..

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't Bet the Cavs From Virginia

Can't Bet the Cavs From Virginia

Sports betting officially launched in the commonwealth of Virginia Thursday, courtesy of FanDuel.  You just can't bet your beloved Cavaliers there.  A number of offshore sportsbooks the likes of BetUS are still accessible from Virginia and do take bets on the Cavs, so no worries there.

Bill to Expand Sports Gambling Introduced in Washington State Legislature

Bill to Expand Sports Gambling Introduced in Washington State Legislature

A bill to expand sports gambling in Washington state beyond Indian casinos and into privately-owned card rooms has been introduced in the state Legislature for the second consecutive year.

Indiana Casino Bigwig Fights State Over Ouster Order

Indiana Casino Bigwig Fights State Over Ouster Order

A longtime heavyweight in Indiana’s gambling industry is fighting state regulators’ attempts to force him to give up his stake in a Lake Michigan casino and a $300 million new casino project in Gary.

Brian Urlacher’s Brother Pardoned by Trump: Ran Illegal Sportsbook

Brian Urlacher’s Brother Pardoned by Trump: Ran Illegal Sportsbook

The brother of Chicago Bears Hall of Fame linebacker Brian Urlacher has been pardoned of federal charges that he recruited for a multimillion-dollar illegal offshore gambling ring.

Pro Sports Bettor Billy Walters Pardoned by Trump in Final Hour

Pro Sports Bettor Billy Walters Pardoned by Trump in Final Hour

William “Billy″ T. Walters, the retired professional sports bettor and businessman, expressed gratitude to President Donald Trump for granting him clemency and regaining his freedom while continuing to maintain his innocence in a highly publicized insider-trading case.

Syndicate