Gibraltar operators to press ahead with UK legal challenge
Plans to regulate UK-facing operators on Point of Consumption basis set for judicial review
The UK government’s decision to implement a Point of Consumption (PoC) regulatory model could be set for a challenge in the courts as eGaming Review understands the Gibraltar Betting and Gaming Association (GBGA) is to make good on its threat to launch a judicial review.
The GBGA, which represents the interests of more than 20 Gibraltar-based online gaming operators, is steadfast in its opposition to a framework which will see the UK Gambling Commission regulate UK-facing operators and suppliers from across the globe.
The Gambling Bill is set to become law in the coming days, with the UK government set to introduce a 15% tax on all remote gaming gross profits in December, and this final approval is expected to trigger the GBGA’s legal process.
Speaking to eGaming Review, Brian Mattingley, chief executive of Gibraltar-licensed 888, said the Gibraltar-based operators were united in opposition to the regulatory framework and its potential violation of European law.
“We are sat with the GBGA and all its members and working with them [to see] whether we believe it’s genuinely for the good of the consumer, as if it’s not good for the consumer you can’t employ regulation just enabling you to collect tax “ that’s against the European directives,” Mattingley said.
In the event of a legal challenge, it will fall on the government to decide whether or not it will press ahead with the remote gambling reforms as planned or wait for a legal verdict to be made, however, Mattingley was hopeful the timetable for implementation would be postponed.
“We are working with our colleagues to explore whatever avenues we can,” Mattingley said. “But if we get a year’s delay, well that’d be heaven.”
Other members of the GBGA include heavyweights such as bet365, William Hill, Ladbrokes and Gala Coral.
The prospect of a legal battle has long been mooted and GBGA members last year started a fund in order to pay the legal costs. eGR understands that London-headquartered law firm Olswang has been tasked with making its case.
In November, GBGA chief executive Peter Hewitt was critical of the PoC regulatory regime when called to give oral evidence during the Gambling Bill’s parliamentary committee stage.
“Our concern is that you will in fact be damaging UK consumer interests and the regulatory reputation of the UK with this Bill and it’s not necessary to achieve the wider policy and political objectives the UK wants to achieve,” Hewitt told MPs at the time.
Both the GBGA and the Gambling Commission declined to comment on this article.