..

Gibraltar Raises Tax Levies On Internet Gambling Firms

Written by:
Aaron Goldstein
Published on:
Dec/22/2010
Gibraltar

The Internet gambling haven of Gibraltar, long known as a tax haven, has decided to raise tax levies.  Beginning in 2011, it will impose a standard 10 percent tax.

In recent years, Gibraltar has only charged a 1 percent tax duty with a maximum charge of €500,000 (£425,000) a year.

Companies that recently left the United Kingdom for more attractive tax rates in the British territory will likely be unaffected.  William Hill made the move this year but is already believed to be paying the 10 percent tax.  Businesses that have existed on the island for a longer period of time, such as Victor Chandler, will need to adapt.

John Shepherd, a spokesman for Gibraltar-based betting firm Partygaming, told the Telegraph that although the new rate would mean a large jump in tax for some companies, he did not think it would stop companies from setting up offshore operations in Gibraltar. “We’ve known about this for some time, and we’ve factored it in," he said. "The tax is still going to be very low.”

After moving its telephone-based business to Gibraltar over the summer, Ralph Topping, Chief Executive of William Hill, commented: “This significant change to our Telephone business is a response to the challenge of competing with betting exchanges and offshore telebetting operators, all of whom have benefited from significant cost and tax advantages over UK bookmakers. This has made it impossible for our existing business to compete profitably from the UK.”

William Hill expected to save between £4 and £7 million each year in costs by moving to Gibraltar.  Last year, the firm paid £265 million in UK taxes and levies.

- Aaron Goldstein, Gambling911.com

Gambling News

Can I Bet With BetOnline From Washington State?

Can I Bet With BetOnline From Washington State?

BetOnline is accessible from Washington State and offers some of the best welcome bonuses in the business.

Gambling and Sports Betting News March 26, 2020: Still No Mobile Sports Betting in NY

New York Governor Andrew Cuomo has put the kibosh on mobile sports betting for 2020.

CEOs to Share Post-COVID-19 Vision at Industry’s Biggest Online Conference

CEOs to Share Post-COVID-19 Vision at Industry’s Biggest Online Conference

SBC Events is launching the SBC Digital Summit - the biggest ever online conference in the betting & gaming industry as it comes to terms with the deep impact of the coronavirus pandemic.

How Blockchain Technology is Changing the Online Gambling Industry

How Blockchain Technology is Changing the Online Gambling Industry

The introduction of internet usage in the gambling industry was a game-changer. Casino owners took advantage and seamlessly integrated the latest technology to improve the user experience.

William Hill Lays Off Half Its Workforce

William Hill Lays Off Half Its Workforce

William Hill has laid off more than half of its 1000 plus US workforce in the midst of the coronavirus pandemic.  The changes are intended to be temporary with Hill expecting to bring back most of the employees once sports resume.

Syndicate