Gibraltar to revamp egaming tax structure
Gaming minister says he will work with operators to “modernise and consolidate” the current 1% levy
The Gibraltar government has announced plans to restructure the jurisdiction’s egaming tax system.
In his budget address to parliament this week, gaming minister Albert Isola said the end of the GBGA PoC tax case had created an opportunity to modernise the current system.
“I plan to discuss with the industry in months to come how we can both modernise and consolidate the current charges into a simpler and more consistent model of taxation and fees,” he said.
Under the current system, operators offering sports betting are required to pay 1% of annual turnover, with tax capped at £425,000 annually, while casino providers pay 1% of gross profit.
Gambling Commissioner Phill Brear said the government also intends to review the industry’s legislative and cost framework.
Gibraltar Parliament. Credit: Nathan Harig
“These are big exercises that will need considerable work with stakeholders,” Brear added.
Speaking to EGR Intel, Isola said he would aim to complete the exercise and legislative review by April 2018.
“Whilst the Brexit process creates uncertainty, in its final form we believe it will create opportunity for Gibraltar, and we have the resources and flexibility to take advantage of those opportunities,” he added
Budget figures revealed the government scooped £14m in gambling charges for the 12 months to June 2017.
Isola told the House the government’s gaming revenue was increasing significantly as the local industry continued to grow.
He said four new licences were in the pipeline, despite the number of current licensees dropping following the Ladbrokes Coral merger and consolidation of Paddy Power Betfair’s Gibraltar office.
Additionally, Isola confirmed that no locally based firms had plans to relocate despite Brexit scares.
The government reported £0.81m had been spent on gambling regulation and “oversight”.