Online Gambling Operators in Gibraltar Fight Back

Published Thursday, June 19, 2014 -
Online Gambling Operators in Gibraltar Fight Back

The crunch is coming in the United Kingdom for operators of online casinos and poker rooms. The government will impose new tax rules to those who offer their gambling services to anyone in the United Kingdom. The U.K. gambling commission is stopping up the gaps in the online gambling industry by requiring all operators to be licensed in the jurisdiction and pay a point of consumption levy.

The companies that are located offshore but are considered British such as Gibraltar are now lashing out legally against the proposed changes to the current system. Some may think the legal effort against the bill to be late in the game considering the bill has received Royal Assent. The Gibraltar Betting and Gaming Association has written to the UK government and Gambling Commission to declare its intention to challenge the act.

The Gibraltar group of online gambling operators said that the proposed changes would effectively require the Gambling Commission to police the online gambling sector on a worldwide basis. Peter Howitt, Chief Executive Officer of GBGA commented, “This is bad for UK consumers, bad for the regulated industry, bad for Gibraltar and is in breach of European law, but fantastic news for operators who choose to avoid proper regulation,” Howitt continued, “We know of no precedent where any regulator in any industry will be granted the role of licensing and regulating operators all over the world in this way, threatening to criminalise companies and people who fail to submit to its regime. This is plainly unworkable.”

The law suit is dedicated to making this law look unfair and cost incurring for the consumer which in turn would drive the punter to the unregulated web locations which the government doesn’t receive any benefit from.

Another argument the group from Gibraltar presented was that it already has its own regulatory regime and there was a more appropriate consumer protection program that was rejected by the government without any consideration or explanation.



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