A new tax on internet gambling which has the potential to raise around £300m, has received a legal challenge from gambling companies.
The Gibraltar Betting and Gaming Association (GBGA) claims in a submission to the High Court of England and Wales that the new tax rules on gaming are “unlawful and disproportionate” and interfere with the “right to free movement of services” under European Union law.
Under the new tax, due to be introduced in December, companies will be taxed where the bet is made by the better rather than where the company itself is based.
Now betting companies which are based offshore don’t pay gambling taxes, saving them millions of pounds.
Ivor Jones, a gambling analyst at Numis, was quoted as sa...