Gibraltar is one of those iconic gambling jurisdictions whose authority is rarely brought under question. Gibraltar is a self-governing territory of the United Kingdom. At the same time, Gibraltar conducts its independent policy in a number of important matters, one of which is taxation.
The body that monitors and regulates gambling in Gibraltar is called the Gibraltar Regulatory Authority. Since its foundation in 1998, the agency has come a long way, establishing a strong name for itself in the gambling industry. The GRA issues licenses to top Australian casinos, lotteries, bookmakers, bingo halls, software providers, and other gambling businesses. The legislative instrument that regulates all gambling activities in Gibraltar is the 2005 Gambling Act.
It’s no surprise Gibraltar is mainly known for gambling. It’s a vital gambling hub for casinos operating both online and offline. Gibraltar boasts 4 luxurious brick-and-mortar casinos which are known for their top-tier service. Just thinking about this spectacular and telltale statistic: more than 10% of Gibraltar’s population are involved in providing gambling-related services to the locals and foreigners alike. Gambling is indeed the backbone of this small yet prosperous community. Running a gambling business in Gibraltar is a thing to be aspired for.
There are many reasons why gambling businesses choose the Gibraltar jurisdiction. Let’s see the most fundamental benefits of licensing top Australian casinos in the Gibraltar zone.
- Since Gibraltar is a part of the United Kingdom, it’s only logical that it enjoys exclusive treatment from the British authorities. Indeed, if a gaming operator has a Gibraltar license, it can provide services to people living in the United Kingdom. How cool is that? Knowing just how much the British are passionate about gambling and sports betting, the UK is one of the most profitable and coveted igaming markets in the whole world. Having access to this market is a lucky ticket for any good Australian casino. Plus, a Gibraltar license is recognized in many other countries across the globe, which means you're holding a key to the international market as well.
- Gibraltar is nothing short of a tax haven for gambling operators. The gambling jurisdiction is known for its extra low taxes for casinos and sportsbooks. All gambling businesses registered in Gibraltar are paying a 10% corporate income rate. At the same time, gambling operators are exempt from VAT tax and sales tax. Tax on bets rests at a comfortable 0.15%.
- Gibraltar goes an extra mile to provide unprecedented support to its home companies. The jurisdiction has a lot to offer to gaming businesses in terms of infrastructure, finance, telecommunications, etc. This jurisdiction surely knows how to create a beneficial environment for gaming companies to thrive in. The Gibraltar government ensures a wide array of guarantees for Gibraltar license holders.
Over the years, Gibraltar has granted licenses to hundreds upon hundreds of trustworthy gaming operators and bookmakers. To see the full list of Gibraltar-licensed companies, go to www.gibraltar.gov.gi. Some of the most prominent names that ring a bell are Yggdrasil Gaming, Pragmatic Play, Red Tiger, Relax Gaming, Play’n Go, IGT, Greentube, and others.
Like any gambling regulator, the Gibraltar Regulatory Authority distinguishes between B2C and B2B licenses. B2C (Business to Consumer) licenses are issues to operators that provide gambling services (online or offline) directly to clients/gamblers. It can be a top Australian casino, bingo hall, etc. At the same time, if you’re developing gambling games or other software for gambling operators, you’re going to need a B2B (Business to Business) license.
Speaking of B2C licenses, the Gibraltar Regulatory Authority provides one type of licenses for all types of gambling activities, such as:
- top Australian online casinos (including Bitcoin casinos);
- sportsbooks (including eSports);
- games of skill;
You only need one license to provide all the above services, so if you decide to expand your business into other igaming niches, you won’t have to hunt for another license and pay extra.
Getting a Gibraltar license is not easy (nor should it be) but once you’ve obtained it, your chances to grow a successful gambling business multiply tenfold. A Gibraltar license is a hallmark of quality, reliability, and prestige. Gibraltar-licensed casinos get exclusive access to the European market, with millions of eager gamblers waiting for new exciting casinos, games, and tournaments. For a gambling business, this is a stellar chance to grow a client base, build a good reputation, and start earning a good income, while making an invaluable contribution to the development of the igaming sphere.
On the other hand, holding a Gibraltar license comes with a great deal of responsibility on the end of a gambling operator. The Gibraltar Licensing Authority audits every single financial transaction made between the player and the casino. Plus, the Gibraltar regulator audits the gaming systems used by top Australian casinos, including their rules, RTP values, history of outcomes, and other parameters. This way, the Gibraltar regulator is making sure that its licensees offer fair igaming software that is not rigged or manipulated in any other way.
Gibraltar licensee must have their products and services tested by independent testing facilities. Some of the testing agencies approved by the Gibraltar Licensing Authority are:
- iTech Labs;
- BMM Compliance;
- GLI UK Gaming;
- Enex TesLabs;
- Quinel M;
- and others.
Licensing requirements & Cost
The Gibraltar Regulatory Authority expects its potential licensees to meet a long list of requirements that confirm their integrity and solid financial standing. Let’s make a really quick overview of some of these requirements.
- Your company must be registered in Gibraltar.
- You need to have your bank accounts opened with one of the Gibraltar-based banks.
- Before applying for a Gibraltar license, you already need to have at least one gambling license under your belt.
- You need to provide proof of your expertise in the igaming industry. Your task is to convince the Gibraltar regulator that you actually have the required skills and experience to render top-tier gambling services to customers.
- Finally, it goes without saying that you and your business partners must have crystal clear reputations. Any hint at previous criminal history, such as fraud or money laundering, is unacceptable.
You should understand that we’re only scratching the surface with this short list of requirements but hopefully it will give you some idea of how serious the Gibraltar regulator approaches the licensing process.
As for license fees, they vary for B2B and B2C companies. If you’re applying for a B2B license, your annual fee will be 100,000 British pounds. For B2C operators, the fee stands at 75,000 British pounds. In both cases, the amount of the fee is not determined by your income level.