GBGA Takes on UK Gambling Bill Point of Consumption Tax

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GBGA Takes on UK Gambling Bill Point of Consumption Tax

Scales of Justice: The GBGA launches a second challenge that is legal this time against the point of consumption income tax.

The Gibraltar Betting and Gaming Association (GBGA) has launched a 2nd challenge to the new British Gambling Bill, AKA the Gambling (Licensing & Advertising) Act, having seen its initial challenge thrown out of London High Court earlier in the month.

While the company’s first challenge contested the Act itself, the new demand for a judicial review focuses solely on the new point of consumption taxation, which, as a tax issue rather than a certification problem, has been going right through separate legal procedures.

The point of usage tax will introduce a 15 % duty on all gambling operators that wish to engage using the British market, each of whom must be licensed and regulated in the united kingdom.

Again, the GBGA will argue that the legislation is unlawful and that the purpose of consumption income tax breaches Article 56 of the Treaty on the Functioning of the European Union, which deals with all the free movement of trade across borders between EU member states.

Rogue Operators

‘This tax is a restriction on the provisions of services,’ stated the GBGA. ‘There are no equivalent precedents of the UK Government seeking to tax entities abroad in respect of the supply of solutions into great britain without going right on through the route that is appropriate of harmonization through the EU. This really is incompatible with Article 56.’

The GBGA disputes the assertion by the united kingdom government that the new income tax regime is a means to protect clients, arguing that instead it will drive UK citizens towards ‘rogue operators.’

‘If responsible foreign operators are forced to raise prices (i.e., offer less favourable odds or a rake that is high, it is inescapable that many consumers will move to companies with no legislation and reduced overheads,’ it said. ‘Rogue operators will be beyond reach of UK law and consumers will face increased risks of fraud, non-payment and abuse.’

Smoking Gun

The association additionally contends that its place against the tax is stronger as a consequence of the High Court judgment this thirty days. For a member that is eu to restrict trade and be in breach of Article 56, it must have quite sound reasons for doing so. And while Judge Justice Green rejected the GBGA’s arguments against the licensing that is new, he claimed that the inflammation of government coffers are not a justified reason to breach Article 56. This, the GBGA hopes, is the smoking gun. Then the only reason for the tax is to increase revenue, rendering it illegal, the GBGA will argue if the assertion is flawed that the new regime is to protect the customer.

‘The truth is that this tax regime has no legitimate purpose,’ said the GBGA. ‘Moreover, the income tax is discriminatory. European law supports our position. The federal government says this tax ensures ‘respect for fiscal sovereignty’ and is needed for the ‘coherence of UK income tax authority’. We believe this implies their real aim is always to guarantee that UK operators in forex trading are favored, at the cost of law-abiding and accountable operators outside of the UK.’

South African Gambling Board Suspended for Corruption

South African Trade and Industry Minister Rob Davies, who suspend the nation’s entire gambling authority pending an investigation into numerous corruption charges. (Image: Trevor Samson/

The entire South African Gambling Board has been suspended for being an alleged hotbed of corruption, mismanagement and spending that is wasteful according to the nation’s trade and industry minister, Rob Davies.

Davies relieved the National Gambling Board of Southern Africa (NGB) of its authority month that is last although the reasons for the move were not made clear until last Friday, when the minister explained their choice in a letter to Parliament’s Trade and Industry Portfolio Committee.

Among the allegations against the members of the board, every one of whom are personally appointed by Davies, is the failure to ‘prevent irregular, fruitless and wasteful expenditure, and making overdraft on the entity’s bank account without the approval regarding the minister of finance.’

According to Alliance Member that is democratic of Dean Macpherson, board members had presumably ‘increased their very own remuneration by a staggering 46 per cent in the 2013/14 duration.’ The regulatory body spent R2.7 million, or almost $250,000, on travel over the course of the entire year, including more than $150,000 while attending a conference in Norway.

We didn’t know there had been even that much fun to be had in Norway.


Furthermore, the board, ‘acting either individually or jointly,’ had permitted ‘members whoever term of office had expired to continue participating in the board’s activities and representing the NGB,’ a breach of the National Gambling Act. The so-called indiscretions were brought to the minister’s attention by the Auditor General.

Nonetheless, Davies told the committee he had also received a tip-off from the whistleblower who disclosed ‘alleged corrupt activities about the nationwide Central Electronic Monitoring System’ and the ‘unlawful appointments of staff.’ The whistleblower had also revealed a culture of what the minister described, oddly, as ‘intimidation/bullying/disregard of constitution/witch-hunt’, aswell as alleged ‘theft of evidential material.’

