Gibraltar Introduces Tiered B2B Licensing Under New Gambling Act

Gibraltar's New Gambling Act Brings Tiered B2B Licensing

One of the most significant changes introduced by Gibraltar’s new Gambling Act is the replacement of the existing B2B licensing model with a tiered structure. Under the current framework, suppliers have generally been required to obtain the equivalent of a full B2B licence, regardless of the scale of their business.

The updated legislation introduces multiple licence tiers, allowing suppliers to apply for an authorization that matches the size of their operations. The objective is to reduce costs and regulatory barriers for smaller companies while maintaining oversight across the market.

The reform also marks the end of Gibraltar’s long-established "sheltering" system, under which suppliers operated through the infrastructure of licensed B2C operators before obtaining their own licence. Although this arrangement enabled regulators to supervise new suppliers before granting independent authorization, it will now be replaced by a formal licensing pathway.

Lower Costs and Greater Flexibility for Suppliers

Speaking on the Connected by Pragmatic Solutions podcast, Steven Caetano, Senior Partner at Gibraltar law firm ISOLAS, explained that the new legislation creates a more proportionate regulatory framework.

"The new legislation effectively accelerates that process and does away with the sheltering," Caetano said. "If you're an existing supplier and don't feel you're big enough, you can go for a tier three licence, which means a smaller licence fee and a lower number of customers you can service."

According to Caetano, the revised model will benefit both suppliers already operating in Gibraltar and companies considering entering the jurisdiction, as businesses will now be able to scale their licences alongside their commercial growth.

"You can grow with your business, whereas before you had to apply for the tier one B2B licence regardless of your size," he added.

Gambling Act Modernizes Gibraltar's Regulatory Framework

Beyond licensing changes, the new Gambling Act is intended to update Gibraltar’s regulatory structure to reflect the transformation of the online gambling industry since the original legislation came into force in 2005.

Caetano noted that the previous framework was heavily focused on technology infrastructure and server location. However, the growing adoption of cloud-based services has made those requirements increasingly outdated.

"Technology has changed a lot," Caetano said. "There's a lot of cloud services provision. That requirement to have all your technology based in Gibraltar is not realistic nowadays. So we need to adapt to the changing times, and hence the modernisation."

The revised legislation places greater emphasis on operational substance while accommodating modern technological developments that characterize today's regulated online gaming market.

Six-Month Transition Period Planned

Implementation of the legislation will now enter a transition phase aimed at helping operators and suppliers adapt to the new regulatory framework.

Gibraltar Betting and Gaming Association Secretary General Nicky Macias said the priority has shifted from legislative approval to practical implementation.

"We are now going through the most important phase, which is we've got the law, and now we're going through a transition process," Macias said. "We're going to implement the new law."

The transition is expected to last six months, providing operators and B2B suppliers with time to align their licensing and compliance processes before the new Gambling Act is fully implemented.