Gibraltar has taken the first formal step toward overhauling its gambling laws, with a new bill introduced in Parliament on Wednesday (March 18). The proposal begins the process of replacing the territory’s long-standing 2005 framework with a broader and more modern system.
Lawmakers will now move the bill through its next stages, including a second reading, detailed committee review and a final vote. If it clears those hurdles, it will go forward for Crown assent before becoming law.
Framework update for Gibraltar gambling bill
The legislation redraws how gambling is licensed, monitored and enforced in Gibraltar. It is designed “to repeal the Gambling Act 2005 and to make new provision for the licensing, regulation and supervision of gambling.”
The new structure puts a licensing Authority and a Gambling Commissioner at the center of oversight, backed by defined goals such as protecting consumers, maintaining market integrity and tackling financial crime.
The scope of regulation is also set to widen as well. The rules would extend beyond operators to include marketing affiliates, software providers and certain ownership arrangements connected to gambling businesses.
Another notable change is how licensing applies across borders. Companies could fall under Gibraltar’s rules even if gambling activity happens elsewhere, as long as key management or operational control sits within the jurisdiction.
The bill also tightens expectations around economic substance. Businesses will be required to show a “sufficient substantive presence” in Gibraltar, including real staffing, infrastructure and tax contributions.
Senior personnel will face closer scrutiny as well, with some required to be approved as “regulated individuals”, adding personal accountability inside licensed firms.
Existing operators would be given a six-month transition window after the law takes effect, allowing them to continue operating while applying under the new system.
The proposed changes arrive as Gibraltar’s online gaming sector faces pressure from UK tax policy shifts. Recent increases in UK remote gambling duties, highlighted in industry reporting and debates involving both Gibraltar and Northern Ireland stakeholders, have raised concerns about competitiveness and profit margins. Separate analysis linked to UK budget discussions has also pointed to potential further tax tightening, adding uncertainty for operators based in Gibraltar but serving UK customers.
The bill strengthens enforcement tools as well. The Gambling Commissioner would gain more authority to demand information, issue penalties and act against non-compliant companies. A new Gambling Appeals Tribunal would also give operators a formal route to challenge decisions.
Presenting the bill, Nigel Feetham KC, Minister for Justice, Trade and Industry, said the government was working to respond to recent UK tax changes affecting the sector.
“But Madam Speaker, we are working intensely and at pace to bridge as far as possible the gap created by the recent UK tax decision.”
He added: “Whilst the corporate tax revenues because of the UK tax changes cannot be fully restored by the end of this year through new entrants alone, the ongoing growth of the sector will create important future revenue streams.”
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