Gibraltar Execs Protest British Gambling TaxPublished October 2, 2013 by OCR Editor
British government wishes to tax gambling 15% at point of consumption.
Online gambling officials in Gibraltar are up in arms against British government plans to introduce a 15% gambling tax at the point of consumption - effectively taxing offshore operators.
Phil Brear, Gibraltar gambling commissioner, said that the tax runs "Clearly against the common-sense logic of electronic commerce." According to Brear, around 60% of all online bets placed by British residents were with Gibraltar-registered sites such as William Hill, Ladbrokes, bwin.party and Betfair.
Steve Buchanan, head of Ladbrokes operations in Gibraltar, said the tax would add "a huge and unwanted cost on our business." He did admit there were other advantages to remaining in Gibraltar, pointing out that the territory does not impose value added tax on advertising or other essential activities.
Gibraltar Advantage Reduced
Gibraltar-based online gambling companies pay 1% in taxes up to a maximum of £425,000 per year. Under the new 15% rate, these and other offshore operators will be taxed by the British government at the same level as locally based companies for all services provided to UK residents.
The government could have a battle on its hands though. William Hill, the largest UK remote gambling operator, is threatening to challenge the new regulations on the grounds that they breach EU competition law.