offer gambling services directly to players, and B2B licensees are permitted to support B2C licensees by offering such services as software as a service (SaaS). All types of licenses are valid for 5 years which is another advantage compared to jurisdictions with annual renewals.

The GGC grants the following gambling licenses:

• Remote Gaming B2C Operator (suitable for online casinos)
• Remote Betting B2C Operator (designed for online bookmakers and organizations)
• Other Remote B2C Gambling Product Provider (suitable for betting intermediaries)
• Non-Remote B2C Gaming Operator (suitable for land-based casinos)
• Non-Remote B2C Betting Operator (suitable for land bookmakers and lotteries)
• Gambling B2B Support Service Provider (suitable for gaming software or game developers)

Requirements for License Applicants

To apply for a gambling license in Gibraltar, you first have to open a local company with a local office and local directors. Only companies with impeccable reputations, and gambling industry experience have an opportunity to obtain one of the prestigious gambling licenses in Gibraltar. The authority looks for evidence that an applicant is an established, stable and well-recognized corporation with no exposure to crime or unfair practices.

Every license applicant should ensure and demonstrate that the following requirements are met:

• A thorough and realistic business plan
• A plan of investment in the jurisdiction of Gibraltar
• Good financial standing
• The possession of a gambling license from another jurisdiction
• The development of internal AML/CFT methodologies and policies for the liaison with third-party suppliers and the GGC, provision of staff training, and the evaluation and reporting of any suspicious activity
• Gambling products and services must be tested and certified by an independent test house, approved by the Gibraltar Licensing Authority

You can choose from the following test houses:

• BMM Compliance
• eCOGRA
• Enex TestLabs
• Gaming Associates
• GLI Europe BV
• GLI Test Labs Canada ULC
• GLI UK Gaming Ltd
• iTech Labs
• Lean Lab Company Ltd
• Quinel M. Ltd
• SIQ Gaming Laboratories Ltd
• Trisigma B.V.

The following documents must be submitted along with the application form:

• Company incorporation certificate
• Memorandum of Association
• Articles of Association
• A notarized copy of the gambling license and financial reports from another jurisdiction
• Proof of no criminal history of shareholders and directors
• Documented internal AML/CFT policies, and internal control procedures
• A confirmation of the financial solvency of the founders and beneficiaries, and the sufficiency of the company’s funds
• Notarized photocopies of passports of shareholders, directors, and authorized persons
• Proof of addresses of shareholders, directors, and authorized persons
• Letters of recommendation from banks where shareholders, directors, and authorized persons are registered, and financial or other institutions that regulate gambling businesses
• Evidence of the company’s ability to pay out any possible winnings (photocopies of the payments made to the winners will suffice)

Top Gibraltar Regulatory Authority Licensed Casinos

Companies in Gibraltar with a gambling license

How to Establish a Gambling Company in Gibraltar

To become eligible for a gambling license in Gibraltar, you can establish either a Private Limited Liability Company (LTD) or a Public Limited Company (PLC) which are the most common legal structures of business. Shares of the latter are issued through an initial public offering (IPO) and are traded on public exchanges and are therefore suitable for bigger businesses. It only takes 1-2 weeks to incorporate a Gibraltarian company, provided that all the submitted documents are in order.

The main features of a Private Limited Liability Company (LTD):

• At least one shareholder (any nationality, and no residence requirements)
• At least one director
• A local company secretary
• At least 2 employees located in Gibraltar
• Minimum authorized share capital – 100 GBP (approx. 117 EUR) but it ultimately depends on the business model and is determined by the regulator
• A registered office in Gibraltar

The main features of a Public Limited Company (PLC):

• At least 7 shareholders (any nationality)
• At least 2 directors (any nationality, and no residence requirements)
• A company secretary
• Minimum authorized share capital – 20,500 GBP (approx. 24,000 EUR) but it ultimately depends on the business model and is determined by the regulator
• A registered office in Gibraltar

The following documents are required to establish a gambling company in Gibraltar:

