Much respect to Floyd Senior still getting a few rounds in at the gym. I hope I can still train at that age. Respect.
-Conor McGregor as he poked fun at Floyd Mayweather Jr. 
14th June 2017  
 
  Pay up, Gibraltar!
 
The Story

The Court of Justice for the European Union (CJEU) has issued its preliminary ruling which rejected efforts to exempt Gibraltar-licensed online gambling operators from paying the UK’s online point of consumption tax.

 

Let’s go back to 2015.

That was the year when Gibraltar Betting and Gaming Association (GBGA) challenged the UK government’s rule requiring all UK-facing operators to pay 15% tax on online gambling revenue obtained from UK punters.  GBGA said that the rule is discriminatory against Gibraltar-based operators. The GBGA initially won against the UK government in the UK’s High Court.

 

But the European Union’s top court begged to differ.

The CJEU, in its preliminary ruling, said that while Gibraltar was technically not part of the United Kingdom, it regarded a dispute between Gibraltar and the UK as “a situation confined in all respects within a single Member State.” Thus, the GBGA cannot invoke Article 56 of the Treaty of the Functioning of the European Union (TFEU) which is only applicable between EU member states. Article 56, which is the meat of GBGA’s argument, bars EU member states from imposing restrictions on the movement of goods and services between member states, unless the restrictions can be demonstrated to be intended for the purpose of consumer protection.

 

What’s next for Gibraltar?

While the CJEU is yet to release a final ruling, the decision might affect the viability of Gibraltar’s online industry, especially after the Brexit.

 

Takeaway

Gibraltar should brace for hard times as the once popular hub for UK-facing operators may be forced to pay up taxes for the UK government.

 
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Good luck to all those who will be participating at the Asian Poker Tour Macau 2017! It kicks off on June 14 with a HKD 300,000 Guaranteed Opening Event and will be held until June 22 at the Babylon Casino. 

 
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