Gibraltar's Gambling Market in Transition: Between Layoffs and New Legislation

The winds at the Rock of Gibraltar are currently blowing a bit harder for the gambling industry. Recent months have seen a flurry of restructuring announcements and job cuts from prominent operators. However, Andrew Lyman, Gibraltar's Gambling Commissioner, leaves no doubt about the future viability of the hub. He emphasizes that the territory's iGaming model is by no means spent but is rather undergoing a necessary phase of adaptation. The sector remains vibrant, despite headlines about redundancies casting a temporary shadow.

The current situation is characterized by a complex mix of regulatory changes in the United Kingdom and global economic drives for efficiency. Lyman acknowledges that the cumulative impact of media stories regarding multi-jurisdictional redundancies can be unsettling. However, he does not share the view of those who see a downward trend in employment as a terminal decline. Instead, he notes that operators are sharpening their costs and increasingly relying on automation and Artificial Intelligence to remain competitive in a harsh environment.

Numbers and facts

The raw figures highlight the pressure on companies. Lottoland began consultations on redundancies in July, citing regulatory developments that affected profitability. Entain is looking to cut between 400 and 500 roles across various markets. The strain was particularly evident at bet365, where approximately 40 roles in Gibraltar and Malta are at risk as part of a wider 340 job cut initiative. A massive factor is the fiscal burden in the UK. The Remote Gaming Duty for online casinos is set to rise from 21 to 40 percent starting April 2026. For online betting, the tax rate will climb from 15 to 25 percent from April 2027.

"Those that write off Gibraltar as a tier 1 gambling hub are wrong. The Model is under pressure, but far from spent." - Andrew Lyman, Gambling Commissioner at Gibraltar Gambling Division

These tax adjustments in the UK Autumn Budget of last year have forced many operators to rethink their location strategies. Nevertheless, Lyman sees Gibraltar continuing as an attractive licensing hub for both B2C and B2B models. The new Gambling Act 2025 plays a key role here, as it strengthens regulatory substance and ensures that companies are not just shell operations but demonstrate real economic activity on the ground.

Background

Gibraltar has a long tradition as a pioneer in gambling regulation. With the Gambling Act 2025, which replaces the 2005 legislation, the territory is responding to the post-Brexit landscape. Effective since October 1, 2025, with a six-month transitional period, the framework introduces an "approved persons" regime where senior managers must be personally licensed. Furthermore, specific license categories for marketing services and software hosting have been established, bringing the entire value chain under supervision. A significant milestone was Gibraltar's removal from the European Commission's high-risk list, aimed at restoring trust among international banks and partners.

A new growth path is seen in prediction market platforms. In April 2025, the first license in Europe for such a platform was granted to ADI Predictstreet. Since July, a dedicated regulatory framework has existed for this category. This shows Gibraltar's attempt to use technological niches and modern legislation to offset the loss of mass-market business in classical sectors. Close cooperation with the UK Gambling Commission, solidified in a Memorandum of Understanding, ensures continued access to the vital UK market, distinguishing Gibraltar from competitors like Malta or Curacao.

Why it matters for German players

For German players, the situation remains clear: operators holding only a Gibraltar license operate in the German market without the necessary national permit. Since the Interstate Treaty on Gambling 2021 (GlüStV 2021) came into force, a license from the Joint Gambling Authority of the States (GGL) is mandatory. Gibraltar-based companies like Entain or bet365 hold such licenses for their German subsidiaries but must adhere to strict local rules. These include the cross-operator deposit limit of 1,000 Euros per month and the 1 Euro per spin limit on virtual slots.

Those wishing to play safely in Germany should always check the official GGL whitelist. While a Gibraltar provider often offers a wider range of games without the 5-second rule, these lack connection to the OASIS exclusion system and the LUGAS monitoring system. German customers enjoy significantly higher legal protection in GGL-licensed casinos regarding withdrawal disputes or player protection measures. The regulatory upgrade in Gibraltar via the 2025 Act does not change the fact that German law is exclusively applicable to the German market.

What it means for GGL-licensed casinos

For casinos with a German GGL license, the developments in Gibraltar mean a stabilization of competitive conditions. As major corporations streamline their Gibraltar operations and regulatory requirements there rise, the incentive to serve the German market via gray-market offerings decreases. The increased substance requirements in Gibraltar under the Gambling Act 2025 force companies to staff their compliance departments more seriously, which indirectly benefits adherence to German regulations. The introduction of the Gambling Appeals Tribunal in Gibraltar further demonstrates that legal certainty for operators is being strengthened, making the entire European market more attractive for serious investors.