Operators may get a refund
The High Court of England and Wales has ruled that the European Court of Justice must rule on the legality of taxes imposed by the UK on overseas gaming operators, according to a report on iGamingbusiness.com.
Last October, the Gibraltar Betting and Gaming Association retained the law firm Olswang to review the new tax regime. GBGA claimed the tax was discriminatory and restricted the free movement of services, which is guaranteed by the Treaty on the Functioning of the EU. The government of Gibraltar supported the legal challenge.
The case will now go to the ECJ. If it rules in favor of the association and the Gibraltar government, the taxes that have been paid may have to be returned to the operators.
“The case raises important questions for the future of online gambling in the UK,” said Dan Tench, head of public law at Olswang. “It also touches on broader issues about the UK government’s ability to tax businesses outside its jurisdiction. We look forward to these issues being considered by the Court of Justice of the EU.”
