London’s Royal Courts of Justice has ruled against the Gibraltar Betting and Gaming Association (GBGA) legal challenge to the United Kingdom's Gambling (Licensing and Advertising) Act.
Last week Lord Justice Green handed down a judgement supporting the United Kingdom Gambling Commission's introduction of the gaming law's new licensing system, a 15 per cent point of consumption tax for gaming operators and a new regulatory framework.
No appeal has been filed by the GBGA and according to a spokesperson for the Department for Culture Media and Sport, the Gambling (Licensing and Advertising) Act should be enforced on 1 November throughout the country.
The GBGA is now calling for a centralised legal framework for online gambling: "Given this judgement there is now even greater need for an EU legal framework for online gambling if we are to effectively protect all European consumers, enjoy a common market and avoid each member state deciding alone how to deal with an activity that naturally crosses borders."
The most major change in the UK's new gaming bill is the 15 per cent point of consumption tax, which will make it impossible for certain gaming sites to make a profit, especially if they are taxed in another jurisdiction or if there isn't enough liquidity to generate enough gross profit to cover the company's operating costs.
With this will come less competition for the gaming companies that remain, which could result in an increased market share. However, it may not come along with increased profits due to the UK government taking its piece of the pie.
UK gaming operators will also have increased marketing and social responsibility controls, and while that will add extra costs it would be seen to be providing some assistance to the country's problem gamblers.
While most major online poker sites will continue to operate in the UK, the country's players will have less gaming sites to choose from.
The GBGA was understandably disappointed by the decision by the Royal Courts of Justice. According to eGaming Review, a GBGA spokesperson said, "We maintain this law is not in the best interests of consumers, the industry and the regulator itself and that there are more effective ways of dealing with the challenges of regulation and competition in this sector."