• Memorandum of Association, signed by each shareholder in the presence of at least one witness
• Articles of Association
• A business plan that, among other things, includes a gambling business model, objectives, a marketing plan, financial forecasts, and software and hardware description
• Photocopies of passports of company shareholders and directors
• Proof of residential address (bank statement or a utility bill) of each shareholder and director of the company, no older than 3 months
• A statement of compliance declaring that the requirements of the Companies Act 2014 in relation to company registration have been complied with

To open a Gibraltarian company, you will have to take the following steps:

• Reserve a unique and compliant company name at the Companies House Gibraltar and receive a business name registration certificate
• Find and register an office in Gibraltar where your local staff will be based and all the legal and state correspondence delivered
• Open a corporate bank account at a bank located in Gibraltar
• Transfer required share capital to the new bank account
• Pay Stamp Duty of 10 GBP (approx. 12 EUR) on the share capital
• Settle the company registration fee of 100 GBP (approx. 117 EUR)
• Submit an application and all required documents to the Companies House Gibraltar
• Register the company and its employees with the Income Tax Office
• Register with the Employment Service

Gambling License Application Process

Once you’ve finished with the company formation in Gibraltar, you can apply for a gambling license. Depending on the gambling license type, it can take from 2 to 6 months to complete the application process after which the Gibraltar Licensing Authority grants a license only to a handful of most credible applicants.

To obtain a Gibraltarian license, you’ll usually have to take the following steps:

• Go through the regulatory due diligence to verify that ownership and control of the business are legal and transparent
• Find an independent software testing house and get your gambling software certified
• Submit all the required documents and a thoroughly completed application form to the Gibraltar Licensing Authority

During the period of considering the application, the Gibraltar Licensing Authority aims to evaluate, among other things, the characters, honesty, and integrity of the involved persons, their experience of conducting the gambling activities which the license would cover, and the ability to build and maintain the technical infrastructure required to conduct the gambling.

GAMBLING LICENSE IN GIBRALTAR

Requirements for Gambling License Holders

Once you obtain a gambling license, there are plenty of obligations to adhere to consistently. Every licensee must be managed and controlled from within Gibraltar and be prepared to produce and provide detailed information about key employees (including shareholders, directors, and executive managers) involved in the management and operations of the gambling company in Gibraltar.

It’s also obligatory to nominate a place for the safekeeping of the company’s transaction records and notify the GGC in writing, as well as prepare annual audited accounts for the GGC and consistently maintain financial records in line with the Companies Act 2014.

For these and other reasons, all bank accounts used to receive stakes, wagers, prizes, or other types of payments from customers must be controlled by the licensee applying for a license and all of these bank accounts must be maintained in Gibraltar unless the authority approves a different solution. None of the GGC-approved banking arrangements can be changed without first notifying the authority.

The annual license fees are as follows:

• Remote gaming B2C operators – 100,000 GBP
• Remote betting B2C operators – 100,000 GBP
• Businesses offering other remote B2C gambling products – 100,000 GBP
• Non-remote B2C gaming operators (land casinos) – 100,000 GBP
• Non-remote B2C betting operators (land bookmakers) – 100,000 GBP
• Gambling B2B support service providers – 85,000 GBP

Every license holder must ensure that its gambling rules are displayed in a way that is easily accessed by players entering gambling premises, or if it’s a remote gaming business, those rules must be easily accessible on the gambling website. It’s also mandatory to ensure fair and safe practices by creating barriers that prevent minors from gambling, and ensuring all promotional activities are true and accurate.

Moreover, all license holders are required to register with the Data Protection Commissioner and adhere to the following rules:

• Data should be obtained and processed fairly and lawfully
• Data should be kept and used only for the purposes it was obtained
• Data should be kept accurate and up to date
• Data must be kept safely and securely
• Customers are entitled to see their personal data held by the gambling licensee

Among plenty of other obligations, license holders are required to establish an effective system of internal controls and operating procedures which includes a set of paper or electronic documents, often referred to as standard operating procedures, describing the company, principles of business conduct, the monitoring arrangements and responses in relation to activities carried out under the license.

Our team here at Regulated United Europe will be delighted to support you in incorporating a company and obtaining a gambling license in Gibraltar. With dedicated legal advisors, tax experts, and financial accountants at your side, you will find the incorporation and application processes easy, frictionless, and transparent. Contact us now to schedule a personalized consultation and set the stage for long-lasting success.