PLANS to impose a gaming tax on offshore gambling companies operating in the UK could affect thousands of jobs in Gibraltar.
Under proposals due to be considered by the UK parliament, firms would be required to pay a transaction tax on online gaming.
Gibraltar has long been an attractive haven for gaming companies because taxation on profits can be up to 15 per cent lower than in the UK.
But under the terms of the Remote Gaming Bill the tax contribution of domestic operators would be slashed, with offshore companies forced to make up the shortfall.
Chief Minister Fabian Picardo recently met with the UK Minister for Tourism & Heritage, John Penrose, to challenge the introduction of the tax.
“There are issues on the horizon for Gibraltar,” Picardo said.
“Those issues affect businesses in Gibraltar, and it is not always the usual common enemy that is responsible.”
Under current legislation, operators based in Britain are required to be licensed by the Gambling Commission, while operators licensed in European Economic Area (EEA) member states, including Gibraltar, are permitted to advertise in the UK under the terms of their license.