Gibraltar Gambling License
Gibraltar is recognised worldwide as an offshore financial centre. The country is situated on the tip of the Iberian Peninsula, north of Morocco and south of Spain. Gibraltar is a self-governing British Crown Dependency; the UK is responsible solely for the external relations and foreign affairs of the territory. Gibraltar is a full member of European Union and it retains complete independence from the UK in matters of taxation.
Gibraltar is modern and highly developed European offshore financial centre, with British Pound Sterling as the official currency.
Gibraltar Online Gambling License
All gaming operations in Gibraltar require licensing under the Gambling Act 2005. Remote Gambling licences, including those for telephone and internet betting, are issued by the Licensing Authority.
The Gibraltar Regulatory Authority, in turn, is the Gambling Commissioner under the provisions of the Gambling Act 2005. The Act grants the Gambling Commissioner powers to ensure that licensees conduct their operations in accordance with their licences and in such a manner as to maintain the good reputation of Gibraltar
Overview
The Licensing Authority will only consider licensing blue chip companies with a proven track record in gaming, licensed in a reputable jurisdiction, of good financial standing and with a realistic business plan.
Regulation and transparency are vital to Gibraltar’s drive to consolidate itself as a leading jurisdiction for e-gaming and e-commerce companies. This led to widespread recognition amongst professionals in the sector that Gibraltar needed a modernised legislative framework to replace the Gaming Ordinance 1958. After a lengthy consultation process involving the Government of Gibraltar and the industry, the Gambling Act 2005 was enacted and came into force on the 26th October 2006 replacing the former regime. The Gambling Act 2005 builds on the pragmatic approach to regulation Gibraltar has adopted over the years. It provides a new and streamlined application, licensing and regulatory framework for Gibraltar’s well established and fast growing e-gaming business sector. The Gambling Act 2005 makes specific provision for the modern requirements of online/remote gambling, betting and gaming, striking a fair balance between efforts to further regulate the gaming industry and the need to respond rapidly to a highly competitive and fast moving international e-business environment.
To further complement this, the Electronic Commerce Directive was transposed into Gibraltar law as the Electronic Commerce Act 2001. Although the Directive does not apply to gaming, this exclusion was not followed by the Gibraltar legislature thereby allowing Gibraltar based e-gaming companies to benefit directly from its provisions. Essentially this means that clients of e-gaming companies operating from Gibraltar may rely on the statutory protection afforded by the Electronic Commerce Act 2001 in addition to that provided by inter alia, the Data Protection Act, Intellectual Property (Copyright & Related Rights) Act 2005 and the Gambling Act 2005.
Gibraltar is therefore well suited to deal with today’s regulatory climate as the only UK overseas territory that is part of the EU and this has been recently recognised by the UK’s Gambling Act 2005 which acknowledged the fact that Gibraltar is part of the European Economic Area (EEA) for the purposes of the UK’s new Gambling legislation.
Taxes
One of the key considerations for remote and land based gaming and gambling operators is compliance with requirements to pay gaming tax and income tax. ISOLAS can assist companies in their compliance efforts and offer suggestions for structures to legally minimise taxation.
Gibraltar primarily licenses operators with a proven track record and requires software testing as part of the process. There are no start-up licensing fees, but there is an annual fee of £2,000.
The tax rate for fixed-odds and betting exchange operations is 1% of turnover with the gaming tax capped at GPB 425,000 per year. For Internet casinos, the gaming tax is at 1% of the gross product with the same maximum cap as fixed-odds betting.
The Gibraltar non-resident companies enjoy no-tax status. They do not fall under the Gibraltar tax system and should not be registered for taxation purposes. The non-resident company does not pay capital gains taxes, estate taxes, gift taxes, wealth taxes or VAT. Gibraltar non-resident company is the most effective European offshore vehicle which is suitable for most kinds of offshore trading and investment activities, particularly those conducted in Europe.