Gibraltar’s long-awaited overhaul of its gambling laws has officially begun its journey through parliament, marking a significant step toward modernising how the British Overseas Territory licenses, regulates, and oversees gambling operators.
The 2025 Gambling Bill successfully passed its first reading today and will now progress to the next phase.
Should it clear the Committee stage and third reading, the legislation will be sent for Crown approval, ultimately replacing the territory’s existing 2005 Gambling Act.
First introduced in June 2025, the bill is designed to update regulatory standards and reshape the operational framework established under the 2005 legislation, widely regarded as a pioneering model for online gambling regulation across the UK and Europe.
Development of the bill has been ongoing for several years, with initial consultations dating back to May 2022.
It also underwent key revisions to comply with Financial Action Task Force (FATF) requirements, which removed Gibraltar from the Moneyval grey list in February 2024.
The legislation was formally tabled amid heightened debate over gambling taxation in the UK, particularly in the lead-up to the Autumn Budget in November 2025.
Industry stakeholders, including Gambling Commissioner Andrew Lyman, raised concerns about the potential economic impact of UK tax increases on Gibraltar, given the high number of UK-facing operators licensed there.
“We are working intensely and at pace to bridge as far as possible the gap created by the recent UK tax decision,” said Nigel Feetham KC MP, Minister for Trade, Justice and Industry, during today’s session.
“Whilst the corporate tax revenues, because of the UK tax changes, cannot be fully restored by the end of this year, through new entrants alone, the ongoing growth of the sector will create important future revenue streams.”
Gibraltar’s government is aiming to build its updated gambling regime around two main pillars: economic integrity and technical advancement.
On the economic side, the reforms will broaden licensing across the full gambling value chain while increasing accountability for senior executives, who will be required to hold personal licences.
From a technical standpoint, the bill seeks to strengthen the powers of the Gibraltar Gambling Commission (GGC), introducing more robust investigative capabilities, risk-based enforcement, and stricter penalties for non-compliance.
Earlier this year, Lyman noted that the new legislation would help diversify Gibraltar’s gambling sector beyond its reliance on UK licences.
Despite opposing the UK’s planned increase in Remote Gaming Duty to 40% starting in April, he made it clear that Gibraltar does not plan to scale back its role in the global market.
In parliament, Feetham emphasised that the bill is intended to reinforce trust in the gambling sector, ensure fair and safe practices, prevent criminal misuse, and serve the broader public interest of Gibraltar.
He also reaffirmed that the 2005 Act has been effective in supporting economic growth, safeguarding consumers, and maintaining Gibraltar’s reputation.
However, recent tax changes in the UK, introduced by Chancellor Rachel Reeves, have accelerated the need for legislative reform.
Key proposals in the new bill include expanded regulation of B2B activities such as marketing services, the introduction of new licence categories with broader scope, and enhanced enforcement powers for the Gambling Commissioner.
The reforms will also establish a dedicated tribunal to handle sanctions appeals.
Feetham concluded that Gibraltar’s gambling sector has achieved “internationally recognised success,” and that the updated framework is intended to ensure this continues “in an ever-changing environment with an enhanced and more flexible regime.”