U.K. Gambling Act Challenge Rejected by Royal Courts

This past Friday, the Royal Courts of Justice in London rejected a challenge issued by the Gibraltar Betting and Gambling Association (GBGA) against the U.K. Gambling Act 2014.

The act requires all remote online gambling operators to acquire a licence with the U.K. Gambling Commission. Operators would also have to pay a 15 percent point-of-consumption tax on all profits from U.K. operations. This legislation was approved by Parliament in March and set to take effect on Oct. 1. The challenge from the GBGA, however, pushed the implementation date to Nov. 1.

The organization’s challenge claimed that the act was “illegitimate, disproportionate and discriminatory interference with the right to free movement of services guaranteed by Article 56 of the Treaty of the Functioning of the European Union.”

Justice Nicholas Green disagreed and ruled that the GBGA did not sufficiently prove that the U.K. Gambling Act 2014 was in violation of any U.K. or European Union (EU) law.

“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,” he said.

He further dismissed concerns over the legislation’s impact over operators in Gibraltar, a rise of unlicenced operators, or damage to consumer protection. He ruled that the U.K. government had addressed these concerns within the confines of the legislation.

The passporting proposal presented by the GBGA was also refuted by Green, who argued that the idea failed to achieve the act’s goals “without significant bureaucracy or extra cost.”

Considering that Gibraltar is also not a full member of the European Union, Green also added that the law did not conflict with Article 56.

After the verdict, a spokesperson for the GBGA issued the following statement:

“We maintain this law is not in the best interests of consumers, the industry and the regulator itself, and that there are more effective ways of dealing with the challenges of regulation and competition in this sector,” said the spokesperson.

As of publishing, the GBGA has expressed no interest in appealing the decision. The act is set to be enforced on Nov. 1.