Gibraltar gambling tax rate cut to 0.15%
New regime will split B2B and B2C licences and have a fixed tax rate for both casino and sports betting
The Gibraltar government has announced a 0.85% cut to gambling taxes, reducing annual rates to 0.15% of gross revenue for both casino and sports betting.
According to the Gambling Act 2005, fixed odds and exchange betting was taxed at 1% of turnover up to £42.5m, capped at £425,000 a year, while casino was taxed at 1% of gross profit.
The new regime, revealed by minister for gaming, Albert Isola in yesterday’s budget speech will also include separate licences for B2C and B2B, similar to Malta’s new framework.
Licence fees will rise to £100,000 per B2C licence and £85,000 for B2B, once the new framework is implemented in July.
Speaking in Parliament Isola said: “As with any changes in tax modelling, there are ‘winners and losers’.
“My staff have been assiduous in ensuring those who are likely to pay substantially more have been kept abreast of developments, the reasons for the changes, and how they will impact on them,” he added.
Isola also addressed the local industry’s ongoing Brexit concerns, reassuring operators that losing access to EU markets as a result of a hard Brexit was unlikely.
“We are working closely with our operators, who are most immediately exposed to ‘Brexit risk’, to construct a regulatory and licensing framework that is right for them and right for Gibraltar; in terms of regulatory control and continued economic benefits for Gibraltar and all those who live or work here” he said.
“Our engagements have given us a strong degree of confidence that whilst operators may need to be flexible about the contingent location of some of their transactional technology, their people, both management and staff, prefer to be anchored in Gibraltar.”
Isola’s comments follow announcements from bet365 and William Hill who plan to open new offices in Malta.