Gibraltar Online Gambling Operators File Suit

Published Tuesday, August 19, 2014 - Online-Casinos.com
Gibraltar Online Gambling Operators File Suit

The new laws regarding online gambling operators in the United Kingdom have a challenge on their hands. The High Court received the paperwork this week from the Gibraltar Betting and Gaming Association providing the argument that the changes proposed by the U.K.’s Gambling (Licensing and Advertising) Act 2014 are “illegitimate, disproportionate and discriminatory” against online gambling firms licensed in other European Union jurisdictions such as Gibraltar.

The GBGA’s challenge rests on the premise that the Act runs contrary to Article 56 of the Treaty on the Functioning of the European Union (TFEU), which guarantees the right of free movement of services between EU member states. E.U. member nations are allowed to put limits on Article 56 but only if such restrictions are to protect consumers.

This October first will see online gambling operators required to hold a license issued by the UK Gambling Commission if they wish to sell their services to and accept wagers from gamblers in the U.K. The GBGA claims the government of the U.K. has failed to demonstrate any significant harm that consumers have been subject to by Gibraltar-licensed operators. The GBGA alleges the UK government is imposing its new regulations to “grant UK operators a competitive advantage over those from overseas.”

The move has operators such as William Hill and Ladbrokes who moved to Gibraltar because of a better tax situation very upset that the licenses they have paid for in Gibraltar will be no longer valid.

CEO Peter Howitt of the Gibraltar Betting and Gaming Association commented that the government of the U.K.’s failure to listen to Gibraltar’s concerns “extremely disappointing” and ridiculed the Commission’s “laughable” belief that it is better positioned than Gibraltar regulators to protect UK punters. Howitt also said the Commission had “neither the resources, the legal power, nor the skills” to function as a global regulator, which Howitt maintains exposes the real nature of the UK government’s imposing of the 15% online Point of Consumption Tax  come December first.

 

 

 

 

 

 

 

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