As the online casino industry grows and more companies are trying to reach the British customers, Gibraltar has become an increasingly common destination for license-searchers. Great Britain itself has become the top location for online casino operators since they were pushed out of the Caribbean territories of St Thomas, Panama, and Costa Rica. Noting this, Prime Minister David Cameron has decided to create a new tax rate for all gamblers who chose to use casino sites with Gibraltar licenses.
The British government has decided on a plan to raise the tax rate on wagers placed at online casinos under Gibraltar regulation from just one percent to a whopping 15%! Gibraltar officials are getting riled up over this.
Gambling Analyst Tre Simmons notes that “Internet gambling has become a premiere industry in the world, and Gibraltar has a large portion of licensed online companies in their jurisdiction. If this plan goes through, it has the potential to crippler Gibraltar. Companies would run from the area with a tax rate that high.”
This new plan also has a part that states that, henceforth, any new company seeking a Gibraltar license will not only require a local license, but also a British license if they desire accepting wagers from British customers.
In addition, Gibraltar officials, while still allowed to make their own laws in regards to regulation changes in online gambling, are now also held accountable for British laws. These new taxation laws are getting strong negative reactions. Gibraltar government head, Fabian Picardo, put out the statement: “The model of prohibition and higher taxes has been tried before. If the UK takes the tax approach that it is proposing, it would be devastating for the UK itself.”
Due to the development of technology and the low house advantages at online casinos, this online gambling industry has far surpassed the land based casinos in recent years, which has led to a call for change from the classic, offline casino operators. The government of Great Britain is hoping to create a balance between the online and offline casino industries.
For those gamblers out there who are wondering what famous online casinos are licensed in Gibraltar and whether they will be hit by these taxes, here is a list of some of the more well known and trusted online casinos with Gibraltar licenses:
- Eurogrand Online Casino
- Ladbrokes Online Casino
- 32Red Online Casino
- Mansion Online Casino
Keep your eye out for future tax increase updates and make sure you’re aware of the changes in the industry!