The new Point of Consumption Tax proposed by the UK government is set to be delayed until November after a legal challenge was launched by the Gibraltar Betting and Gaming Association (GBGA).
The new tax was given the green light by the UK government as part of the Gambling (Licensing and Advertising) Act 2014 and was introduced as a way of preventing gambling firms located outside the UK from avoiding paying the same tax as gambling firms based inside the UK when offering a product to UK players.
The tax was initially scheduled to be introduced on Wednesday 1st October, 2014 but the appeal by the GBGA means that it will be delayed from becoming law until at least the start of November and possibly beyond depending on legal proceedings.
In August, a statement by the GBGA claimed “It is an illegitimate, disproportionate and discriminatory interference with the right to free movement of services guaranteed by Article 56 TFEU, and is irrational.”
In response, the UK Department for Culture, Media and Sport stated “We remain fully confident of our case, and of the significant benefits to consumer protection that the Act will bring. However to allow the judge to reach his judgement without undue time pressure we will be taking the necessary steps to postpone the Act coming into force for one month.”
The impending introduction of the new Point of Consumption Tax has already seen a number of firms exit the UK market with Go Wild Casino just one example having sold their customer database to rival online casino 32Red Casino.