Gaming diversification attracting emerging sectors to Rock, Feetham says

The Minister for Justice, Trade and Industry, Nigel Feetham, said Gibraltar's new Gambling Act is helping attract emerging sectors in gaming and technology, such as prediction markets, digital asset-related businesses and companies involved in stablecoins and digital payments infrastructure. 

Speaking at the KPMG Gaming Summit aboard the Sunborn on Wednesday, Mr Feetham said the legislation had created a pipeline of prospective business-to-consumer and business-to-business licensees, as well as companies relocating functions to Gibraltar. 

He described the legislation as "the most significant modernisation of our gambling legislation in many years". 

"It provides the flexibility needed for technological changes, evolving business models and emerging products while maintaining high regulatory standards." 

Mr Feetham said the new framework kept Gibraltar's regulatory standards, while remaining competitive and supporting innovation and long-term investment. 

He added that implementation of the legislation was already generating feedback from industry and prompting further policy discussions. 

Addressing the UK government's gambling tax increases, Mr Feetham said the measures should be viewed in the context of broader fiscal pressures facing the UK economy and the priorities of the UK Treasury. 

"That is why, almost immediately after the announcement, I embarked on an extensive programme of international outreach aimed at supporting economic diversification and attracting new investment," he told the audience. 

"Increasingly, regulators and businesses around the world are distinguishing between speculative crypto-assets and regulated, fully backed stablecoins that can facilitate faster and more efficient cross-border payments." 

He stressed that diversification did not diminish the importance of Gibraltar's established gambling operators. 

"Our established operators remain the foundation of the sector and continue to make an enormous contribution to Gibraltar's economy," he pointed out. 

According to Mr Feetham, the Gambling Division was progressing several initiatives, including licensing for the gambling marketing sector, a new Social Responsibility Code and updated Technical Standards. These measures will be developed in consultation with industry. 

The Gibraltar Gambling Commissioner, Mr Andrew Lyman, explained that the new regulation had been designed with a multi-jurisdictional approach and sought to accommodate evolving technologies and markets, as well as the wider supply chain. 

The expansion of the business-to-business licensing category had resulted in a significant increase in licence applications from platform providers, software companies and other service providers, Mr Lyman said. 

He added that new licences had also been introduced for sectors not previously covered by the legislation, including marketing companies. 

The Gibraltar Gambling Commissioner is currently licensing marketing companies. The transitional period to get a license ends on October 1. 

Treaty implications

About the implications of the UK-EU treaty agreement for the sector, the minister highlighted the importance of workforce mobility for the continued success of the industry. 

He noted that around two-thirds of employees in Gibraltar's gaming sector are cross-border workers and said wider access to Spain and the Schengen area would enhance Gibraltar's appeal as a place to live, work and invest. 

Mr Lyman also expressed cautious optimism, and a note of concerns among operators about the ratification process. 

"I think people are still worried about the ratification process. They're worried about some unexpected change in government, whether it be in the UK or in Spain. That might, hopefully not, but might sour the process." 

"There's still that residual angst amongst the existing operators. There's also an existing angst around the residence qualifications. And I know there are guarantees being given around that."