UK Treasury confident of defeating GBGA challenge

Britain’s new online gambling tax rate is expected to go ahead as planned on December 1 despite the latest legal challenge by the Gibraltar Betting and Gambling Association (GBGA).

Late last week the GBGA filed for a judicial review (JR) of the 15% online tax rate set to be introduced on December 1 by the UK Treasury.

But in a statement to eGaming Review a spokesman for HMRC, the department responsible for introducing the new tax rate, said they would “robustly defend against the challenge”.

“We are studying the grounds, but are confident the reforms are lawful, proportionate and non-discriminatory,” the spokesman said.

And eGR understands the Treasury is not expecting any delay to the implementation of the tax rate, with December 1 the “go-live” date.

The challenge to the tax rate comes after the GBGA’s attempt to derail Great Britain’s Point of Consumption licensing regime was dismissed in the courts.

But the GBGA said the result of the ruling, which questioned some key aims of the licensing regime, gave it “greater hope on tax” as it felt the “story had changed”.

“We believe this means their real aim is to ensure that UK operators in this market are favoured, at the expense of law abiding and responsible operators outside of the UK,” a GBGA spokesman said to eGR.

Operators active in the British market need to be licensed and regulated by the UK government from 1 November.