The Gibraltar Parliament approved a new gambling law on Wednesday that seeks to update the ageing framework by giving the jurisdiction greater flexibility to compete in the international market. Among its key provisions, the legislation redirects regulatory focus toward where gambling operations are managed and controlled.
The legislation moves away from reliance on the location of technology infrastructure and instead targets where substantive decision-making takes place. Minister for Justice, Trade and Industry Nigel Feetham said this approach is intended to bring into scope businesses with a real operational presence in Gibraltar.
He said the previous framework, while “remarkably flexible and robust,” had become stretched following structural changes in the sector.
Market developments driving legislative changes
Feetham told Parliament the market has evolved, citing the migration of EU gambling business away from Gibraltar after Brexit, the use of cloud systems, multi-jurisdictional operating models, and a more crowded B2B supply chain.
The legislation was developed over several years with consultation, he said, and extends oversight across the supply chain, including marketing. Some of this activity currently sits outside formal regulation.
He warned that the promotion of gambling products and customer relationship management could, “if unchecked and unregulated, damage the reputation of the industry and the wider regulatory regime.”
Regulatory objectives with enforcement structure
The law sets four objectives: maintaining confidence in gambling markets; promoting fair and responsible gambling; preventing criminal and financial crime; and protecting Gibraltar’s public interest, including its economic position.
It defines industry terms, clarifies the roles of the Gambling Commissioner and the minister as licensing authority, and sets licensing conditions tied to operational presence. It also introduces provisions for regulating individuals in designated roles.
Evidence-gathering powers are codified alongside additional enforcement tools. Feetham said the current framework effectively offers only “the nuclear option” of license suspension or revocation.
The new law introduces a range of proportionate sanctions and a structured statutory process for investigations and inquiries. A Gambling Appeals Tribunal will review decisions.
Flexibility within regulatory scope
The legislation allows adjustments to regulatory scope in response to technological developments and new gambling models. Activities can be included or excluded where appropriate.
Feetham cited proposed amendments that would exclude free prize draws for houses or cars from gambling regulation, aligning with UK law and allowing such companies to consider Gibraltar as a base. He said the authority to regulate different models would remain in place where needed.
The legislation comes during pressure linked to changes in the UK, which accounts for about 75% of gross revenues in Gibraltar’s gambling sector.
The sector has remained resilient despite “documented headwinds,” said Feetham, including increased UK online gaming duties, though these have added pressure on operators and increased the need for diversification.
“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,” he said.
Licensing pipeline with implementation plans
Feetham said he attended ICE in Barcelona in January, where he met potential investors, and expects a license application will “shortly be submitted” to the Gambling Commissioner.
He also attended Consensus Hong Kong, described as a leading digital asset conference in Asia, and said Gibraltar is working with interested parties there with a view to licensing them locally.
The government is seeking new revenue streams and new entrants as operators adjust to conditions in the UK market.
“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.
He said attention will now shift to transition and implementation, including a digitalization project that will allow license applications to be submitted online.
“What will not change is Gibraltar’s support for an important sector of the economy and a pragmatic approach to regulation,” he said.
The legislation received support from the opposition Gibraltar Social Democrats, with MP Roy Clinton saying there was “no political divide” on financial services and gaming.
Digital assets law framework introduced
Parliament also passed the Property (Digital Assets etc) Bill 2026, allowing certain digital assets, including crypto-tokens, to be recognized as personal property under Gibraltar law.
The measure follows equivalent UK legislation that came into force on December 2, 2025, after a Law Commission review concluded some digital assets should carry property rights. The law does not define every type of digital asset, leaving further development to the courts.
Original article: https://www.yogonet.com/international/news/2026/03/19/118149-gibraltar-shifts-gambling-oversight-toward-operational-control-with-new-law
