Gibraltar’s finance and gaming minister Albert Isola has released details of important changes to online gambling fees and tax duties in the run up to this week’s budget for the British enclave on the Spanish peninsula.
The government has acknowledged that it has concerns regarding the market consequences of Brexit despite the proposed transitional period, and regarding the uncertainty surrounding the issues, along with the prospect of further industry consolidation..
Isola revealed that the new tax and fees regime entails significantly increased annual licence fees of GBP 100,000 for business-to-consumer licenses and GBP 85,000 for business-to-business licensing. In addition a gambling tax rate of 0.15 percent will be imposed on business-to-consumer annual gross receipts.
The changes are the first since 2005, when the current flat rate gambling charges were imposed. Online sports betting operators currently pay a tax of 1 percent based on annual turnover up to GBP 42.5 million, capped at GBP 425,000 a year, with the minimum annual tax payable set at GBP 85,000. Online casino gaming tax has traditionally been levied at 1 percent of gaming yield or gross profit with the same caps.