Gibraltar is overhauling its B2B licensing regime, replacing a long-standing one-size-fits-all approach with a tiered framework designed to reflect the scale of individual suppliers.
The reforms, introduced under Gibraltar’s new Gambling Act, will allow suppliers to apply for licences based on the size of their operations rather than defaulting to a single standard.
Previously, businesses were effectively required to obtain a full B2B licence regardless of how large or small their operations were, creating disproportionate barriers for smaller suppliers.
The changes also bring an end to Gibraltar’s “sheltering” system, which allowed suppliers to operate under licensed B2C operators before securing their own standalone licences.
Steven Caetano, senior partner at Gibraltar law firm ISOLAS, discussed the reforms during an episode of the Connected by Pragmatic Solutions podcast, explaining the shift in regulatory approach.
“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.”
Caetano added that the tiered model creates a more flexible path for suppliers at different stages of growth, removing a significant structural obstacle from the previous system.
“You can grow with your business, whereas before you had to apply for the tier one B2B licence regardless of your size,” he said.
The wider Gambling Act reforms are designed to modernise Gibraltar’s regulatory framework, which has not been substantially updated since its original introduction in 2005.
Caetano noted that technological change had been a core driver of the reforms, particularly the shift away from localised server infrastructure toward cloud-based services.
“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.”
Gibraltar Betting and Gaming Association secretary general Nicky Macias, also speaking on the podcast episode, said the focus has now moved firmly toward implementation and ensuring clarity for operators throughout the transition.
“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.”
A six-month transition period is expected to give operators and suppliers sufficient time to align with the new framework before its full rollout comes into force.
