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.