EGaming providers do not want to leave Gibraltar

Online gambling providers located in Gibraltar stay committed to the British Overseas Territory in spite of the decision of the UK last month on their membership in the EU.

More than 30 leading online gambling operators found their home in Gibraltar. Among them are such majors as William Hill, Bwin.Party and Ladbrokes. The poll of June 23 revealed the desire if its 32,000 residents to stay as a part of the 28-state trading bloc. Nevertheless, at the UK referendum, 51.9% majority voted for leaving the EU market (the move called “Brexit”). This full break might put online providers on “The Rock” and this will lead to serious challenges for them in supplying their services to the residents of the EU zone like France, Ireland and Germany.

The Financial Services and Gaming Minister for Gibraltar Albert Isola explains that providers on “The Rock” aim to stay committed to the local remote gaming industry with even additional expansion comprising the hiring of extra staff or renting new offices.

“Her Majesty’s Government Of Gibraltar has been working closely with the remote gambling industry in Gibraltar following the “Brexit” vote… and is pleased to confirm that the sector remains strongly committed to its Gibraltar operations,” the statement from Isola declared. “Government has engaged with every operator in Gibraltar as well as with the Gibraltar Gaming And Betting Association to assure them of our support and vision for this sector in the short, medium and long term. This has been universally welcomed and operators have made it clear to us that they remain fully committed to Gibraltar and business continues as usual.”

The territory of 2.6 square miles in the south of Spain has belonged to the UK since 1713 and it has always been considered as a tax paradise for online gambling providers, as they pay only 1% tax on the turnover, which is about $563,210 while their minimum payable limit is $112,600. Furthermore, online providers located in the enclave benefit as they can provide the services to gamblers from the European Union, the privilege that can be prohibited with the full exit from the EU.

“Her Majesty’s Government Of Gibraltar will continue to work with Her Majesty’s Government UK to ensure the best possible outcome from the ongoing discussions in the expectation that there will be little or no change to the current arrangements for those who live and work in or travel to Gibraltar and all the indications are that it really will be “business as usual”,” the statement from Isola declared.

Isola also stressed that the draft of the jurisdiction’s Gambling Act Review, issued earlier this year, is still in its consultation stage and will “definitely be proceeded with and further expanded” so as to assure the regulatory, licensing and tax regimes of the territory to “remain fit for purpose having regard to any new arrangements that Gibraltar may enjoy in the future”.

“While this Government and others believed that staying in the European Union is the better choice for economic development and growth, any move away from the European Union will provide new and different opportunities for our economy and we will ensure these are available to all our commercial sectors and Gibraltar remains a great place to locate a business,” the statement from Isola declared.