Gibraltar: Increased License Fees, Decreased Gambling Taxation
The British territory of Gibraltar, situated on its southern tip in Spain, has recently taken steps to boost its gaming industry by reducing its gambling tax to 0.15% and introducing a new licensing system with increased fees. To better prepare for Brexit, the process is geared toward supporting local companies and preserving Gibraltar's European status.
In a recent statement, Gibraltar's gambling minister, Albert Isola, revealed plans to cut the online gambling tax by 0.85% to a mere 0.15%. This change, which came into effect immediately, will be calculated annually on the gross revenue of companies based in Gibraltar. Both sports betting providers and online casinos will be subjected to this sudden shift. Isola referred to this tax as a "flat rate" for gambling establishments.
Amid these modifications, Gibraltar has also revamped its licensing system. Business-to-Business (B2B) and Business-to-Customer (B2C) licenses are now set to be issued and charged separately. There have been significant increases in these annual license fees as well, with B2B licenses going up to £85,000, and B2C licenses skyrocketing to £100,000. The new system will be introduced this July.
Contrary to popular belief, Isola claims that the Brexit deal didn't influence these decisive measures. The changes rather stemmed from the need to revamp regulations for "a constantly changing industry landscape."
Gibraltar, which boasts a thriving online gaming sector, generates over 3,500 jobs and contributes more than 50% to its GDP. The territory's tax policies attract many industry players, with Gibraltar and Malta being among the prominent European locations for online gambling.
However, uncertainties loom on the horizon as Gibraltar braces for the UK's exit from the EU. It's feared that licenses might lose efficacy throughout the EU or face potential tax hikes. Isola acknowledges the challenges with "uncertainties" and "headwinds," but expresses optimism, calling Gibraltar the most desirable location for the gambling industry in Europe. He insists that a "hard Brexit" remains "very unlikely."
Due to these concerns about private companies, various providers, such as William Hill, Bet365, and Paddy Power Betfair, seem to be making precautionary moves. William Hill, for example, recently opened an office in Malta, and Bet365 seemingly relocated. Both have denied any link between Brexit and these decisions, but many speculate that they are taking preventive measures.
In the face of these developments, Isola is confident in the resiliency of the Gibraltar gambling industry. He highlights the "high level of trust" bestowed upon the territory over the years, with hopes of gaining entrance to British remote gambling markets. He believes that these measures assert autonomy and autonomy.
Yet, industry insiders question the possible ramifications of such major providers leaving Gibraltar for greener pastures. It remains to be seen if this will spark a dangerous trend or if the "rock" can continue to stand firm. By now, one fact is certain: Brexit in 2019 will undoubtedly shake up Gibraltar and the European gaming market.
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Source: www.onlinecasinosdeutschland.com
