Online Gambling Tax Break From Isle Of Man

Published Monday, December 22, 2014 - Online-Casinos.com
Online Gambling Tax Break From Isle Of Man

All aspects of online gambling are competitive and operators all over the globe are looking for ways to save a percent or two and improve the bottom line. The days are over when white labelled online gambling operators can be registered in places like Gibraltar and other tax havens such as Malta and still offer their products to the residents of the United Kingdom. New laws are to be implemented from December first 2014, the Gambling (Licensing & Advertising) Bill will change the taxation of remote gambling from a 'place of supply' basis to a 'point of consumption' basis. The betting industry alone is reported to contribute £6 billion as of January 2010, 0.5% of GDP. Furthermore it employs over 100,000 people and generates £700 Million in tax revenue.

Keeping the situation somewhat tolerable the Isle of Man which currently has 56 licensed online gambling operators making the industry there responsible for 13% of the island’s gross domestic product will offer a break from the 15% tax on revenue generated via customers based in the UK. It was reported in PokerFuse the Isle of Man government will give licensed operators the right to claim double duty relief to a maximum equal to the gambling duty that would have been paid to the Isle of Man on revenue generated from UK customers. The Gibraltar Betting and Gaming Association (GBGA) has attempted but failed to have the UK High Court overturn the UK’s new licensing regime.  

The Chief Executive Officer of the GBGA remarked to eGaming Review that the judge on the case stated the GBGA’s application had raised “very significant points of principle and practical issues for the enforcement of revenue collection.” Howitt has declined to offer an opinion on the outcome, stating the litigation “has a lot of elements that make success politically difficult.”

 

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