Gambling license in Gibraltar

Gibraltar is a small country located on the Iberian Peninsula. It is an offshore zone under the control of Great Britain and it is a part of the European Union.

Gambling became popular here back in the 90s, when the country’s authorities began to issue licenses for online casinos. Despite the fact that this jurisdiction is quite demanding, the Gibraltar license provides a number of advantages to its holder.

Among them:

  • low and flexible taxes – as in other offshore regions;
  • high reputation of the license, as it is issued in the EU;
  • the opportunity to become part of the European market;
  • foreigners receive the same guarantees as local ones;
  • confidentiality of payment transactions;
  • the opportunity to get a Merchant Account.

Types of licenses

There are 4 types of licenses in Gibraltar. You can get several licenses at once, the main thing is to have legal grounds for all types of online and offline activities that you plan to provide.

You can apply for:

  • Casino games, which cover all types of games of chance: poker, slot machines, casino, etc.
  • Betting: sports competitions and horse racing. This license also includes betting by phone;
  • lotteries;
  • “Social” games.

As the owner of the company, you must also determine the direction of the business. You can provide services under a B2C license or a B2B license. The B2C segment involves servicing players. A B2B license is required if you plan to become part of the gambling market.

Requirements for obtaining a license:

  • First of all, the applicant must submit a brief plan (2-3 pages) of the company’s future activities, a business plan, personal information about each business partner/owner and employees, information about licenses issued in other countries, and proven gambling experience.
  • Secondly, the applicant must provide information on the financial condition of the economic entity (evidence of its solvency). The company must have a certain capital that will be used for player bets.
  • The applicant must ensure that all information is trustworthy.
  • The company must obtain personal information from players, including their full name, current address and date of birth. The willingness to comply with this rule should be reflected in the application.
  • An annual audit is required.
  • The presence of a real office in Gibraltar.
  • A bank account in Gibraltar.
  • Take measures to prevent access to the website for minors.
  • Full payment of the license fee.
  • The procedure for obtaining a license
  • The whole matter includes several stages.
  • Registration of a company in Gibraltar, appointment of a local company representative.
  • Development of a business plan, which includes business goals, information about all types of games that you plan to provide, a list of payment systems. Forecasts for the next 3 years.
  • Passing the inspection of trading equipment, obtaining approval.
  • Collection and submission of documents.
  • The procedure for obtaining a license can take from 14 to 90 days depending on the type of license and the number of licenses.

The package of documents includes:

  • names of the founders of the company;
  • a copy of the company’s charter and the owners’ decision on its registration;
  • copies of passports of founders and shareholders;
  • bank certificates with information about the availability of accounts and the availability of funds on them;
  • indication of the domain and website that you plan to use for profit;
  • positive audit results that indicate the high quality of the casino software;
  • recommendations of respected representatives of the financial system of a non-resident country.

The cost and validity of the license

The amount starts from 30,000 British pounds. The exact cost depends on the type of license. The license is issued for a period of 5 years, the subsequent annual renewal is about $28,000.

Taxation of gambling in Gibraltar

Despite the strict requirements, Gibraltar is an attractive jurisdiction in terms of gambling taxation. The gambling tax here is only 0.15% of the revenue. In addition, there is no value added tax in this country.

B2B license holders must pay £100,000 per year as a license fee. B2C license holders must pay £75,000 per year as a license fee.

Eternity Law International will be happy to assist you with your gambling license in Gibraltar, and our specialists will answer all your questions. Take advantage of our many years of practical experience – save your time and your money.

B2B licensing in the field of gambling

The Managing Partner of Solex Group spoke about the peculiarities of the licensing procedure for the provision of services in the field of gambling, the requirements for the company and the cost of the license. The expert also assessed the introduction of this type of license in the gambling market.

Which companies fall under the definition of those that must obtain a B2B gambling license? How much will such a permit cost?

In accordance with the provisions of Article of the Law “On State Regulation of Activities related to the Organization and Conduct of Gambling” (hereinafter – the Law), business entities that provide services for the supply and/or provision of software directly used in the organization and conduct of gambling must obtain the appropriate license. Traditionally, this type of license is called B2B (unofficially), and it must be obtained by gambling software developers for further sale of the product. Accordingly, the B2C license directly concerns the organization of gambling.

Such a license is issued for a period of 5 years and provides for the payment of a license fee of 300 minimum wages (UAH 1.8 million).

Do the licensing requirements provide for any special compliance conditions for the licensee company?

Unlike gambling organizers (or operators), the licensing requirements for companies providing software services are less stringent. A B2B license can be obtained only by a company that is a resident of country. According to the licensing requirements for gambling software developers, which were adopted by the Cabinet of Ministers, an applicant for a B2B license and its officials cannot belong to the sanctions lists, be residents of states that carry out armed aggression against Ukraine, have a criminal record and must have an impeccable business reputation.

Compared to the licensing requirements for B2C licenses, there are no requirements for KVEDs or minimum authorized capital for B2B license applicants. And, accordingly, the license fee is significantly lower than the fee to be paid by the future operator.

How widespread is the practice of licensing companies that provide services in the gambling business in the world?

Licensing of gambling software providers is a mandatory requirement for any country where the gambling industry is developed in one way or another. For example, such licenses are widespread in such countries as Malta, Curacao, Romania or the Isle of Man. The licensing requirements for providers are primarily due to the fact that the gambling business is characterized by a high level of risk, so even the development of gambling software should be under state supervision.

How exactly will the relationship between the operator and the company that provides services to him be regulated?

First of all, it should be noted that licensing is required for the supply of software in the field of gambling. From a legal point of view, we have a classic situation with the development and further implementation of the software code. Accordingly, the transfer of ownership or other property rights takes place within the framework of licensing agreements concluded between the software developer and the operator regarding a specific code.

What documents should be submitted to KRAIL to obtain such a license? Do you see any potential difficulties in the licensing process?

To obtain a B2B license, the applicant must submit to KRAIL a package of documents containing an application for a license, certified copies of constituent documents, a document confirming the authority of the applicant’s representative, identification documents of the head, accountant and founders, detailed information on the ownership structure of the applicant with the disclosure of ultimate beneficiaries. The Commission decides to issue or refuse to issue licenses within 15 days from the date of acceptance of the application for a license.

As already mentioned, the requirements for obtaining a B2B license are less stringent than for a B2C license, which can be seen even in the list of documents for obtaining a license. However, this does not mean that licensing does not have any pitfalls. In matters of obtaining licenses, it is very important to correctly prepare a package of necessary documents. Proper preparation of documents directly affects the whole process.

What impact will such a license have on the IT sector

In general, the IT industry is the most dynamically developing sector of the economy. Among domestic IT companies, there is a fairly large number of those that directly or indirectly develop gambling software. Now the situation has changed – and such companies have the opportunity to work in the domestic market. And given the general legalization of gambling and the number of licenses already issued, the demand for the services of B2B providers will undoubtedly be.

Does this license encourage foreign companies to open new representative offices in Ukraine?

Of course, it does. There are a large number of well-known companies in the world that develop specialized software for gambling operators. Thanks to the adopted Law, such foreign providers were able to enter the Ukrainian market, which is developing very actively. The approved licensing requirements for the B2B sector provide for the possibility of foreign companies entering the Ukrainian market. Therefore, the opening of representative offices of foreign companies in Ukraine is a matter of time.