Gibraltar – the rock with a big gambling role
Gibraltar, often known as The Rock, is likely on the radar of a good number of slots fans, but many will be unclear exactly as to the connection between gambling and this tiny territory that sits at the bottom of Spain just above Morocco. The Rock has evolved into a significant foothold for many casinos and gambling-adjacent companies, but why Gibraltar, and what does this mean?
At Slot Gods, we have our finger on the pulse of the global gambling industry, keeping track of international iGaming dynamics. Here, we’ll be exploring the Gibraltar-gambling connection, how it became a modern gambling hub, and its impact on casinos and players all around the world.
A bit about Gibraltar
Gibraltar is both geographically and economically impressive. Being a port city, it also has strategic significance, having been occupied by various countries over the centuries. Gibraltar has been a British Overseas Territory since the early 1700s. Its unique global and political position has enabled it to flourish, despite its size.
Gibraltar covers a total area of just 6.8 sq km. (By comparison Amsterdam covers 219 sq km.) In terms of demographics, Gibraltar is predominantly Roman Catholic, but there are also Anglican, Muslim, Hindu, and Jewish communities. Its population is made up of a diverse range of ethnicities, but most are of Spanish or British origin. The official language is English, though many living there speak Spanish too.
Despite being home to around just 32,000 permanent residents, Gibraltar is one of the most densely populated places on the planet. It boasts a high quality of life, as well as a healthy economy, largely thanks to tourism, being a port city, and, of course, gambling.
Gambling in Gibraltar
Gibraltar has strong ties with Britain and it has been estimated “that at least 75% of UK online betting takes place in or from Gibraltar”. Remarkably, also, gambling contributes around 25% of Gibraltar’s GDP, employing more than 3,600 permanent workers.
Since the 1990s, when online gambling began to take off, increasing numbers of the big brands have been making Gibraltar their home. At this time, countries that moved quickly and were willing to offer international licences and tax breaks positioned themselves to benefit for decades to come.
It’s not just the sunshine and sea breeze that draw companies here. For such a tiny region, a remarkable number of gambling companies are based in Gibraltar, and there are several very good reasons for this.
Easy to set up
The legal systems of Gibraltar offer a clear and fair framework for new operators to follow. Despite the rules being fairly similar to that of the UK, there are far fewer obstacles to navigate when setting up a gambling business. This includes complying with licensing regulations.
Accessible licences
There are two distinct legal entities responsible for regulation in Gibraltar. The minister responsible for gambling has the role of issuing licences in accordance with Gibraltar’s Gambling Act 2005. After that, operators are in the hands of the Gambling Commissioner, whose team ensures compliance and maintains standards. The Minister and Commissioner, and their respective teams, work closely together.
A gambling licence from the minister responsible for gambling can gain an operator access to many international markets. It’s highly regarded, and more attainable than a UK Gambling Commission licence, with less strict requirements.
Tax incentives
Corporation tax is just 12.5% in Gibraltar, making it something, almost, of a ‘tax haven’ compared to some other countries. Also, there’s a Gaming Duty of 0.15% of all operators’ gross yields, with a minimum annual payment of £85,000, but this is a fairly insignificant sum for most operators.
Access to EU and UK
Despite things being shaken up by Brexit, Gibraltar and the UK have maintained a close relationship, and many Gibraltar-licensed sites operate in Britain. As the UK is also a major gambling market, companies in Gibraltar can benefit from the close political ties by being based there. The same goes for various other markets around the world.
Prospects
The future looks bright for Gibraltar’s gambling industry, fuelled by the rising popularity of e-sports, mobile gambling and sports betting. Globally, the gambling industry is growing, and this boon is likely to be felt most strongly in gambling hubs like Gibraltar, Malta and Curaçao. These regions appear set to continue reaping the rewards of their respective gambling-friendly governments’ economic strategies.
Key industry players in Gibraltar
As more gambling companies set up in Gibraltar, it draws others to do the same, creating a feedback loop. The more gambling and gambling-related companies in one area, the better the infrastructure is for them, and the more attractive it is to new ones. Gibraltar is now home to a wide, varied network of gambling organisations. Even Betfred, the British giant, has a base in Gibraltar, having been one of the first big companies to make the move. Other notable industry players with a Gibraltar hub include BV Gaming, 32 Red, Gamesys and PragmaticPlay.
Land-based
Land-based gambling operations are required to be licensed in a similar way. While Gibraltar is a popular destination for gambling tourists, don't expect anything resembling Vegas – there are actually very few land-based casinos there. The most notable is the Casino Admiral Gibraltar. This is simply because the territory is so small. Land-based gambling is alive in Gibraltar, but massively overshadowed by The Rock’s role in online gambling.
Software Developers
Developers also require licences, and they benefit from being based in close proximity to the casinos they work with. For instance, the Ukrainian game developer Spribe, which is the company behind the smash hit Aviator crash game, has a Gibraltar Gambling Commissioner licence. Similarly, Relax Gaming and Skywind have offices all around the world, including in Gibraltar.
Others
The presence of gambling operators draws other gambling-related firms to Gibraltar, including those offering legal services, tech support, auditing and more. Plus, of course, there’s the Gibraltar Gambling Commissioner itself, which makes the whole Gibraltarian gambling industry safe and viable.
Summary
Gibraltar, a densely-packed little region at the bottom of Spain, has carved out a big slice of the global gambling industry for itself. There are various incentives for gambling companies to operate from here, and money flows in from around the world. Gibraltar offers operators a respectable licence, a reliable infrastructure, and a skilled workforce. Operators return the favour, with gambling making up a major proportion of Gibraltar’s GDP. Similarly to Malta, Gibraltar is a testament to what can be achieved when governments are willing to embrace and work alongside industries like gambling.