Gibraltar should not be written off as a tier 1 gambling hub, regulator says

Gibraltar Gambling Commissioner Andrew Lyman says the territory’s igaming model is “far from spent”

Key takeaways:

• Andrew Lyman, Gibraltar’s Gambling Commissioner, says Gibraltar’s igaming sector remains “vibrant” despite recent redundancy consultations.
• Several operators, including Lottoland, Entain and bet365, have announced or consulted on job cuts affecting Gibraltar-based employees.
• Lyman said the UK’s higher Remote Gaming Duty has added pressure, but that automation, AI and wider efficiency drives are also contributing factors.
• He insisted Gibraltar remains an attractive licensing hub and said the new Gambling Act has not damaged the jurisdiction’s competitiveness.

Gibraltar.- The Gibraltar Gambling Commissioner, Andrew Lyman, believes the territory’s igaming industry still has life in it despite recent challenges, such as the rise in Remote Gaming Duty in the UK. Lyman addressed the situation in a post on LinkedIn, lamenting layoffs but expressing optimism that the sector “remains vibrant”.

A number of Gibraltar-based operators have announced restructurings. Lottoland announced in July that it had begun consulting Gibraltar employees over proposed redundancies, with the company citing “significant regulatory and commercial developments” that had materially affected profitability. Entain has also been consulting on layoffs as it seeks to cut 400 to 500 roles across various markets. More recently, approximately 40 roles across Gibraltar and Malta have been put at risk as part of a proposed 340 job cuts across Bet365’s business, which has the bulk of its operations in the UK, in Stoke-on-Trent. 

Lyman expressed sympathies to gambling sector employees in Gibraltar going through redundancy consultations but said he was optimistic about the sector. 

“The cumulative impact of media stories about multi-jurisdictional redundancies in the sector can cast a cloud over the Rock, but from my position I do not share the same views of others who see a downward trend in employment numbers as a terminal decline,” he wrote.

One factor often cited for operators’ restructurings is the UK’s Autumn Budget last year, which raised Remote Gaming Duty on online casino games from 21 to 40 per cent from April 2026. Tax on online betting is to rise from 15 to 25 per cent from April 2027.

However, Lyman recognised that the UK tax changes were not the only reason for the redundancies. He notes that  “operators are sharpening their approach to costs, driving efficiencies in their business and increasing automation and implementation of AI”.

“External factors may have accelerated this efficiency drive, but in an increasingly competitive environment there is no room for complacency,” he wrote. “The challenge is too great to watch from the sidelines and the level of disruption and consolidation is not over.

“That said, the majority of our operators are in step with Gibraltar and are seeking to minimise the effect on the local economy; as much as they can. From what I am seeing from within the Gambling Division and the sector generally there is cause to think the sector remains vibrant. I found this view on the continued interest in the jurisdiction from a licensing perspective (traditional B2C, B2B and derivative models).”

Lyman also insisted that Gibraltar’s new Gambling Act “has not undermined jurisdictional competitiveness”. 

“Gibraltar remains an attractive licensing hub with a number of USPs,” he said. “The Treaty enhances the offering and the residency requirements are supported by an underlying principle to support the sector.

“Therefore, like the jurisdiction, the sector will have cloudy days, days that are uncomfortable and days of uncertainty. However, it would be wrong to suggest that it is all downside and that the sun will never come out again. Those that write off Gibraltar as a tier 1 gambling hub (and some of the doomsayers are within the jurisdiction) are wrong. The Model is under pressure, but far from spent.”

Gibraltar has been eyeing the growth of prediction market platforms as an area that could have the potential to help make up for any decline in contributions from igaming. In April, the Gibraltar Gambling Commission became the first regulator in Europe to issue a licence to a prediction market platform.

The regulator initially granted a gambling licence to ADI Predictstreet in time for the FIFA World Cup 2026, for which the UAE-based operator was a sponsor. In July, the Ministry for Justice, Trade and Industry published a dedicated new regulatory framework for prediction platforms establishing a distinct category with its own authorisation and compliance requirements under the new Gambling Act 2025.

FAQs

Why has there been concern about Gibraltar’s gambling sector?
Several gambling operators have announced redundancy consultations affecting Gibraltar-based staff.

What factors are driving restructurings?
Higher UK gambling taxes, cost-cutting measures, efficiency programmes, automation and the adoption of AI.

Is Gibraltar’s igaming sector still competitive?
Andrew Lyman, Gibraltar’s Gambling Commissioner says Gibraltar remains an attractive licensing hub and that its gambling model is under pressure but “far from spent.” The territory has also expanded into licensing prediction market platforms.