Lower gambling tax in Gibraltar amidst ongoing Brexit uncertainty
Whilst tricky Brexit negotiations continue, Gibraltar has upped its license fees and lowered its gross revenue taxes for gambling businesses, in an attempt to convince operators to stay.
According to Gibraltar’s Minister for Financial Services and Gaming, Albert Isola, these amendments were effective as of his budget announcement earlier in the week.
This announcement will see B2C gambling companies, including sports betting services and casino gaming firms, pay 0.15% tax on annual gross revenue. This represents a 0.75% drop on the previous rate.
Isola said that the government had considered many ways in which it could amend the previous ‘flat rate’ gambling charges that had been instated in 2005.
He accepted that the annual license fees have increased significantly, with every B2C license set to cost around £100,000 ($132,000) and every B2B license to cost around £85,000 ($112,000).
According to the minister, there are some winners and some losers, as with any new tax scheme.
Isola explained that firms likely to experience the greatest impact had been officially warned of the impending tax and licensing update, and of the reasons behind it.
The Gibraltar-based remote gambling industry is, he said, the largest in Europe, and potentially the world. It does, however, find itself swimming upstream. According to Isola, this change in current is caused by uncertainties around Brexit and EU market access.
Presently, gambling firms in Gibraltar hold around 30 remote licenses.
Further, the minister explained that the Gambling Division is in close talks with the Government and the Gibraltar Financial Service Commission about the use of DLT and cryptocurrency in gambling, and about ways in which these can boost the economy and young gambling businesses.