Gibraltar is a British Overseas Territory located at the southern end of the Iberian Peninsula, jutting out into the entrance to the Mediterranean Sea. There are 14 British Overseas Territories, including Bermuda and the Falkland Islands, which are the two best known along with Gibraltar. The official currency is the Gibraltar Pound, which is linked to the British Pound. British banknotes and coins are also accepted in Gibraltar. Most stores also accept Euros, but it is not Gibraltar’s official currency.
Gibraltar’s trade history
In the middle of the 18th century, the port of Gibraltar became a naval station for the Royal Navy. Consequently, Great Britain having secured the port, concentrated mainly on exploiting the economic assets of the port. After that, the port allowed the distribution of goods throughout Europe, making it the most efficient way to import and export to Europe and the Mediterranean Sea. Being one of the busiest ports in the world, this has created opportunities. As the center of the international trade market, the Port of Gibraltar has carried out many currency transactions during these exchanges.
However, in 1982 Gibraltar’s economy suffered greatly after the shipyard closed. It was marked by a rapid increase in contraband. A Gibraltarian trade unionist, Mr Bossano described the closure of the Gibraltar shipyard as “a turning point for Gibraltar in its economic history”. For this reason, the government of Gibraltar had to diversify the economy and promote new industries. This coincided with the rise of e-commerce and the use of the Internet, during the era of the emergence of online gaming.
Gibraltar has also become a prime destination for cryptocurrency. Gibraltar is well known as a low tax environment. It does not impose a tax on capital gains or dividends on cryptocurrencies, and crypto exchanges are considered a business. This is a very favorable 10% corporate tax rate, making cryptocurrency a very attractive niche for Gibraltar. It recently hosted the first international post-pandemic crypto event on October 8, 2021 in which 300 crypto enthusiasts and investors participated. Along with that, it’s also one of the biggest gaming centers in the world with incredibly low taxes and some of the biggest names in the online industry residing there, including Lottoland.
Initially, the online gambling industry began with telephone betting, but thanks to specific legislation enacted by Gibraltar, the jurisdiction was able to quickly capitalize on the explosion of online gambling in the late 1990s.
Gibraltar is a haven for online gaming companies mainly because of the tax advantages granted to them by the local government. Currently, Gibraltar oversees 60% of all online gaming worldwide. Gibraltar is the largest and most successful governance in the online gaming world. Online gaming is a booming part of e-commerce and Gibraltar is benefiting from it.
There are over 38 online gaming companies in Gibraltar and many of them are listed on the London Stock Exchange. Gibraltar’s online gambling industry employs over 1,800 people, representing over 14% of its total workforce. This figure is quite astonishing when you consider that the total population is 33,768 and the gross area is only 2.5 square miles.
The government is both supportive and encouraging for new gaming companies, realizing the importance of the sector for the overseas territory. The regulations and standards are always first class, so nothing is allowed to slip. Given that the online gaming industry contributes around 25 percent of Gibraltar’s GDP, it’s understandable that the government wants businesses in the industry to be as successful as possible.
Gibraltar-based companies pay 10 percent corporate tax, PAYE and only 0.15 percent of the gross game return. In addition, there is no capital gains tax nor value added tax payable. This makes it a very attractive position for companies based there with online activities. For this reason, around 75 percent of UK betting activity takes place from Gibraltar.
An online gaming company that has enjoyed the benefits of Gibraltar since 2013 and is growing more and more every day is Lottoland Headquarters based in Gibraltar while being a global hub for the online gaming industry.
How is Lottoland revolutionizing online gambling?
Popular forms of online gaming include online casino games, online poker games, and sports betting operators. However, Lottoland has revolutionized the concept of online gambling by offering these services and more.
In Lottoland, you bet on the outcome of the official draw. For all intents and purposes, you will have the exact same customer experience as if you were playing the official lottery. The main difference is that we take your bet and then pay you if you win.
You can do this in two ways. For smaller price level payments, Lottoland makes payment directly from the fund from total ticket sales. In order for us to make the higher prize level payouts, Lottoland takes out insurance policies to cover the eventuality of a Jackpot winning or a substantial payout on the Lotto bet.
With Lottoland you can bet on EuroMillions with Millionaire and EuroJackpot. From the United States, there are the oversized MegaMillions and PowerBall draws. In addition, you can bet on Irish Lotto, Polish Lotto, four Australian lotteries and many other big draws from Europe and beyond.
Lottoland also offers a range of exciting casino games, instant win games and scratch cards, with prizes of € 1 million available! Every day you can try your hand at becoming a millionaire. You might be able to come and visit Gibraltar on your own one day!
Crypto Currency – Why Gibraltar?
In just 40 years, Gibraltar has transformed from a port economy to an international financial center due to its regulatory regime for blockchain companies in early 2018 based on English law and its growing reputation as an offshore banking haven. Today, the government is adding the thriving cryptocurrency industry to its highly selective portfolio.
Since the implementation of the 2018 regulatory regime, Gibraltar has attracted a number of industry-leading companies, including the leading crypto exchange platform Huobi and the crypto and payments platform Xapo. Gibraltar has now earned a reputation as one of the world’s leading financial centers, which has gained serious pulling power to attract potential crypto firms.
For many people who are not actively involved in international finance, offshore banking hubs raise eyebrows. This is understandable since the explosive discoveries of the 2015 Panama Papers which highlighted many small, finance-focused jurisdictions that place great importance on corporate privacy, which have become interchangeable with illegal activities. However, Gibraltar’s regulatory-driven approach set it apart.
Gibraltar has a strong track record of quality rather than quantity, as shown by its approach to the gaming industry, with only certified brands authorized to operate in the jurisdiction and their strong regulatory framework. Companies believe their goal is to be equally selective in order to attract reputable operators who understand and appreciate the business and reputational advantages of operating within a respected regulatory framework.
For this reason, a annual research report In the global Crypto Hedge Fund space, commissioned by PwC and Elwood Asset Management, has seen Gibraltar secure its place as the third preferred jurisdiction for the domiciliation of hedge funds, behind the Cayman Islands and the United States.
While the Cayman Islands and the United States have maintained their position as the top two places where crypto hedge funds are domiciled, their market share has declined overall. Meanwhile, Gibraltar has passed BVI and Luxembourg, dropping Liechtenstein to less than 5 percent.
Can you travel to Gibraltar?
Gibraltar has the highest level of COVID-19 vaccination rates among those over 18 of any country in the world. Therefore, it is on the UK government’s green list.
Anyone with the correct travel documents can travel. Many nationalities can still enter without any restrictions. Anyone from the UK, an EU country, as well as Jersey, Guernsey, Isle of Man, Andorra, Monaco, San Marino and the Vatican.
Anyone on the current list of countries allowed to enter the EU is also allowed to visit without restriction – at the moment these are Iceland, Liechtenstein, Norway, Switzerland, Australia, Canada, Georgia, Japan, New Zealand, Rwanda, South Korea, Thailand, Tunisia, Uruguay and China.
So book yourself a flight to this unique charming little town and experience it for yourself! In the meantime, take a look at the upcoming crypto and online gaming markets – who knows this could end. pay for your trip!
Please play responsibly. You must be over 18 to play the lottery. When the fun stops, stop. Be aware of the bet – for help and advice, click here.