The Gibraltar Betting and Gaming Association (GBGA), a group dedicated to the rights of online gaming companies based on the Rock, is fighting the amendments. Not only did it refuse to pay the 15% tax, but it also challenged that under new regulations, operators must obtain a separate license from the UK Gambling Commission.
The major worry is that many internet gaming websites and bookies will move back to the United Kingdom, but the organization also raised concerns about how the government planned to regulate firms based all over the world. They feel that if this legislation passes, player protection would be reduced, and an illicit black market online gaming industry may develop in the UK. In July 2015, a legal firm Olswang acting on behalf of the GBGA informed reporters that the case had been referred to the EU Court of Justice.
The legal situation in Gibraltar is focused on the EU Court of Justice, which is considering the challenge to the UK’s point-of-consumption tax. At least 55% of online gambling in the UK takes place on Gibraltar-based servers, suggesting a large exodus of firms back to the UK would have a significant impact on the Gibraltarian economy. Even with last week’s Finance Act from the United Kingdom, however, Gibraltar’s tax incentives remain attractive. The territory has nearly two decades of expertise to draw upon, and it is likely to discover new methods to keep businesses on the Rock for a long time into the future.
How Does the GGC Regulate Online Casinos?
Any regulatory body’s rules for online gambling are usually complicated and all-encompassing. They may, however, be divided into categories that detail exactly what a regulating authority such as the GGC is concerned with and conducts periodic inspections and audits on.
The GGC, for example, regulates in the following areas on a frequent basis at any online casino that it has licensed in Gibraltar.
Online casinos must follow any advertisements for services, bonuses, and special offers that are completely true and accurate as part of their license agreement. This advertising should also be targeted at adults and should never be built in a manner that might appeal to minors.
Finally, all advertising should be directed only at people who live in nations where online gambling is not prohibited.
Payouts of Money
All existing prize money and a reasonable estimate of future projected payouts will be required of online casinos with a GGC license.
Furthermore, online casinos will be expected to make sure that they pay out winnings to customers in accordance with the pre-negotiated terms.
Customer Privacy and Data Security
As a minimum, any new player registering at an online casino with a GGC license in Gibraltar is required to supply basic information. This is to confirm that the potential registrant’s full name, address, and date of birth are accurate.
The gaming company is then required to conduct its due diligence and verify the identification provided by the client.
All online casinos are required to pay tax on their turnover each year. The current rate of taxation for fixed odds betting products is 1% of gross profit, with an upper limit of £425,000 per year and a minimum payment of £85,000 per year.
This tax rate is extremely low when compared to many other gaming regulators, which is one of the reasons why so many online casinos choose it.
Accounts and Audit
Online casinos are obligated to protect their players’ bank account information and all financial transactions, accounts, and processing must be done in Gibraltar.
The online casino also agrees to provide audited financial statements on an annual basis and keep its financing, accounts, and reports in accordance with Gibraltar’s legislation.
All online casinos that are members of the Gibraltar Gaming Commission must run and manage their operations from Gibraltar. All bank accounts used by the Gibraltar business, including those used to store player funds, must all be kept in Gibraltar.
The online casino business may be required at random by the GCC to produce a list of key operational personnel who work and reside in Gibraltar as part of this arrangement.
Codes of Practice
The Gaming Commission of Gibraltar is the regulator for online gambling in Gibraltar. As a result, any licensee of the GCC must consent to and adhere to any modifications to these codes of practice made by the Gaming Commission of Gibraltar.
Anti-Money Laundering Requirements
Another example of a code of practice is the GGC’s anti-money laundering standards, which state that casinos must follow. This code tells how a casino should investigate, report, and deal with suspected money laundering and how to prevent it.
Money laundering is a crime that affects many sectors, particularly online gambling. Gambling is a wonderful method to hide money for criminals, but there are ways that internet casinos may assist in detecting and preventing it.
Remote Technical and Operating Standards
There are 13 regulations in place that any online casino must follow, and more information may be found here. You’ll find standards for licensees to adhere to, such as the Random Number Generator (RNG) and periodic independent testing of the RNG by external laboratories
When looking for an online casino, it is important to consider the data and information security standards. This includes the protection of personal and financial information. Additionally, fair gambling practices, preventing underage gambling, and responsible gambling awareness are important factors to consider.
All gaming machines and betting products used by online casinos licensed by the GGC are subjected to examination by an independent testing facility to ensure that they adhere to the standards set forth by the GGC.
The GGC only allows tests to be conducted by independent test houses that the organization has certified. eCogra, for example, is a business that tests many of the biggest online casinos to verify that they are operating in an equitable manner for their customers.
GGC license holders must use one of the above independent testing companies to inspect their software and equipment for random number generator flaws. These test houses will then communicate the findings with the GGC, allowing online casinos to freely sell their goods and services to their player base if no problems are discovered.
As you can see, the GGC has a lot of rules in place for their licensees to follow and cooperate with. Almost every aspect of an online casino is regulated in some way. The UK Gambling Commission and the Malta Gaming Authority enforce very similar rules, although there will be differences based on each jurisdiction’s own ideas on how to regulate casinos operating beneath them.