 | Director |
 | Contact Neil Rumford |
| Gaming |
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In Gibraltar, the remote gambling industry started in the mid 1990’s, with call centres operated by Ladbrokes and Victor Chandler. With increased use of the internet the industry has swiftly developed, with gaming companies currently employing around 10% of the workforce in Gibraltar. At present there are 20 licensed operators, with licences mostly issued for fixed-odds and casino operations and one licence in issue for spread betting. Licensed operators include three listed companies, two major subsidiaries of a listed company as well as other leading names in the industry. Gaming tax on remote fixed-odds betting is levied at 1% of turnover. For internet casinos, tax is levied at 1% of the gaming yield and 1% of rake in the case of poker operators. In all cases, there is at time of writing a minimum tax payable of £85,000 and a cap of £425,000 of tax payable per annum, per licence. Regarding corporation tax, Gibraltar is undergoing a transition to a low tax jurisdiction, with a tax rate of 10% from 1 January 2011, and which is applicable now for new start-ups (subject to conditions). Gibraltar forms part of the European Union and is accordingly required to implement EU directives. However, it does not have to comply with EU rules on Harmonisation of Turnover Taxes (there is no VAT in Gibraltar), Common Customs Tariff or the Common Agricultural Policy. The Gambling Act 2005 in Gibraltar provides a streamlined licensing and regulatory framework for the industry, with specific provision for the requirements of internet gambling. A Code of Practice for the industry provides interpretive guidance in respect of parts of the Act. Requirements cover areas such as responsible gambling, registration of participants, security and integrity of equipment, provision of audited accounts, confidentiality, anti-money laundering, software, information on websites, advertising and procedures in the event of aborted transactions. The issuing of Remote Gambling licences is the responsibility of the Licensing Authority, which is also responsible for the renewal, suspension or revocation where required. The Gambling Commissioner is responsible for ensuring that licensees’ conduct is in accordance with the terms of their licences, provisions made by or under the Gambling Act and in such a manner so as to maintain the good reputation of Gibraltar. The Licensing Authority will only consider licensing what it regards as “blue chip” companies with a proven track record in gaming, already licensed in a reputable jurisdiction of good financial standing and with a realistic business plan. Licensees are required to physically operate and be managed in Gibraltar. |