Gibraltar Preparing For U.K.Online Gambling Legal Battle

Published Wednesday, February 06, 2013 - Online-Casinos.com

The newest effort by the British government to get a firm grip on the online gambling industry by reforming its tax regime is hitting few snags as other jurisdictions gives the proposal a run for its money. It seems that the lawyers are going to battle over the UK Department for Culture, Media and Sport’s significant changes to current gambling laws in the United Kingdom.

The Gibraltar Betting and Gaming Association has revealed it is against the proposed draft legislation being introduced in the U.K. parliament. Gibraltar will be adversely affected they say by the elimination of the current system know as the white list. The white list system enables those online gambling operators registered in Gibraltar to advertize and offer their services in the U.K. as a recognized licensing jurisdiction. The new gambling framework will require those operations in Gibraltar to apply for a U.K. Gambling Commission license to operate and be subject to same taxes as all of the rest of the registered operators.

Gibraltar Betting and Gaming Association is accusing the government of the U.K. of making these changes to make more money and to catch more revenues from an industry that has left Britain to work offshore where the taxes and fees are much less. The Gibraltar Betting and Gaming Association revealed in a statement, "From a regulatory perspective, the only possible and partial justification for the Draft Bill is based on perceived but unsubstantiated threat to UK customers arising from operators in emerging jurisdictions targeting the UK market," Continuing the Association said, "Even if this limited justification was proven, the Draft Bill is clearly disproportionate since it does not bolster the current white list (including EEA) regime with a requirement for increased reciprocity in the exchange of information and management of consumer protection." As Gibraltar argues the decidedly negative affect that the UK gambling changes will bring, the GBGA said that it has set aside £500,000 to pursue legal action.

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