The new taxation regime has already taken effect and Minister Isola said that companies that would be most affected by it had been warned well in advance to prepare to it.
The politician elaborated that they have been considering different models to replace Gibraltar’s “flat rate” on gambling that companies have paid since 2005, when the British Overseas Territory adopted its Gambling Act.
Under the new regime, B2C gambling companies will pay a 0.15% tax on their annual gross receipts. The tax applies to both sports betting and casino gaming operators. These used to pay a 1% tax. Turnover was the tax base for sports betting companies, while casino operators were taxed at 1% of their gross gaming yield.
In addition, new annual license fees have been introduced by the Gibraltar government. B2B companies will have to pay £85,000 for each license they hold, while B2C companies will annually pay £100,000 for each of their licenses. The fees are substantially higher than the ones previously charged, the Gaming Minister admitted.
Isola also acknowledged that there would be both “winner and losers” as a result from the new regime, but he ensured that the ones most affected were warned and provided with reasons for the changes well in advance.
Source: GMB / Casino News Daily
