Gibraltar Protests Proposed 15% Gambling Tax

 Gibraltar Protests Proposed 15% Gambling Tax

Gibraltar officials are protesting the British government’s decision to impose a 15% gambling tax on Gibraltar-based online casinos and betting services

Around 60% of online bets placed by Britons were at Gibraltar registered sites. The 15% tax would be the same as the one imposed on Britons who bet within the British mainland.

Earlier this month KPMG advised the UK government to cut their proposed 15% tax down to 10%. The Remote Gambling Association (RGA) stressed that a tax rate higher than 10% would force online gambling operators to operate illegally. Now it seems that officials in Gibraltar are becoming more vocal about the government’s decision.

Currently the tax on online gambling operators in mainland Britain is 15%, and Gibraltar operators are taxed just 1%. Furthermore, the new rules would also make it compulsory for Gibraltar-based companies to have a British license in order to serve British clients. Gibraltar is the success story in the online gambling world and officials there fear that a tax increase will jeopardize that success.

Steve Buchanan, the head of Ladbrokes operations in Gibraltar, said that the tax would impose a huge unnecessary cost on their business. However, Buchanan did stress that it might be a good idea to implement tax for other sectors of the gaming industry like advertising.


Comments are closed.