Gibraltar Gambling Bill Passes First Reading in Parliament

Gibraltar’s parliament has taken the first formal step toward rewriting its gambling laws. The Gibraltar Gambling Bill cleared its first reading on March 18, passing unanimously without political opposition. The legislation now moves through a second reading, a Committee stage, and a third reading before heading to the Crown for assent. If it clears every stage, it will replace the territory’s 2005 Gambling Act entirely.

A Framework Built for a Different Era

The 2005 Act was genuinely groundbreaking when it came into force. It helped establish online gambling regulation for the UK and European market at a time when the industry was still finding its footing. But two decades later, the framework no longer reflects how the sector operates. Businesses have grown more complex, the supply chain has expanded well beyond direct operators, and the regulatory environment has shifted dramatically.

Gibraltar began consulting on a replacement in May 2022. The Gibraltar Gambling Bill was formally introduced in June 2025 after three years of preparation, and its first reading marks the start of its journey through parliament. Minister for Justice, Trade and Industry Nigel Feetham KC described it as one of the most carefully considered bills in the territory’s parliamentary history.

UK Tax Pressure Is Sharpening the Urgency

The bill’s timing is not a coincidence. The UK is raising Remote Gaming Duty from 21% to 40% on April 1, 2026, with General Betting Duty set to climb from 15% to 25% from April 2027. These increases hit Gibraltar hard. The UK market accounts for around 75% of gross revenues in the territory’s gambling sector. Gambling itself contributes roughly 30% of Gibraltar’s GDP and generates about one-third of all tax receipts.

Feetham addressed the pressure directly in parliament. “We are working intensely and at pace to bridge as far as possible the gap created by the recent UK tax decision,” he said. He acknowledged that new market entrants alone will not fully restore corporate tax revenues by the end of this year. But he also stressed that ongoing sector growth will build important future revenue streams.

The Gambling Commissioner has been instructed to identify non-UK market opportunities. Gibraltar is not retreating from global gambling. It is repositioning for it.

What the Gibraltar Gambling Bill Actually Changes

The new legislation is broader in scope than the framework it replaces. It covers the full gambling supply chain rather than focusing narrowly on direct operators. Marketing services, CRM providers, software suppliers, platform services, and other key verticals will all fall within its regulatory reach for the first time.

New and expanded licence types will reflect how the market actually works today. The bill also introduces a requirement for businesses to demonstrate a “sufficient substantive presence” in Gibraltar. That means real staffing, genuine infrastructure, and actual tax contributions. Shell arrangements will not meet the bar.

Senior personnel at licensed firms will face closer scrutiny. Some individuals will be designated as “regulated individuals,” creating a layer of personal accountability inside licensed businesses. Existing operators will receive a six-month transition window after the law takes effect, giving them time to apply under the new system without interruption.

Stronger Tools for the Regulator

The Gibraltar Gambling Commissioner gains meaningful new powers under the bill. Enforcement and sanctioning capabilities are enhanced, and the Commissioner will have greater authority to demand information and act against non-compliant companies. A new Gambling Appeals Tribunal will also give licensed operators a formal route to challenge regulatory decisions.

The legislation is also partly shaped by compliance requirements from the Financial Action Task Force. Gibraltar’s removal from the FATF Moneyval grey list required structural improvements to its anti-money laundering and financial crime prevention frameworks. The bill addresses those obligations directly alongside its commercial objectives.

Cross-Party Support and What Comes Next

The bill passed without a single vote against it. Opposition MP Roy Clinton confirmed there is no political divide between government and opposition on financial services and gaming, given how central both are to Gibraltar’s economy. That unanimous backing removes one significant variable from the bill’s path forward.

The Gibraltar Gambling Bill still has several stages to clear before it becomes law. A second reading, a detailed Committee review, and a final vote all lie ahead. If it passes those stages, it goes to the Crown for assent and then comes into force. The government is moving at pace. With the UK tax increases landing in a matter of days, Gibraltar does not have the luxury of waiting.