A UK High Court has struck down a challenge to Britain’s new online gambling rules from online gambling forms based in Gibraltar.
The UK hopes to gain a tighter control of online gambling by requiring licensing of any firm accepting bets in Britain.
But large British bookmakers such as William Hill and Ladbrokes have moved their online operations offshore to places like Gibraltar in order to take advantage of lower local taxes.
The new rules could increase taxes on online sites by about 300 million pounds. The decision caused a decline in both William Hill and Ladbrokes stocks. The new taxes—scheduled to begin December 1—require online companies to pay a 15 percent tax on online winnings from bets made by customers based in Britain.
The licenses were delayed for a month from Oct. 1 after the Gibraltar Betting and Gaming Association brought a challenge charging the new rules violated European law guaranteeing the free movement of services.
A High Court ruling dismissed the appeal saying the UK Parliament was clearly within its rights to act as it did.
“We remain concerned the UK regulator will find it difficult to hold companies to account in jurisdictions outside of the EU where it has no legal powers and common legal framework or culture,” a GBGA statement read after the ruling. The association called for an EU framework on online gambling legislation.
The association, however, did not say whether it plans to appeal the ruling.
