The Gibraltar Betting and Gaming Association (GBGA) has twice challenged the UK Gambling Commission’s new regulations, requiring licensing and a 15% point of consumption tax for all online gambling sites that entertain UK players. Subsequently, the GBGA has failed in both attempts. However, according to CEO Peter Howitt, his organization’s efforts to eradicate the new system are not over.
The UK Gambling (Licensing and Advertising) Act was passed by the House of Lords in March of this year, receiving the royal stamp of approval two months later. Slated to go into effect on October 1st, the GBGA was able to delay enforcement by challenging the bill in the high courts on the grounds that it furnished the UK with a gratuitous advantage over foreign competitors and lacked suitable protections for consumers.
The first challenge was rejected on October 10th, resulting in the enactment of the new UK online gambling licensing and POC tax law being delayed until November 1st. The second attempt failed as well when the courts found the regulatory amendments were “neither a disproportionate restriction on the freedom under Article 56 TFEU nor contrary to domestic law.”
In a recent interview with eGaming Review, Howitt was asked the GBGA’s reaction to the recently implemented amendments, how they are affecting Gibraltar’s business relations and the organization’s future plans in that regard.
Howitt said that the GBGA is not prepared to give up on its legal dispute with the UK. He revealed that the Gibraltar Betting and Gaming Association was granted the opportunity to challenge the new UK online gambling regulations once more in 2015. The CEO was hesitant to offer any further details on the subject, but did shed some surprising light on the current circumstances on the British Overseas Territory’s online gambling industry.
“We are seeing a bit of consolidation in the gambling hub space in terms of jurisdictions and I think Gibraltar is going to do well as there are factors here that don’t apply in others jurisdictions.” Howitt went on to explain that, “There’s a large service sector with more than 3,000 highly skilled people working in the online gambling sector and that puts you in a good position when you are trying to encourage new businesses to come to Gibraltar.”
Furthermore, Howitt said, “Gibraltar is still very supportive of the regulated sector and I think perhaps the way the UK has gone about recent changes to regulation and tax has destabilized the confidence in the UK for some operators.” The GBGA CEO rationalized that industry competitors considering where to invest as a business would prefer to “invest in a place that will invest in you”. He said that he believes “many operators aren’t getting that feeling from UK.”
Howitt told eGaming Review that he feels the debate over online gambling is intensifying in the UK, but that current political agendas pose a danger to the industry. In Howitt’s opinion, “the discussion becomes all about winning votes rather than sensible policy”, and that operators need to take a more proactive stance on the issue, acting on the “genuine concerns” being raised rather than simply complaining about the new regulations. Howitt assured everyone that, “we as an Association are certainly going to do more to help influence the agenda and be seen as a responsible stakeholder.”