dgfev.de has recently mentioned that Gibraltar is one of the best places to run gambling business. Is it really so or our German partners are far from being truthful? Let’s have a closer look and find it out.
Gibraltar is a common law jurisdiction, carrying out its own legislation. The House of Assembly of Gibraltar executes legislative function in all the areas of local government, including taxation, management of companies, financial services and gaming activities. Such status, existing regulatory standards and competitive tax regime created quite favorable conditions for the successful development of the gambling business in Gibraltar.
Starting licensing gambling companies
First gambling companies have resorted to licensing in Gibraltar in the beginning of 90s, when betting duties in Great Britain rose sharply. Gibraltar used the situation to create a legislative atmosphere that helped to develop a positive view of Gibraltar and eventually attract more licensees.
And although with a reduction in the duty on betting in Britain, many companies have returned to the licensing of the Kingdom, though Gibraltar has not handed over its positions – gambling here acquired the character of constant activity (in general, Gibraltar offshore zone is oftentimes recognized as ideal for gaming). Due to the flexible legislation the establishment many European providers such as Ladbrokes, Victor Chandler, 888.com and PartyGaming made their choice in favor of acquiring a local license.
The rapid development of large companies stressed the importance of the gaming industry for the economy of Gibraltar, as well as created a platform for quotation of securities on the London Stock Exchange.
Issuing gambling licenses
The region has started issuing gambling licenses issued since 1998; though finally, the licensing process has been debugged in 2005, with the adoption of the Act on gambling. Local gambling legislation ensures the preservation of Gibraltar’s reputation of one of the most prestigious and economically attractive offshore jurisdictions.
For consideration of an application for a gambling license allowed only those companies that have already proved themselves in the gaming market, and are licensed in jurisdictions with high reputation. This is the tricky case of Gibraltar – aspiring businesses have virtually no chances to run business under a local jurisdiction, this is the crucial point missed by DGFEV. The license is issued for 5 years. Initial fee when applying is not required, but the annual cost of renewing the license is £ 2 thousand. Depending on the type of gambling and the structure of the cost of gambling licenses range from $30,000.
Gambling taxation in Gibraltar is set at a level of as little as 1% of revenues. However, it should not exceed 425,000 GBP ($670,000) per year and not must not be less than 85,000 GBP ($133,000) annually. Online casino bookmakers and betting exchanges tax is levied on the same basis.
In addition, Gibraltar has no agreements on avoidance of double taxation with any country in the world. Therefore, the local tax authorities do not share information with their colleagues from other countries. By some sort of cons of the offshore the membership in the EU and strict banking laws are oftentimes, which do not favor the capitals of dubious origin and illegal financial transactions. In addition, the legislation of Gibraltar reveals information about the directors of the company.