Gibraltar is seeking to adopt a “tiered” system for licensing and classifying online gambling businesses under proposed amendments to the country’s gambling laws. The changes will apply to both B2C and B2B operators and the government is conducting a consultation on the matter.
New Application Fees for B2C and B2B Businesses
The Bill, once approved, will effectively update the Gibraltar Gambling Act and set new application fees and annual licensing fees for online gambling operators. Under the proposal, B2C businesses will pay £30,000 upon applying for a license.
License application fees for B2B suppliers sit at £10,000 for Direct Software Services, and £20,000 for content aggregators.
Tiered System for Annual Licensing Fees
Annual license fees for B2C operators will be based on their gross gambling yield (GGY) which is split into three tiers. Businesses generating less than £20 million in annual GGY will pay £50,000, while those generating more than £100 million in yearly GGY will be charged £100,000. B2C businesses whose annual GGY exceeds £300 million will pay an annual licensing fee of £200,000.
For B2B operators, annual licensing fees vary according to the type of service offered which are categorized into three – Aggregator (basic annual fee of £85,000), Direct Licensing/Software Services (fees range from £20,000 to £85,000 per year), and Platform Providers (basic annual fee of £85,000).