TLDR
- Gibraltar’s 2025 Gambling Bill passed its first parliamentary reading, moving closer to replacing the 2005 Gambling Act
- The UK plans to raise Remote Gaming Duty to 40% starting April, putting pressure on Gibraltar-licensed operators
- Gibraltar was removed from the FATF gray list two years ago, clearing the path for new regulations
- The new bill strengthens the Gibraltar Gambling Commission with risk-based enforcement and financial penalties
- Officials say Gibraltar aims to expand its gambling sector globally rather than relying solely on UK licenses
Gibraltar’s parliament has passed the 2025 Gambling Bill through its first reading. The legislation now moves to the committee stage and a third reading before it can be sent to the Crown for final approval.
This bill has been in the works for years. Officials began preliminary discussions four years ago and formally introduced the draft last June.
The new framework will replace the 2005 Gambling Act. That older law originally set online betting regulations for both the United Kingdom and Europe.
Gibraltar’s path to this point was not straightforward. The Financial Action Task Force had placed the territory on its gray list of high-risk jurisdictions. Two years ago, Gibraltar was officially removed from that list after meeting compliance requirements.
That international clearance gave the local government the confidence to push ahead with the new gambling rules.
UK Tax Changes Add Urgency
A major factor driving the legislation is a tax increase announced by the UK Chancellor ahead of last year’s Autumn Budget. The UK government plans to raise the Remote Gaming Duty to 40% beginning in April.
This matters for Gibraltar because several UK-facing gambling operators hold licenses in the territory. Industry stakeholders raised concerns about the impact almost immediately.
Gibraltar Gambling Commissioner Andrew Lyman warned that the tax hikes would affect the local economy. Other sector leaders echoed those concerns.
During the first reading, Minister for Trade, Justice and Industry Nigel Feetham addressed the financial challenges directly. He said his department is working to bridge the gap created by the UK tax decision.
Feetham acknowledged that Gibraltar cannot fully recover lost corporate tax revenues by the end of this year through new market entrants alone. He added that ongoing growth in the sector will bring in future revenue.
New Powers for the Gambling Commission
The bill introduces several structural changes to how gambling is regulated in Gibraltar. It expands licensing requirements across the entire value chain.
The rules also increase personal accountability for senior executives at companies that hold betting licenses.
Under the new framework, the Gibraltar Gambling Commission will have stronger regulatory control. The GGC will use risk-based enforcement strategies, conduct investigations, and issue financial penalties to businesses that do not comply.
The legislation also brings in new regulations for business-to-business activities, including marketing services. Lawmakers created new license categories that cover a wider range of operations than the 2005 Act allowed.
To balance the increased enforcement powers, the government will launch a sanctions appeal tribunal.
Commissioner Lyman outlined the broader strategy behind the changes. He wants the territory to grow its gambling sector on a global scale rather than depending only on UK licenses.
Lyman said Gibraltar has no plans to step back from the international gambling market despite the upcoming UK tax increases.
Feetham echoed that position in parliament. He said the new bill is designed to maintain market confidence, promote safe gambling, and prevent criminal exploitation of the industry.
He added that while the 2005 legislation delivered sustainable economic activity and protected Gibraltar’s reputation, the UK tax changes confirmed the need for a more flexible regulatory regime.
The bill must still pass the committee stage and third reading before receiving Crown approval.
