The High Court recently rejected Gibraltar Betting and Gaming Association’s (GBGA) legal challenge with regards to the latest Gambling Act 2014 in the United Kingdom. Last month, the UK Department for Culture, Media and Sport announced that the latest licensing system ‘Point of Consumption’, which was supposed to be implemented from October 1, would have to be delayed owing to the appeal.
The legal challenge was started by GBGA in the month of August after labelling the terms and policies of the UK Gambling Commission as ‘unlawful’. It also complained that the system was ‘discriminatory’, ‘illegitimate’ and ‘disproportionate’. However, the last hearing in the High Court suggested that the system would be ready to be implemented in the United Kingdom from November 1, 2014.
Effective implementation from November 1
Justice Green’s decision gives a clear idea about UK’s plans to effectively implement the modifications under the Gambling Act from November 1. The date for its implementation has already been pushed back and delayed by one month in the process of adjudication of the GBGA challenge.
Some of the most crucial elements of the modifications being introduced under the Gambling Act include legal licensing for United Kingdom facing operators. It is required that legal and synchronized services be offered by licensed operators in some major international administrations or jurisdictions. The most important element among the modifications is that a 15 percent tax with regards to “point of consumption” would be applicable to all the gambling deals that involve those who bet from the UK, irrespective of the location of the online gambling company.
Preventing tax loss
One of the hopes from the latest regulatory modifications is the hope of sending back home tax income, which was lost when several dozen gambling firms in the UK shifted their corporate operations in the last decade to Gibraltar. Almost 55 percent of all the gambling transactions in the United Kingdom are now executed by online sites based in Gibraltar. Owing to the tax-friendly licensing rule in Gibraltar, the firms could carry out their operations in a virtually tax-free environment.