UK Tax Break Could Affect Gibraltar Betting

Panorama

19 October 2000

This story is reproduced by kind permission of Panorama at http://www.panorama.gi

An expected reduction in the UK's betting tax could adversely affect the growing Gibraltar betting industry. A statement is due in Chancellor Gordon Brown's pre-Budget statement at the end of the month. With British betting experiencing a downtrend, the Chancellor is committed to doing something about it, in an attempt to reverse the trend.

In the last three years, Gibraltar has seen impressive growth in the offshore betting industry, which now provides over 500 jobs. And the number of bookies on the Rock could increase if the Government lifted its selective policy which has already resulted in ten formal applications being refused.

"The government's policy is to limit the number of gaming licences generally, and to favourably consider applications only from reputable and experienced operators who have been licensed in other countries and who have a proven track record backed by sufficient financial resources and expertise," says the chief minister Peter Caruana.

UK betting turnover has fallen by one percent since March 31 when it was expected to rise by two per cent, says the Daily Mail, which adds that there are indications from Customs and Excise that changes are imminent to counteract the increasing flow of betting to low tax regimes overseas, of which Gibraltar is one.

Ladbroke has 60,000 UK-based telephone clients in Gibraltar, each paying three per cent 'tax'. Victor Chandler is the largest offshore operator here, out of a total of nine. The upsurge in betting now makes a valuable contribution to the Gibraltar economy, which cannot really afford any large exodus from current operators. However, having set up here, it is thought that a competitive reduction in UK betting tax would be needed before anyone would start to seriously think in making a move.

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