Severe Rise in Gibraltar’s Taxes on Online Gambling


Different classification of online gambling companies

This weekend brought bad news for all online gambling operators based in Gibraltar, with the UK newspaper Guardian reporting about the government’s plans to tenfold the current 1 percent tax rate from 2011, which is set with a ceiling of EUR500,000 per year. Still, to keep the regime attractive, online gambling companies will not have to pay VAT. It was further specified that this industry employs 2,000 people, or 12 percent of the workforce in Gibraltar, lending a helping hand to the local economy against Spain's harsh economic climate.

Precisely the thing that drew a great number of online gambling companies to Gibraltar, including Party Gaming, Victor Chandler, William Hill and Ladbrokes, was its low tax rate, which has of recent attracted the internet divisions of Ladbrokes and William Hill to move from the UK that has a very high taxation rate, in order to be turn into a better competition to offshore companies.

According to the newspaper, online gambling company taxes filled the Gibraltar government’s budget with EUR12.4 million in 2009, and this number will be ten times higher in 2011 as the government plans to bring the online gambling taxation to the same level as for other types of companies. However, this number may turn out to be much lower if the companies decide to move to some other place with softer tax regime.

The regional newspaper El Paid learned from a bookie Victor Chandler that: "Nobody will leave, although we'll all complain about the tax going up."

The Premier of Gibraltar Peter Caruana, explained the government’s tax raising plans as a strategy to conform with European law, saying: "To comply with EU law we must phase out the tax-exempt company system in 2010. However, in order to sustain our successful economic model we must retain a commitment to a very competitive corporate tax model."

In addition, The Guardian underlined that Gibraltar's neighbor Spain has internet gambling regulations in the pipeline to supply the demand for the online gambling of around 200 000 Spaniards who wagered around Euro 575 million over the internet in 2009.

General Gambling News Gambling Law & Society News

Login to post a comment:


 
 

Click Here to register a new account

What's going on right now!

4mins ago someone from France, French Republic played Casino Stud Poker

Casino Of The Month

Casino of the Month

Casino Community

Share this page on:
Follow LCB on:
Follow LCB

In the last 24h

Totals

  • New Members
    25
  • Members Online
    390
  • Guests
    1,546
Highest Community Rated Online Casinos
Guts Casino
  (261 Ratings)
32 Red Casino
  (501 Ratings)
Club USA Casino
  (370 Ratings)
Mr Green Casino
  (366 Ratings)
Buzzluck Casino
  (239 Ratings)
Lucky Red Casino
  (286 Ratings)
Videoslots.com
  (232 Ratings)
Bet365 Games
  (240 Ratings)
CasinoRoom
  (230 Ratings)
Unibet Casino
  (213 Ratings)
NextCasino
  (230 Ratings)
Raging Bull
  (162 Ratings)
CasinoLuck
  (304 Ratings)
SlotsMillion
  (151 Ratings)
Betsson Casino
  (304 Ratings)
TradaCasino
  (90 Ratings)
Betsafe Casino
  (281 Ratings)
Redbet Casino
  (219 Ratings)
Vera John Casino
  (241 Ratings)
ComeOn Casino
  (334 Ratings)
Casino Extreme
  (250 Ratings)
Thrills Casino
  (224 Ratings)
Ladbrokes Casino
  (193 Ratings)
Slotland
  (407 Ratings)
InterCasino
  (188 Ratings)
Bet365 Casino
  (482 Ratings)
Slotty Vegas
  (163 Ratings)
Win A Day Casino
  (437 Ratings)
Betfair Casino
  (296 Ratings)
Intertops Red Casino
  (168 Ratings)


Follow LCB on Facebook Follow LCB on Twitter Follow LCB on Pinterest Follow LCB on Google plus