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Gibraltar as a territory has been providing gambling licenses way back since 1998. This process is one that has been overtaken by the then Gibraltar Regulatory Authority, now known as the Gibraltar Gaming Commission. In turn, this has resulted in the territory gaining a strong reputation as a stable base for online gaming operators and companies. The attractiveness of a Gibralter Gambling Commission licence is also aided by its incredible combination of no VAT policy, low tax rates, and a surplus of good workers. When it first started providing licenses to online gambling operators, it was relatively unknown but has over the years and with legislation (such as the 2005 Gambling Act) solidified a reputation as one of the best regulatory bodies worldwide. This is no doubt thanks to its insistence on fairness and integrity checks on the software used by every one of its licensees. A stance which reinforced with its impeccable history on ethical business practices.
What Does it Do?
The Gibraltar Gaming Commission has just one license available per year. Online casino operators can get their license for a cost of around £2000 and are liable for a 1% tax rate ranging from the minimum of £425,000 to the maximum of £42.5m. These fees may seem high, but they are are appealing some of the major online casinos compared to other regulatory authorities. It also enables the GCC to maintain extremely stringent requirements for those that apply for a license, thereby increasing its already remarkable reputation in the online gaming regulatory industry. It also does this by ensuring the player protection is paramount, and the online casino operators are subject to the highest standards.
The Gibraltar Gambling has in its list of clients a significant portion of the more renowned and reputable gambling firms that operate online today.
What Protections From this Commission can Players Expect?
For online casino operators wishing to gain and maintain a license from the GCC a number of conditions that must be met, in addition to the payment of several annual fees. To protect players, it demands the following from its licensees and potential licensees to ensure that players can be sure of not falling victim to a rogue online casino operator.
First of all, the licensed companies are required to be situated in and managed from Gibraltar. To enforce this requirement, the GCC states that certain key personnel must be available on demand. The online casinos are required to pay a tax that is around 1% of gross profit. Casinos must not encourage or conduct marketing activities to underage players. Furthermore, Players who reside in nations or jurisdictions where online gaming is barred cannot receive marketing and promotional material.
The marketing items given to responsible players must contain accurate information on the games, the prizes, and any other information pertinent to the online casino. The licensees are required to have bank accounts located in Gibraltar unless not permitted not to, and every year during the license renewal, firms are required to present financial transactions that have been audited. GCC also ensures that its licensees have the necessary capital to cover player payouts and operating expenses at all times, so no issue should arise when players request the payout of their wins.
All software used for gaming by the GCC’s licensees must have been independently tested to certify dependability and fairness. To aid this process, the GCC has a list of approved testing organisations. For a potential player to begin playing, the licensee has to first obtain pertinent information like birthdate, full name and residence. The GCC also requires the licensee to store this information, in addition to financial information of their clients safely.
How Does it Rate Compared with other Authorities
We give the GGC a 9/10
One of the many advantages to be had from licensing in this jurisdiction is Gibraltar’s tax rate. The tax rate for gambling business is a small rate of only 1% of revenues. Additionally, the highest rate that can be paid is capped. For sure, this is a very competitive rate for any operator that receives substantial revenues. The license granted by the Gibraltar Gaming Commission has an elite status within the online gambling industry. New young startups and companies with scrupulous reputations alike will find it extremely difficult to get a license from this regulatory body. As the list of requirements that must be met are substantial, this translates to only established and experienced online gaming industry stalwarts can gain the revered status that a license from this jurisdiction brings. A couple of other advantages apart good tax rates include massive guarantees from the government, a reliable legal framework, and the opportunity for license holders to operate a merchant account. Gibraltar is in most circles considered to be the best offshore location for online gambling activity as the legal framework is one that corresponds to a contemporary level while contributing to the development of gambling. It also doesn’t hurt that Gibraltar has a steady political climate in addition to straightforward banking laws which makes this an attractive regulatory jurisdiction over others
Can a Casino License Issued by this Authority be Trusted?
The Gibraltar Gambling Commission is one that has for long been laying down standards for player protection and safety. It even challenged the government of the United Kingdom in a European court when it believed new rules being introduced would have eroded player safety. Besides this ongoing debate of new EU rules, the Gibraltar Gambling Commission has suggested and moved to implement some new regulations that serve not just player protection but also works to protect underage players that could be trying to gain access to online gambling illegally.