Monday, August 19, 2013

Gibraltar Gambling Operators Contest British Tax Proposal




Gibraltar operators seem to be extremely disadvantaged by the recent proposal made by UK regulators, who proposed a 15 percent tax on both UK gaming and betting companies and Gibraltar based gambling operators. At this point in time, the tax regime on gambling operations in Gibraltar is set to 1 percent, making this region the perfect place for operators who want to find out how start online casinos or maintain a profitable gambling business venture.
By passing this proposal into law, Gibraltar operators will not only be asked to pay the 15 percent tax on gross gaming they revenues, but will also be required to apply for a license from the British gambling regulatory body. At this moment, no less than 60 percent of bets placed at gaming and betting sites in UK are made through sites registered in Gibraltar. Operators are commenting that this new proposal will influence their businesses in a negative way and will decrease their profits significantly.
Furthermore, the operational costs of gambling activities in Gibraltar will also be influenced by levies applied on marketing services, like advertising, which are currently not taxed by the gambling regulator. Several world-renowned bookmakers moved their operations to Gibraltar in order to reduce costs which rise to $30 million per year, but considering the new proposed regulatory changes, operators will have to reevaluate their business strategies.

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