The tournament's 16 seeded players, including world number one Michael van Gerwen, entered the tournament on Saturday and although Smith didn't perform to his usual standard, a 6-1 victory confirms his place in Göttingen in October.
Kim Huybrechts was the only non-seeded player to reach the third round after a 6-3 win over Jonny Clayton, and in doing so the Belgian kept his European Championship qualification hopes alive.
A win over James Wade tomorrow would see Huybrechts knock Ross Smith out of the 32-man field and claim himself a spot at the event.
Elsewhere, Van Gerwen reeled off five legs on the spin to come from 3-1 down to defeat emerging talent Jose De Sousa 6-3 in a thrilling match which saw De Sousa bust 120 when he led 3-1.
Nathan Aspinall and Ryan Joyce kicked off Round Two with an incredible match which saw every leg won in five visits or fewer. Aspinall averaged 108.14 in a 6-4 victory over fellow-Englishman Joyce who also averaged over a ton.
Gerwyn Price rounded off the evening's action with a 6-0 whitewash over Host Nation Qualifier David Francis.
Peter Wright and Mensur Suljovic both claimed 6-1 victories over Dyson Parody and Wessel Nijman respectively, with Ian White also claiming a spot in the third round with a 6-1 win over Michal Rosenauer.
Joe Cullen ended Ritchie Edhouse's European Championship qualification hopes with a 6-3 victory, while Krzysztof Ratajski defeated Steve Beaton by the same scoreline.
Daryl Gurney shook off the challenge of a resilient Carl Wilkinson to win 6-4, with Wade also securing a spot on Finals Day after defeating Paul Rowley 6-2.
Despite not being at his best, World Matchplay champion Rob Cross ground out a 6-3 win against Poland's Krzysztof Kciuk and Dave Chisnall struck the only break of throw in the final leg of his 6-5 win over Jeffrey de Zwaan.
Gibraltar Darts Trophy: Saturday results and Sunday schedule
Saturday September 28
Second Round
Afternoon Session
- Nathan Aspinall 6-4 Ryan Joyce
- James Wade 6-2 Paul Rowley
- Krzysztof Ratajski 6-3 Steve Beaton
- Kim Huybrechts 6-3 Jonny Clayton
- Rob Cross 6-3 Krzysztof Kciuk
- Daryl Gurney 6-4 Carl Wilkinson
- Dave Chisnall 6-5 Jeffrey de Zwaan
- Michael Smith 6-1 Danny Noppert
Evening Session
- Ian White 6-1 Michael Rosenauer
- Jermaine Wattimena 6-2 Dimitri Van den Bergh
- Mensur Suljovic 6-1 Wessel Nijman
- Michael van Gerwen 6-3 Jose De Sousa
- Peter Wright 6-1 Dyson Parody
- Joe Cullen 6-3 Ritchie Edhouse
- Glen Durrant 6-3 Chris Dobey
- Gerwyn Price 6-0 David Francis
Sunday September 8
Afternoon Session (1200 BST)
Third Round (Best of 11 legs)
- Michael van Gerwen v Nathan Aspinall
- Peter Wright v Mensur Suljovic
- James Wade v Kim Huybrechts
- Dave Chisnall v Jermaine Wattimena
- Ian White v Michael Smith
- Krzysztof Ratajski v Joe Cullen
- Daryl Gurney v Glen Durrant
- Gerwyn Price v Rob Cross
Evening Session (1815 BST)
Quarter-finals (Best of 11 legs)
- Michael van Gerwen/Nathan Aspinall v Peter Wright/Mensur Suljovic
- James Wade/Kim Huybrechts v Dave Chisnall/Jermaine Wattimena
- Ian White/Michael Smith v Krzysztof Ratajski/Joe Cullen
- Daryl Gurney/Glen Durrant v Gerwyn Price/Rob Cross
Semi-finals (Best of 13 legs)
Final (Best of 15 legs)
- Winner SF 1 v Winner SF 2
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