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Gibraltar Working to Update its 2005 Gambling Act
By Jeff Osienya Jun 06, 2022 IndustryGibraltar is poised to revamp its gambling laws for the first time in 17 years. The government has already announced the issuance of a Parliamentary Draft addressing the proposed updates to its gambling industry regulations under the Gambling Act 2005.Gibraltar, one of the world’s most liberal gambling hubs, is gearing up for crucial changes to its gambling laws. This is the country’s first significant move to repeal gambling laws since 2005; thus, officials and legislators have now switched to high gear working on the regulatory repeal.
Inspired by the financial sector, the government has issued a Command Paper to initiate the reform process. Meanwhile, the Parliamentary Draft of the bill planned to replace the country’s 2005 Gambling Act has been published on the government’s website for public viewing. The proposals in the said bill are set to bring changes that the government believes will reflect the modern nature of the gambling trade and take care of the stakeholder interests.
Gibraltar, which is an English territory, first began plans to review its gambling laws six years ago. However, the efforts were initially hampered by Brexit and, more recently, the COVID pandemic. Although the existing regulations have served the country well, there is a widespread push to modernize the sector. The need for an upgrade was echoed by Albert Isola, the Gibraltar Minister for Digital and Financial Services, who said:
Quote“The current Gambling act has been long-lasting, but the nature of the sector has changed, and it needs to be modernized to ensure that Gibraltar remains one of the main gambling centers for companies increasingly operating in more jurisdictions.”
The Consultation Period Has Kicked Off
Intending to play catch up on an ever-changing sector, Gibraltar has opened room for its citizens to provide input on the new gambling laws. The Gaming Division of the government will thus contact the relevant stakeholders in the industry through workshops and direct representatives. The stakeholders will also be allowed to submit their proposals through written submissions that the Gaming Division will analyze.
The primary focus, of course, will be to ensure that the new regime of the gaming sector will be modern and innovative to make it suitable for the rapidly evolving sector. Upon deliberations with the industry, the Gambling Division will then be required to release guidelines on critical issues pertaining to the gambling industry in Gibraltar. Some of the main subjects under the microscope will include licensing framework for the operators, regulatory fees, and codes of conduct (e.g., social responsibility). Following the consultation period, the bill will then be introduced to parliament.
Revamped Licensing Regulations & Right to Appeal
Under the new laws, the licensing authority and industry oversight body will continue having distinct roles. Additionally, the revamped gambling regulations are poised to further stamp the requirement that all gambling establishments acquire licenses for a seamlessly working industry. As part of this move, it is expected that the bill will draw a clear line across activities that are deemed to be gambling activities and will thus require licensing.
The bill is also expected to outline the specific conditions that need to be met by operators so that they can qualify for licenses. It will further stipulate that the individuals responsible for specific roles inside casinos and other gambling venues will be required to obtain approval from the licensing authorities. On a similar wavelength to the licensing conditions, the new laws will cast a greater spotlight on shareholder control. As such, part of the regulatory framework in the revamped Gambling Act will address the intricacies of ownership control for licensed gambling operators.
The caveat to the shareholder control stipulation is that a right of appeal will counterweigh the said powers placed on the regulator in Gibraltar. The right to appeal will allow operators that feel hard done by the regulator’s rulings a chance to have another hearing. Currently, the law gives the Minister for Digital and Financial Services the authority to develop new regulations. Following the regulatory upgrade, The Commissioner will also be handed greater responsibility, for instance, handing out new social responsibility codes. However, the amount of power bestowed upon these two officially will somewhat be dampened by the right of appeal stipulation.
So, besides stricter enforcement of some rules like licensing, there’s also a flexibility aspect and, to a more significant extent, industry modernization. Not only is the gambling industry in Gibraltar headed towards a more structured environment, but from the sound of things, it also seems like it will have more transparency and fairness.
The Changes Spell an Exciting Future for Gibraltar’s Gambling Scene
When you look beneath all the substantive changes that have been proposed, one thing stands out – the changes are geared towards the greater good of Gibraltar. In a literal sense, specific clauses exist, such as the government requiring a local presence for licensees. The move is seen as the government protecting its own from foreign gambling operators who may just want to come in without having well-developed roots in Gibraltar.
Apart from the issues with licensing and regulation, the review also seeks to preserve the confidence in gambling markets, protect consumers, and ensure responsible gambling. All said and done, it will be interesting to see how the revamped Gibraltar regulations will compare to the ongoing overhaul of the UK Gambling Act.
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