Gibraltar Legal Challenge Rejected in United Kingdom

October 14, 2014 by

Gibraltar Legal ChallengeThere have been a lot of interesting legal changes going on in the United Kingdom as far as online gambling go, and a recent Gibraltar legal challenge made things even more complicated. However, this challenge has been rejected by the high court, and now things will be moving forward with the changes that are to be implemented on a delayed time schedule that starts in November instead of on October 1. While the delay was originally put in place to give the court time to come to a decision on the Gibraltar challenge, that challenge has been struck down, and now we get to see the fallout.

What the Gibraltar Legal Challenge Was Over

The new Gambling Licensing and Advertising Act of 2014 in the United Kingdom was challenged by Gibraltar over accusations of disproportionate fees and discriminary practices. A lot of smaller companies have been pushed out of the UK by the terms and conditions of this act, and this is something that a lot of people have had a major problem with. However, with this challenge being over, we now have to look to the future and see what’s going to happen with the future of the industry in the UK.

Where the UK Industry is Going

The basic idea behind the new licensing scheme in the United Kingdom is to force companies that offer gambling in the UK to be taxed at certain rates based on how much they earn from UK companies. The wording of the law is putting a real strain on a lot of companies that work internationally, and Ladbrokes is a good example of a company that recently pulled out of Canada because the fees and resources required to prove certain facts about their small player pool there wasn’t worth the earnings they would get.

Overall, there have been a lot of complaints about the new Gambling Act, and a lot of critics believe it’s designed to push out low-tier competition and bring more players to the major players in the UK online gambling world. So far, it’s hard to prove those critics wrong.

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