Gibraltar: A Dilemma of Point-of-Supply or Dual Licensing?

The Gibraltar gambling license is a highly respected and sought-after license issued by the Gibraltar Regulatory Authority (GRA) under the Gambling Act of 2005. Gibraltar, a British Overseas Territory located on the southern coast of Spain, has established itself as a reputable and well-regulated jurisdiction for online gambling. However, is facing a dilemma related to its regulatory framework for online gambling. The two main options being considered are Point-of-Supply (PoS) licensing or Dual Licensing.

Point-of-Supply (PoS) Licensing

Under this approach, Gibraltar would require all online gambling operators to obtain a license from the Gibraltar Licensing Authority (GLA) if they wish to offer their services to customers located in Gibraltar. This means that operators would need to have a physical presence in Gibraltar and be subject to its regulations, including paying taxes and meeting compliance requirements. This approach is similar to the current licensing regime in place in Gibraltar, where operators must obtain a license from the GLA in order to offer online gambling services to customers located in the UK.

Pros:

• Ensures that online gambling operators have a physical presence in Gibraltar, which could contribute to the local economy by generating jobs and tax revenue.
• Allows Gibraltar to maintain regulatory control over online gambling activities within its territory, ensuring compliance with its laws and regulations.
• May provide a higher level of consumer protection as operators would be subject to the local regulatory framework.

Cons:

• Could potentially limit the number of operators that choose to obtain a license in Gibraltar due to increased costs and requirements associated with a physical presence.
• May result in some operators relocating or withdrawing from Gibraltar, which could have an impact on the local economy and workforce.
• Could lead to regulatory complexities and challenges in enforcement, especially for operators based in other jurisdictions.

Dual Licensing

Under this approach, Gibraltar would continue to offer its current licensing regime, which allows online gambling operators to obtain a license from the GLA to offer their services to customers located in the UK, and also introduce a new licensing regime that would allow operators to obtain a separate license to offer their services to customers located in Gibraltar.

Pros:

• Provides flexibility for operators to choose the licensing regime that best suits their business needs and target markets.
• May attract a wider range of operators, including those who prefer to be regulated under Gibraltar’s framework but do not want to serve the UK market.
• Could potentially mitigate the risk of operators relocating or withdrawing from Gibraltar by providing an additional licensing option.

Cons:

• Could result in regulatory complexities and challenges in enforcement, as operators would need to comply with two different licensing regimes.
• May require additional resources and efforts from the Gibraltar authorities to manage and regulate two separate licensing regimes.
• May raise questions about the integrity and effectiveness of the regulatory framework if operators can choose between different licensing options.

In conclusion, the decision between Point-of-Supply (PoS) licensing and Dual Licensing in Gibraltar is a complex one that requires careful consideration of various factors, including the impact on the local economy, regulatory effectiveness, and consumer protection. It is important for Gibraltar authorities to thoroughly assess the pros and cons of each approach and engage in meaningful consultations with stakeholders before making a decision on the way forward.