Gibraltar's Online Gambling Operators Lose Legal Battle

Published Saturday, June 17, 2017 -
Gibraltar's Online Gambling Operators Lose Legal Battle

The fact that some online gambling jurisdictions are better than others makes the divorce between the European Union and Britain particularly difficult for those operators located in Gibraltar. The Court of Justice of the European Union (CJEU) interprets EU law to make sure it is applied in the same way in all EU countries. It also settles legal disputes between government, corporations and individuals.

In this case the decision was made regarding The Gibraltar Betting and Gaming Association (GBGA) and its legal case over whether Gibraltar was effectively part of the United Kingdom and can be treated as a single EU member for some aspects of EU law, receiving a ‘single entity’ ruling.

Unfortunately the case was lost and now Gibraltar and the UK territory are now considered a single Member State. This is bad news for the online gambling industry in Gibraltar. This decision means that the European law that stipulates there should be the freedom to provide services among Member States would not be applicable to the Gibraltar Betting and Gaming Association’s request for a change to the introduction of 15% Point of Consumption (POC) tax in the UK in 2014.

 The (GBGA) represents nearly all of the Gibraltar based online gaming operators. The GBGA argued that Point of Consumption tax is not legal under European Union law because it violates Article 56 of the treaty.  The online gambling organizations did tried hard to make their point earlier in the UK courts but, following a review, the case was referred to the Court of Justice for the European Union. The CJEU said that the 1972 Act of Accession applies and EU acts do not apply to Gibraltar in certain areas of EU law and that the freedom to provide services is not one of the noted exceptions.






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