Davies said the suspensions were ‘cautionary’ pending a ‘forensic investigation’ into the allegations. ‘[This] will mainly cover the assets for the National Gambling Board, and the minister has also appointed two administrators to oversee the day to time assess of the National Gambling Board,’ stated a spokesperson. ‘ We are able to say the length of time this can take.’ [sic]

The opposition Alliance that is democratic said would be asking Parliament when the investigation is probable to be completed and would demand that criminal charges are brought against anybody who has acted illegally.

Southern Africa’s Gambling Landscape

South Africa has a thriving casino that is land-based, with resorts like Sol Kerzer’s Sun City; a mammoth resort that was actually announced an unbiased state through the apartheid regime (a concession that allowed it to hold topless revue shows that had been banned elsewhere in Southern Africa). Gross gambling income for 2013-14 was $1.9 billion for the entire country, with more than 75 % of that originating from the land-based casino industry, and the federal government benefited from $190 million in tax revenue.

While sports wagering may be the only form of on line gambling that happens to be legal in South Africa, the Trade and Industry Portfolio Committee happens to be mulling over a draft gambling bill that would totally open up the market, allowing provincial licensing authorities to issue as numerous remote gambling licenses because they desire. However, with the obvious intransigence of the ruling ANC on the problem, and the gambling that is entire suspended, don’t expect this to happen anytime soon.

New Jersey Mafia Bust Evidence that Sports Betting Needs Oversight, Says State AG

Acting brand New Jersey Attorney General John J. Hoffman states the Genovese Mafia ring was bringing in $1.7 million per year from illegal activities ops that are betting. (Image: Don Smith/

A brand new Jersey Mafia breasts supports the idea that recreations wagering within the Garden State has to be legalized so that criminal elements out, according to the state’s Acting Attorney General, John J. Hoffman.

Speaking at a press conference in Newark this week, Hoffman said that the break that is recent of a sports wagering and loan-sharking procedure run by the notorious Genovese crime family highlights the need for sports betting to be dragged ‘out of the shadows.’

‘We have talked before at length about among the primary efforts in our activities betting journey out of the black market shadows,’ said Hoffman that we have been on is to try to bring it. ‘The Mafia, the crime that is organized controlled shadows. And this is exactly where it’s happening.’

His words echo those of former New Jersey Governor Brendan Byrne, the man whom signed casino gambling into legislation in the continuing state, who saw the implementation of rigorous gambling regulation as an element of the combat this new Jersey Mob, famously warning the Mafia to keep its ‘filthy fingers off Atlantic City.’

Multimillion Dollar Mafia Operation

Incumbent Governor Chris Christie the other day approved a legislation that will permit sports gambling in nj-new jersey at casinos and racetracks. Currently only four US states, Nevada, Delaware, Montana and Oregon, have the ability to provide activities betting legally under federal law. The Protection and Amateur Sports Protection Act of 1992 (PASPA) makes it a criminal offense elsewhere in the US; nonetheless, Christie’s legislation seeks to repeal the prohibition, effectively decriminalizing sports betting within the state, which lawmakers see as an easy way a of revitalizing New Jersey’s lagging economy.

New York Harbor Waterfront Commissioner Michael Murphy told the press that is assembled the Mafia operation was indeed bringing in as much as $1.7 million a year from sports betting alone. The ring, it is believed, was orchestrated by Vincent Coppola, the 37-year-old son of jailed Genovese capo Michael ‘Mikey Cigars’ Coppola. Murphy said that Coppola used a wire room in Costa Rica to process gambling deals, while his henchmen in New Jersey vetted clients that are new enforced collections of gambling debts. While 11 people were arrested for participation in the ring, Coppola stays in particular.

Prohibition No Longer Working

‘ As soon as the mafia, when organized crime, takes over and makes cash on illegal gambling, where does it go?’ asked Murphy. ‘It doesn’t get to property income tax relief, it doesn’t visit senior citizens, and Medicare or prescription programs. It goes to money laundering, it visits the importation of heroin, and you can find children today that is dying New Jersey because of this,’ Murphy stated.

Murphy also drew a parallel between the outlawing of recreations betting and that of alcohol during the Prohibition era, which inadvertently allowed the Mafia to flourish through bootlegging operations. ‘People drink and people gamble,’ he said. ‘Some of this families that are still engaged in planned crime today, a few generations ago enjoyed enormous profits during a time when drinking was unlawful.’

However, it seems that not everybody in New Jersey is persuaded by the arguments against the prohibition of sports wagering. A poll this week conducted by Rutgers-Eagleton showed that while legalization is broadly supported by some 44 percent of New Jerseyans, another 31 percent said they thought it could make no difference, while 17 percent were staunchly against it.

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