Gibraltar Gambling Jurisdiction
Gibraltar which holds strategic significance was ceded to Great Britain by Spain in 1713 in the Treaty of Utrecht.
In 1830 the British garrison was officially declared a colony. In the 1967 and 2002 referendums Gibraltarians ignored Spanish pressure and overwhelmingly voted to remain under British rule.
Gibraltar is located at the south end of the Iberian Peninsula (Spain), a rocky peninsula linking the Mediterranean Sea and the North Atlantic Ocean. With its mild winters and warm summers Gibraltar is a perfect destination for tourists. It’s also known as the internet gambling centre of Europe. It is the only United Kingdom overseas territory that forms part of the European Union. In addition the Gibraltar jurisdiction is covered by the new U.K. Gaming Act. Both these associations afford greater trustworthiness and recognition to internet gambling sites that are licensed in Gibraltar.
Gibraltar plays host to approximately 270 internet gaming sites which employs around 2,000 staff. The gambling industry is currently this region’s largest employer and tenant.
In 1998 the government of Gibraltar encouraged many operators to set up their offices in this region. Presently Gibraltar has many licensed sportsbooks, online casinos, and betting establishments. One of the key aspects that count in favour of Gibraltar it only grants licenses to internet casinos that have a decent track record and whose software is regularly tested. No license fees are levied, however a yearly fee of £2,000 is charged.
Internet gambling operators previously paid only 1% of their turnover to tax. However 2010 saw an increase in its tax rate by tenfold, from 1% to 10%. The reason for this is so that the industry’s taxation would be in line with other businesses. EUR 500,000 is the tax gaming cap per annum. Businesses that are registered in Gibraltar don’t have to pay Value Added Tax (VAT), one of the key aspects why internet gambling sites prefer Gibraltar as their number one choice to launch their operations from.
The Gibraltar Regulatory authority is responsible for drafting various regulatory policies such as the evaluation of new license applications, investigating breach of license terms and conditions and to act as arbitrator between internet casinos and players. A potential licensee must fulfil two very important requirements.
The applicant must produce a certificate that confirms the integrity of the software from a reputable inspection agency. The following agencies that have been approved by the Gibraltar Regulatory Authority for this purpose are Technical Systems Testing, eCOGRA, iTech Labs Australia and Gaming Associates Pty Ltd. It’s essential that the applicants also display their commitment toward responsible gambling. Internet casinos must provide links from their sites to problem gambling help sites; they must also include self-exclusion features in their software and impose the necessary measures that combat underage gambling.[addtoany]