Synonymous with offshore finance and gaming since 1998, Gibraltar holds credence as a stalwart licensing jurisdiction for over 200 online gambling corporations. Located at the Southernmost tip of Europe, Gibraltar is the farthest UK offshore territory and although self-governed, has established many legal frameworks that directly mirror those of England. Conversely, Gibraltar is not subject to the same taxation laws, making it a welcome tax-free haven for offshore enterprises. Following confirmation of the UK Gambling Act 2005, Gibraltar became recognized as an official territory of the European Economic Area (EEA) and as such, was required to conform existing licensing laws. As of 2005, all gambling operations run from the jurisdiction must be licensed by the Gibraltar Licensing Authority. Under the Gambling Act 2005, Gibraltar may offer licensing for bookmakers, eGaming operators, lottery promoters, gaming machine owners and casino operators.

An exemplary jurisdiction since the late 1990's, Gibraltar has established a series of conditional requirements to which all applicants must adhere. Firstly, all companies must be recognized blue chip corporations with demonstrable history as a gaming provider. Additionally, every applicant must submit a comprehensive business plan, including such details as share capital, annual profits and expected growth following licensing. Gibraltar Gaming Authority will seek confirmation of tax liability for other jurisdictions and proof of RNG (Random Number Generation) Software proposed for/ already in use. A Remote Gaming License covers all aspects of wagering, including telephone bets. Gibraltar Gaming Authority does not currently charge a fee for the Remote Gaming License, however, license holders are required to pay $2000 per annum for administrative costs and must display the Gibraltar seal prominently upon all incorporated eGaming websites. A Remote Gaming License is issued per subsidiary, therefore corporations may be required to apply separately if seeking licensing for more than one online brand.

Tax regulation in Gibraltar is subjective. Non-resident companies are exempt from payment of all capital gains, estate and VAT taxes, whereas those incorporated within the jurisdiction are currently liable. According to the Electronic Commerce Act 2001, all Gibraltar limited corporations are subject to 1% of total turnover accrued from fixed-odds and betting games, capped at $600,000 per annum. Online casinos are liable for payment of 10% of their total annual turnover, with no cap applicable. The Gambling Ordinance 2005 imposes the same age restrictions as the UK for gambling providers – currently 18 for all betting/ wagering services and 16 for lotteries.

In January 2011, Gibraltar's government announced a new corporate tax model that saw a jump in tax from 1% to 10% from the previous year. A move alleged to have been influenced by European tax laws, it came somewhat as a shock to the 175 casino owners licensed by the jurisdiction. Far from causing a mass exodus of companies to territories offering enticingly lower tax thresholds, the development had little adverse effect, since Gibraltar remains a VAT-free zone.