UK tax 'counter productive' says Gibraltar regulator
Gibraltar gambling commissioner Phill Brear says UK government's tax proposals could damage the UK gambling industry
Gibraltar’s gambling commissioner has labelled the UK government’s attempt to introduce new regulation on the remote gambling industry as “counter-productive”.
Last week, the UK Treasury released a draft Bill which laid out plans to tax all remote gaming revenues derived from UK customers at 15% from 1 December 2014.
However, Phill Brear told eGaming Review the government proposals illustrate a lack of understanding about e-commerce which will only serve to damage existing UK companies.
“[The proposals] will dilute and damage existing UK companies, jobs and investment, and they are a poor deal for consumers as they increase prices while diminishing the quality and safety of the UK market,” he said.
Brear also said the Bill failed to tackle the growing issue of unlicensed regulators which he feels is having a damaging impact on licensed suppliers.
He said the proposals could lead to high value customers being “picked-off’ by unlicensed operators able to provide improved offers and prices. Brear said this would force UK-based operators to relocate staff and investment away from the UK in order to compete.
Despite his comments, Brear stressed the Gibraltar Gambling Commission will continue to work with the UK regulator in developing its licensing plans.
The UK Gambling Commission estimates the UK remote gambling market is worth over £2bn per year and estimated that the new point of consumption tax will extract around £300m per year in additional tax revenues from overseas operators.
A challenge to the Bill is expected to come in the form of the Gibraltar Betting and Gaming Association. In June it was revealed 23 of its members contributed more than £500,000 in order to mount a legal challenge against the proposals.