Online Gambling Suit in UK Referred to EU Court

A suit by Gibraltar-based online gambling site’s challenging new gambling regulations in the UK has been referred to European Union courts. The Gibraltar Betting and Gaming Association has challenged the UK’s new “point of consumption” tax.

A lawsuit challenging the UK’s new online gambling taxes by Gibraltar-based online gambling sites has been referred to the European Union’s Court of Justice by the UK’s High Court.

The High Court ruled that the Luxembourg-based Court of Justice of the European Union should decide on the issues raised by the Gibraltar Betting and Gaming Association.

The UK introduced a point of consumption tax in December, imposing a 15 percent tax on all online gambling profits generated in the UK.

The association challenged the tax through the British courts. The referral means the tax could be found to be unlawful by the EU court, if it is found that the tax reduces competition within the EU.