Gibraltar chief minister rules out PoC legal action
Fabian Picardo warns draft bill risks pushing consumers to black market operators and says discussions with Treasury are ongoing
Gibraltar’s chief minister Fabian Picardo has ruled out taking legal action against the UK in over the point of consumption (PoC) tax proposals which he says will push customers away from those licensed in the British Overseas Territory.
Picardo urged delegates at a briefing hosted by the Gibraltar government to work alongside Gibraltar rather than against it in order to combat that threat, adding that discussions with the UK Treasury over the bill were ongoing.
Picardo warned that the UK Treasury’s proposed bill, which received its first reading in August, risked pushing customers towards black market operators, who would be able to offer more competitive odds. The legislation proposes a 15% tax on remote gaming revenues derived from UK customers.
“You actually risk pushing your customers away from well-regulated online gaming services provided from responsible jurisdictions like Gibraltar towards those who are operating in less well regulated jurisdictions,” Picardo said.
Gibraltar’s gambling commissioner Phill Brear, who has previously labelled the draft bill as “counter-productive”, backed up Picardo’s comments.
“The chief minister was making clear that the current system works well for the UK, UK consumers, and Gibraltar, whereas what is proposed is a ‘lose, lose, lose’ model that has failed everywhere else it has been applied,” Brear told eGR yesterday.
The UK Treasury has defended the proposals, claiming them to be taking action to ensure that remote gambling operators make a fair contribution to public finances.
“The government will continue to work with industry to ensure that remote gambling operators pay taxes on their profits from UK customers,” a HM Treasury spokesperson told eGaming Review.