This week, Gibraltar approved a landmark gambling legislation designed to modernise its regulatory framework. It’s also expected to bolster the sector’s ability to compete internationally, as lawmakers respond to mounting pressures from changes in the UK market.
The Gambling Bill, passed by Parliament on Wednesday, will replace a dated but undoubtedly effective system with a more flexible and comprehensive approach. It should keep up with the rapid expansion of the global gambling industry.
Discussing the Bill, Minister for Justice, Trade and Industry Nigel Feetham said the reforms were critical as Gibraltar seeks to diversify beyond its traditional reliance on the UK, which currently accounts for roughly 75% of the sector’s gross revenues.
Industry Challenged by ‘Headwinds’
Despite recent challenges, Gibraltar’s casino sector has remained resilient. Still, there are some concerns. Increased UK online gaming duties have placed additional pressure on Gibraltar casinos and highlighted the need for new revenue streams.
Feetham shared that the government is working to bridge the gap created by recent UK developments. He added that while new entrants may not fully compensate lost tax revenues in the short term, the long-term outlook should remain positive.
“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.”
Focusing on Global Opportunities
The Government is looking to attract international investment, which would support the sector’s growth. Feetham pointed out recent engagements at major industry events, including ICE in Barcelona and Consensus Hong Kong, where contact with potential investors is already yielding results.
A licence application from a new operator is expected to be submitted to the Gambling Commissioner in the near future, which could signal early momentum behind the Government’s diversification strategy.
A Modern Framework for an Evolving Sector
At the core of the legislation is a shift in how gambling businesses are regulated. Instead of focusing primarily on where technology is hosted, the new framework emphasises where real management and control of operations take place.
This change reflects broader industry trends, including the rise of cloud infrastructure, multi-jurisdictional operations and the expansion of the B2B supply chain.
The legislation also broadens regulatory oversight across the gambling ecosystem, particularly in fast-growing areas such as marketing. While Gibraltar has developed a strong reputation in gambling marketing services, some activities have previously fallen outside formal regulation.
Feetham warned that leaving such areas unchecked could pose risks. He said marketing and customer relationship management, “if unchecked and unregulated, have the capacity to damage the reputation of the industry and the wider regulatory regime.”
Improves Oversight and More Flexible Enforcement
The new regulation introduces a more sophisticated enforcement regime that replaced what Feetham described as the previous system’s reliance on “the nuclear option” of licence suspension.
Under the updated framework, regulators will have access to a wider range of proportionate sanctions, alongside enhanced investigative powers and a clearer statutory process. A new Gambling Appeals Tribunal will provide oversight and balance.
The legislation also sets out four key objectives: maintaining confidence in gambling markets, promoting fair and responsible gambling, preventing criminal activity, and safeguarding Gibraltar’s broader economic and reputational interests.
Built for Flexibility and Growth
Flexibility is among the core objectives of the reforms, as it would allow Gibraltar to adapt more quickly to new technologies and gambling models. The framework allows authorities to bring new activities within range or exclude them, depending on the risks that arise.
Feetham also discussed proposed changes that would exclude certain prize draws. This includes those that offer houses or cars, and allows Gibraltar to align with UK rules, potentially attracting new investment.
However, he stressed that the jurisdiction’s core approach remains mainly intact.
“If you are prepared to be a good corporate citizen, paying your taxes, protecting consumers and guarding against the facilitation of financial crime, then there is a welcome for you in the jurisdiction,” he said.
Cross-party Support Underscores Sector Importance
The legislation received backing from across the political spectrum. Opposition MP Roy Clinton noted there was “no political divide” on financial services and gaming, given their importance to Gibraltar’s economy.
Attention now turns to implementation, including a digitalisation project that will eventually allow licence applications to be submitted online.
Digital Assets Law Signals Broader Economic Strategy
Alongside the gambling reforms, Parliament also approved the Property (Digital Assets etc) Bill 2026, which recognises certain digital assets, including crypto-tokens, as personal property under Gibraltar law.
The move aligns Gibraltar with recent UK legislation and forms part of a broader effort to expand the territory’s digital economy.
“By staying at the cutting edge of legal frameworks and a responsive regulatory approach, Gibraltar can continue to meet the evolving needs of this fast-moving sector,” Feetham said.
Strengthening a Key Economic Vertical
Taken together, the new laws represent a strategic effort to future-proof one of Gibraltar’s most important industries while reducing reliance on a single market.
“What will not change is Gibraltar’s support for an important sector of the economy and a pragmatic approach to regulation,” Feetham concluded.
As Gibraltar positions itself for the next phase of growth, the message from lawmakers is clear: adapt quickly, diversify globally, and remain competitive in an increasingly complex regulatory landscape.
