Court ruling says Gibraltar operators pay same as UK counterparts
Gibraltar online gaming has been dealt a blow following the European Court of Justice ruling that operators there will have to pay the same rates of tax as their UK based counterparts.
The UK Government who the online operators were fighting in the case are disappointed in the decision that will see them lose their corporate tax is 10% and 1% levy on all bets placed with them. Now operators will have to pay 15% on all bets placed with them, but is still much lower than other EU countries charge such as Spain which levies 25% on all bets staked.
The judgement said that, “Although Gibraltar does not form part of the UK,” the judgment states that “Gibraltar is a European territory for whose external relations a Member State, namely the UK, is responsible, so that EU law is applicable to that territory.”
In essence the ruling stated that Gibraltar cannot be classed as a separate territory which the Gibraltar Betting and Gaming Association argued for.
The court said that “There is no factor that could justify the conclusion that relations between Gibraltar and the UK may be regarded as akin to those existing between two Member States.”
This is a major blow to Gibraltar online gaming especially in the time that the UK is preparing negotiations for Brexit from the EU. Gibraltar now will be classed as part of that Brexit and not a separate territory which the Gibraltar Betting and Gaming Association wanted to protect their operators.