A gambling license is a document that allows casino or bookmaker operators to work legally. Why is it so important? With a license, it becomes possible to use widespread payment systems, open and manage corporate bank accounts and buy official software. Operating without it is simply illegal and can lead to unpleasant legal consequences such as fines and even imprisonment. Last but not least: experienced gamblers do not trust unlicensed casinos. Thus, by saving on legalization, you can lose a lot of potential customers.
Gibraltar is a British territory located in Spain. It is a very prestigious jurisdiction with an unquestionable reputation. Moreover, state authorities do their best to promote the development of the Gibraltar gambling industry. Supporting measures include, among others, low taxes for online casino owners. Nonetheless, we should notice that the local licensing process is complicated and the expenses of obtaining the document are very high. Therefore, in order to legalize business in this country, you will have to make an effort.
Keep reading to know about the conditions, benefits and pitfalls of acquiring a Gibraltar permit.
Gambling legislation in Gibraltar
Gibraltar started licensing casinos back in 1998. To date, the main industry law is the Gambling Act, which has been in force since 2005. The Licensing Department is an authority, issuing licenses. The body strictly follows its own principle “keep crime out of gambling”. That’s why each potential licensee undergoes many serious checks in order to prove the transparency of the business and the honesty of intentions.
There is also the Gibraltar Gambling Commission, a body that oversees the activities of iGaming and offline operators.
Types of Gibraltar License
The Licensing Department offers B&C and B&B permits. Let’s consider what these documents are and who needs to get them.
These permits are intended for those who offer virtual and land-based gaming activities. There are 5 B&C options:
- Online gaming license (any casino games on the internet);
- Online bookmaking;
- Other iGaming services;
- Offline gaming (land-based casinos);
- Offline bookmaking (land-based bookmakers).
Unfortunately, there is no full permit in the jurisdiction. In order to provide several types of activities (online casino games and betting), operators have to acquire separate documents.
This type of license is issued to the developers of the software. Due to strict legislation, only legal games and programs can be used on iGaming platforms. Therefore, having a B&B permit is mandatory for every IT company in the sphere.
Requirements for getting a gaming license in Gibraltar
As we already mentioned, the Licensing Department is a strict censor that cares about its reputation. In order to convince the regulator of the trustworthiness of your enterprise, you need to provide full and up-to-date information about the entity, its funds and business goals. Moreover, it is important to prove your previous experience in the industry and the absence of a criminal record. Let’s list the main requirements for getting a Gibraltar gambling license.
- Applicants are obliged to provide identification documents and tell about their experience in the gambling sphere;
- It’s needed to prepare a detailed business plan;
- Confirmation of financial viability is also required;
- The company, office, and directors must be present in the country;
- Applicants have to provide evidence of the non-conviction of the owners and all key employees of the enterprise;
- Applicants should have a valid license in other location;
- Corporate bank accounts must be opened in the country;
- Gaming services must be certified and comply with the standards of the jurisdiction;
- All mandatory fees should be paid before submitting the application.
The procedure of obtaining a license in Gibraltar
The licensing process takes about 14-90 days. It depends on the type of permit chosen by the applicant and the specifics of each particular case. Anyway, a future Gibraltar gambling permit holder needs to go through a long and complicated procedure, which will include such stages as registering a company, checking equipment for the business, preparing and submitting the necessary documents, etc. There are a lot of reasons for the denial of a gaming license. To avoid it, be honest and attentive while applying.
To facilitate the process you can seek help from specialists. LicensingAid experts can accompany you during the whole application period providing the best license acquisition services. Our support includes assistance with preparing documents, legal advice, and solving all possible issues on your way to launching a project.
What are the benefits of a Gibraltar license?
Why are hundreds of gambling companies based in Gibraltar? This unique location has several significant advantages. Let’s list them.
- The Government supports the development of the industry and permanently improves Gibraltar online gambling regulations;
- Low taxation;
- The brilliant reputation of the jurisdiction, backed by the authority of the UK;
- The opportunity to provide different types of games both online and offline (but with separate licenses);
- Clearly defined and understandable prices;
- Few competitors;
- Long validity time (5 years).
Are there any disadvantages of a Gibraltar license?
- High Gibraltar gambling license cost;
- Lack of a universal permit covering all gaming activities;
- The acquisition procedure is complicated and bureaucratic.
How much does a Gibraltar license cost?
Despite the high cost of licensing in the jurisdiction, it is worth considering the fact that the document validity period is five years. Thus, during this period you do not have to pay renewal fees.
So, how much is a gambling license worth? The cost of it differs depending on the type of document. The acquisition fee for B2C operators is £100,000. B2B developers and software providers pay £85,000.
As we already mentioned, the tax policy in Gibraltar is affordable for most operators. Companies are required to pay income tax, the rate of which is only 1%. Wherein, the total amount of income must not exceed £425,000 or be less than £85,000 per year.
What are the Gibraltar online gambling license alternatives?
Not all countries offer casino licenses. However, fortunately, we have plenty of options to choose from. If the Gibraltar document is too expensive, or you are new to the industry, you can consider other locations. A good alternative would be Canadian Kahnawake or the Isle of Man licenses. The regulators of these locations are loyal to newcomers, in addition, the cost of obtaining licensing there is much lower than in Gibraltar.
To sum up all the above, the Gibraltar license is totally worth the effort. In addition, having enlisted legal assistance, you will surely be able to get it in the shortest possible time and without problems. Feel free to contact LicensingAid and get full support with the legalization procedure.
- Opening a bank account or a merchant bank account
- Assistance with legalization in the following jurisdictions: Malta, Isle of Man, Kahnawake, Costa Rica, Estonia and Gibraltar
- AML compliance
- Trademark and design consultancy
Are Gibraltar online casino laws loyal to operators?
The Government of the country supports the iGaming business and creates attractive conditions for its development. At the same time, they prefer to issue licenses to experienced operators, so newcomers should consider other locations.
Why is the Gibraltar license considered one of the best?
The local license has an impeccable reputation. In addition, it is issued for a long period (5 years). Add low taxes and get the formula for one of the best jurisdictions for a gaming business.
What is the final cost of the Gibraltar license?
The B&C application fee is £100,000, while the B&B one is £85,000.