Gibraltar - Casino Gaming Licensing and Regulatory Landscape
Introduction
Gibraltar is located at the tip of the Iberian Peninsula. It is next to Spain and is a British Overseas Territory. The island is also home to around 32,000 people.
Gibraltar began issuing casino licenses in 1998. Since 2005, the Gibraltar Regulatory Authority has managed the process and the Gambling Commissioner assigns its authority. The territory offers licenses to online operators looking to license their gambling businesses. As a result, it provides the perfect mix of no VAT, low taxes, and plenty of available workers. Some betting sites with a GRA license include Betvictor, Parimatch, Kwiff, and Energybet.
The GRA license covers Sports, eSports, Poker, Horse racing, Bingo, and even telephone betting. In addition, licenses are available for both remote betting and land-based operations. There are many reasons why Gibraltar is home to numerous companies. These include the technology, telecommunication, and media industries locally and internationally. It consists of a vital communications infrastructure, business-friendly government, competitive taxation, and a qualified workforce. Also, the jurisdiction holds close ties to the UK, US, Europe, Israel, Asia, and some other significant start-up hubs.
Advantages of a Gibraltar Gaming license
The bottom line, however, is that what matters is money. A Gibraltar-based company only pays 10% corporation tax. And only 0.15% of its gross gambling yield goes to the government. So it makes it an advantageous proposition for companies based there that operate online businesses. As a result, around 75% of UK betting activity gets conducted from Gibraltar.
Downsides of a Gibraltar Gaming License
A Gibraltar gaming license can be complicated and time-consuming. First, the jurisdiction is very selective about whom it will accept. The operator will also need to be fully compliant and follow all processes. Secondly, the license is very costly. In addition, if businesses need two licenses, they must pay separately for both.
What does a GRA license means for players?
Any online gaming site with a GRA license also has to keep its players' funds separate. Similarly, they also make the customer's funds available at any time. In addition, all the games offered get regularly tested to ensure legitimacy and fairness. Finally, each company must also abide by the stringent list of rules and standards laid out by the GRA.
Five crucial objectives form part of the Gibraltar gambling regulation law. These include:
Preserving consumer confidence
Protecting customers and vulnerable groups
Promoting "fair and responsible" gambling
Preventing crime linked to gambling
Protecting Gibraltar's standing and public interest
The only critique we could find was that they sometimes side with casinos. They can withhold players' funds if they believe there is bonus abuse. First, the reasons for bonus abuse could be that the casino believes the player has signed up and created an account, not in good faith. The reasoning behind this is that they think they had participated in the welcome offers with no intention of becoming a returning player, and is a professional gambler.
Setting up a GRA license
The license offered to gaming establishments from the GRA will cover all their gambling activities for five years. Setting up a gaming company is easy if everything gets handled correctly. As a first step, new gambling sites must obtain a gambling license. Businesses can only achieve this after they present a 'complete and sound business model' to the Gaming Regulator. Then, the GRA will conduct due diligence on shareholders and directors to ensure everything is in order. Finally, operators must ensure they follow all the rules and regulations and remain compliant.
The Gibraltar Gambling Commission has rigorous conditions to obtain permission. It even includes a full screening of applicants. Doing this ensures the companies will provide a first-class service and that all the players are protected. GRA will, therefore, only put their licenses behind reputable and honest companies. Their reputation in the online gaming world is renowned for being one of the best licenses you can obtain. Likewise, players are offered excellent protection when gambling at any casino with a GRA license.
License requirements
A company must meet various requirements and be fully compliant to apply for a license. These requirements must be strictly adhered to receive the license.
Conditions that businesses need to meet are:
Be able to demonstrate solid financial accounts.
A sensible business plan with descriptions of goals and objectives.
Keeping within acceptable advertising policies.
Proper management of the company's head office in Gibraltar.
Adequate funds to payout customers.
Keeping within the rules as set out in the Gambling Act.
Yearly submission of the company's financial declarations, taxation returns, and other requested documents.
License Types
Businesses can apply for various licenses depending on what the establishment offers. The following are the different types of licenses that operators can obtain:
Betting providers license
Betting agents license
Operators of games of chance license
Provision of gaming machines license
Lotteries license
Pool promoters license
Remote gambling license
Obligations of GRA license holders
To be granted a GRA license, holders must have an adequate presence in the territory. In addition, strict rules and regulations bind any company with a GRA license. These include publicising the rules and not allowing under 18-year-olds to gamble. The procedures are robust with internal controls:
Banking systems that are approved and safe.
An effective complaints procedure.
To pay the gaming taxes, fees, and any charges.
Lastly, any site that holds a GRA license needs to maintain an audit trail of each of its players. It must include deposits and withdrawals and any bets placed or wagers made for five years.
Conclusion
Gibraltar has become a haven for betting businesses. The more gambling sites that have based themselves there, the bigger the requests for new license holders. A reason is that Gibraltar Gambling licenses are highly esteemed. And worth the money it costs to set them up. So any gaming site with one of these prestigious licenses will be considered a successful and safe bet. Likewise, any gambler who is looking for a new site to play will know that the GRA license will offer them protection.