Gibraltar Proposes New Fees for Gaming Companies

Gibraltar Proposes New Fees for Gaming Companies

The Government of Gibraltar discussed licensing fees for foreign gaming companies. The results of the consultations will be added to a proposed bill that might revolutionize the country’s Gambling Act.

Gibraltar Proposes New Fees

As a result of the consultation, a new framework for the licensing and regulation of commercial gambling was proposed. The amendments also envision changes to the licensing and classification of overseas gaming businesses.

Right now, Gibraltar uses a uniform system, asking all business-to-customer and business-to-business businesses to pay an annual fee of $111,400 and $89,000 respectively. However, under the proposed amendments, companies will pay a different sum depending on their annual GGY.

First of all, the new rules envision a licensing application fee of $33,000 for B2C operators and a fee of $22,000 for aggregator companies. Direct software services will only have to pay around $11,000.

Operators that earn $22 million or less will only have to pay a fee of around $56 million. Meanwhile, operators that earn more than that but less than $336 million would have to pay a fee of $111,000. Lastly, operators that earn more than $336 million a year would have to pay $224,000.

B2B Companies’ Fees Will Also Change

B2B companies will also see certain changes in the fees they have to pay. Aggregators will be asked to pay a uniform basic fee of $95,000. For each additional vertical they offer, aggregator companies will have to pay an additional $17,000. Aggregators will also have to pay an annual fee that equals 1% of their gross revenue.

Platform providers very much face the same fees. They will have a basic fee of $95,000, plus an additional $17,000 for every additional vertical. The difference is that sportsbook suppliers will have to pay an additional $56,000 a year for the supply of betting data and content. The new rules explained that B2C operators that maintain in-house platforms will not be subject to additional fees.

Direct Licensing providers will also have to pay a different sum depending on their sales. Tier 1 companies will have to pay $95 a year. Companies that earn $616,000 or less, on the other hand, will have to pay a standard $56,000. Those who fail to earn even $224,000 will have to pay a fee of around $22,000. Gibraltar’s government argues that it is time to rework the Gambling act. This “tiered” approach, lawmakers argue, will make it easier to fairly regulate the industry.