Just weeks after the rejection of its first challenge to the new U.K. Gambling (Licencing and Advertising) Act by the U.K. High Court, the Gibraltar Betting and Gambling Association (GBGA) is filing a second challenge.
The U.K. Gambling Act, approved by Parliament in March, dictates that all remote online gambling operators register for a licence with the U.K. Gambling Commission. The licence would come with a 15 percent point-of-consumption tax on all profits from operations within the U.K., among other restrictions. Though set to take effect on Oct. 1, that date was pushed to Nov. 1 after the GBGA’s first legal challenge.
The first challenge, which was later dismissed by Justice Nicholas Green, claimed that the U.K. had no right to tax offshore businesses in the European Union.
“In relation to the issues arising, I have concluded that the claimant has not established that the new regime is unlawful under EU or domestic law,” said Justice Green at the time.
This second challenge claims that the new point-of-consumption tax “breaches Article 56 of the Treaty on the Functioning of the European Union (TFEU) in that it amounts to a restriction on the free movement of services.”
In an interview with Totally Gaming, GBGA chief executive Peter Howitt spoke about the new challenge.
“Mr Justice Green stated that raising revenues are not a justified reason under Article 56,” explained Howitt. “The fact is that this tax regime has no legitimate purpose. Moreover, the tax is discriminatory and European law supports our position.”
“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,” he added. “Given the risk to consumers, we have asked for an expedited hearing.”
Whether this second legal challenge will delay the implementation of the U.K. Gambling Act on Nov. 1 or the point-of-consumption tax on Dec. 1 remains to be seen.
