If you want to open an online gaming company in Gibraltar, our specialists are here to help you during the entire process.
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How can I set up an online gaming company in Gibraltar?
To set up an online gaming company in Gibraltar, you should follow the steps below:
- Set up a local company, the most common being a private company limited by shares (Ltd.), with a reserved name, articles of association, shareholders, directors, and registered office in Gibraltar. In practice, the authorities prefer companies with a real presence and a clear operational structure, not simple “paper company” entities. In parallel, the business model must be defined: the type of games offered (online casino, sports betting, poker, etc.), the targeted markets, payment methods, technical providers, and the platform administration method.
- Preparing the licensing file and passing the due diligence process. The competent authority assesses the shareholders, the real beneficiaries, and the management team with respect to their reputations, industry experience, sources of funds, and financial capacity. At the same time, the company must demonstrate that it has sufficient resources to operate, pay out winnings, and maintain the activity in the long term. Technical documentation on the gaming platform, IT security, data protection, fraud prevention, and business continuity is also required.
- It is necessary to implement the full compliance framework and submit the official license application. It is very important that the company has Anti-Money Laundering/ Know Your Customer (AML/KYC) policies, responsible gambling measures (age verification, self-exclusion, deposit limits, protection of vulnerable players), and clear internal procedures. After analyzing the file, the authority, namely the Gambling Commissioner department of the Government of Gibraltar, may request additional information or interviews. If the license is approved, the company can start operating, but remains under continuous monitoring, periodic audits, and constant reporting obligations.
What licenses are necessary for online gaming in Gibraltar?
The following types of licenses can be issued under the Gibraltar Gaming Act:
- gaming operator license;
- gaming machine license;
- remote gambling license;
- lottery promoter license;
- pools promoter license;
- bookmaker license;
- betting intermediary license.
Although all the above types of licenses are provided for in the legislation, in practice, the authorities grant mainly licenses for remote gambling operators and online betting. Other types of licenses are less frequent or applicable in specific contexts.
What is the licensing process in Gibraltar?
The licensing process includes extensive checks on the gambling operator’s reputation (“fit-and-proper test”), shareholding structure, financial capacity, and technical conformity. The regulating authorities also review internal policies on the prevention of money laundering (AML – Anti-Money Laundering) and clients’ identification (KYC – Know Your Customer).
Additionally, the online gambling company must also fulfill certain requirements related to advertising and data protection. The gaming operators must follow the UK General Data Protection Regulation, applicable in Gibraltar post-Brexit, as well as the requirements on responsible gaming.
How is the online gaming industry regulated in Gibraltar?
The Gibraltar Regulatory Authority is the governing body supervising online gambling companies. The competent authority for licensing is the Gambling Commissioner of Gibraltar (GCG), which operates within the HM Government of Gibraltar, and it is the body responsible for issuing the online gaming licenses and for monitoring online gaming operators.
The main law referring to undertaking gaming activities is the Gambling Act issued in 2005, supplemented by subsequent legislation, and the Remote Gambling Regulation. The Act provides for the licenses that an online gambling operator must apply for before starting to operate.
Please watch our video on online gaming in Gibraltar:
How are online gaming activities taxed in Gibraltar?
Gibraltar uses a competitive tax regime, where gaming operators are taxed at approximately 1% of relevant turnover, but this regime is subject to minimum and maximum thresholds set by the tax legislation.
The tax is capped at 425,000 GBP per year, and the minimum amount to be paid has been established at 85,000 GBP. These taxes are maintained to ensure a minimum level of contribution, but also to limit the exposure of large operators.
In practice, online casinos’ taxation is based on the relevant income from gaming activity (similarly to the concept of GGR – Gross Gaming Revenue), not strictly on the gross turnover.
What accounting and tax obligations do online gaming companies have in Gibraltar?
Under the requirements of the Companies Act and the Consolidated Account Act, gaming companies are required to have their accounts audited every year and file their financial statements with the tax authorities. All accounting documents must be kept as required by law, and we use our certified accountant from Gibraltar’s standard practice for tax compliance and reporting.
Considering the complexity of the regulatory framework, for complete information about the legislation applicable to online gaming activities in Gibraltar, including for assessing eligibility and optimal corporate structure, do not hesitate to contact our company formation agents.