Online gambling regulatory potential in Grenada

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1) Current situation: no formal regulation

To date, Grenada lacks a separate law governing online casinos and betting sites. This means that:

local companies cannot officially obtain a license to work in the field of online gambling;
foreign operators accept players without local control;
the state loses tax revenues and the ability to control financial flows.

In fact, the market operates in the "gray zone," where offshore operators provide access to island residents and tourists, and local legislation does not contain specific prohibitions, but also does not create a legal framework.

2) Why regulation would be beneficial

For a small economy focused on tourism and services, regulating online gambling has a number of obvious benefits:

a) Tax revenue and license fees
The creation of a regulated market would allow the introduction of registration fees, taxes on gross operator income (GGR), as well as licenses for various activities - casinos, bookmaking, lotteries, slots, live games.

b) New jobs

The development of the iGaming industry requires specialists in IT, customer support, finance, compliance, design and marketing. This creates additional employment, especially among young people.

c) Country reputation

Grenada could position itself as an "ethical and transparent jurisdiction," similar to Malta or Curaçao, attracting responsible operators and investors.

d) Tourism and integration

Regulation of online gambling fits well with the existing tourism sector, with many Caribbean hotels already offering on-the-ground gaming lounges, and legalising online could expand guest offerings.

3) World examples and regional context

Antigua and Barbuda is one of the pioneers of online gambling in the world: it has been regulating the market since 1994, bringing millions of dollars to the budget.

Curaçao is a popular offshore license, but with reputational risks due to low compliance standards.

St. Kitts and Nevis, St. Lucia - discussing modernizing legislation to attract iGaming companies.

Bahamas - Combine tourism, large casinos and a limited online segment overseen by the regulator.

For Grenada, this means being able to carve out a niche between strict and offshore regimes, creating an attractive but controlled market.

4) Possible control models

Grenada could choose one of three models:

Model	Description	Example
Limited License (B2C)	Issuing permits to operators targeting foreign players subject to KYC/AML. Antigua and Barbuda
Broad regulation (B2B/B2C)	Creation of a full-fledged regulator that issues licenses to operators, suppliers and software providers. Malta
Tourist mode	Online gambling is available for non-residents (tourists), and for local players - partially limited. Bahamas

Such a flexible approach would allow Grenada to develop the sector gradually - with a focus on transparency and control.

5) Main challenges and risks

a) Legislative framework

We will have to develop a new regulation, determine the licensing authority and standards for AML/KYC, responsible play, data protection.

b) International pressure

International organizations (FATF, OECD) require transparency in financial flows, especially in online gambling. Regulation must be compatible with global standards.

c) Reputational risks

Without strict oversight, the market can become a "haven" for dubious operators, damaging the country's image. Therefore, it is important to implement due diligence, public license registries and mandatory auditing.

(d) Technical and human resources

Creating an effective regulator will require IT infrastructure, training, international partnerships, and investment in cybersecurity.

6) Revenue potential for the budget

Preliminary estimates (by analogy with neighboring jurisdictions) show that licensing online gambling can bring from 3 to 10 million USD annually with a moderate tax regime and 20-30 active licenses.

Additionally - creation of related businesses:

call centers and support services;
IT development and hosting;
legal and accounting companies;
marketing agencies for iGaming.

7) Technological and crypto trends

Modern operators are increasingly introducing:

cryptocurrency deposits and payments (BTC, USDT, ETH);
responsible game tools (deposit limits, timeouts, self-blocking);
blockchain audit technologies for transactional transparency and RNG.

Grenada, as a small flexible economy, could quickly implement these solutions using existing FinTech partnerships in the Caribbean.

8) Social aspect and control

Regulation should include programs to prevent gambling addiction, restrict advertising, prohibit the participation of minors and a transparent system of citizens' treatment.

The creation of the Responsible Gaming Fund could be part of the licensing requirements: operators list a percentage of GGR for social, education and sports.

9) Forecast and roadmap

Stage 1 (2025-2026): consulting, market research, draft law.

Stage 2 (2027): creation of a regulator, first B2C licenses, launch of fiscal monitoring.

Stage 3 (2028-2030): expansion into the B2B sector, integration with tourism, international recognition.

💡 So Grenada could become the new hub for regulated online gambling in the Eastern Caribbean, combining transparency, innovation and moderate taxes.

10) Withdrawal

The potential for regulating online gambling in Grenada is significant, especially in the context of the development of digital services, tourism and financial technologies.

The main condition for success is the balance between openness to investors and strict compliance standards.

With the right strategy, a country can not only legalize the shadow segment, but also turn it into a sustainable source of income, employment and reputational capital.