The on-line gaming industry was established in Gibraltar more than a decade ago and has continued to grow steadily to become one of the pillars of its economy. Gibraltar has also become one of the most important jurisdictions in the world for on-line gaming driven largely by casino gaming, especially poker. This has been achieved through a successful combination of various factors including a robust regulatory framework, good communications infrastructure and a highly-skilled/specialised labour force.
With the introduction of the Gambling Act 2005, all gambling operations in Gibraltar require licensing. The licensed entities are regulated by the Gibraltar Regulatory Authority as it is important for remote gaming operators to conduct their operations in accordance with their licenses and maintain the good reputation of Gibraltar. The licensee is required to produce audited accounts to the Regulatory Authority each year during the licence period and maintain its financial records in accordance with the applicable law.
Further to the UK’s Gambling (Licensing and Advertising) Act 2014, gambling in the UK is now regulated at the point of consumption rather than the point of supply. This means that remote gambling operators now require a UK licence if their gambling facilities are used in UK, even if no equipment is located there. From 1 December 2014, a remote gaming duty of 15% applies on profits generated from UK customers, no matter in which jurisdiction the operator is situated. This has had an impact on operators which had moved to jurisdictions such as Gibraltar with a favourably low tax climate. However, our jurisdiction is home to the bigger players to which the additional tax burden is not relatively detrimental to the bottom line figure. Since then, there has been a series of mergers and acquisitions with brands becoming even bigger to face further challenges that the industry may impose.
RSM has a dedicated and experienced team that specialises in providing services to remote gaming operators. Staff are provided with on-going training to keep abreast of changes and developments happening in this industry both locally and overseas. We also participate on a regular basis in the local and international industry fora.
RSM ensures that our clients are kept updated with any new guidelines and directives issued. Our specific services include:
- Due diligence services;
- Mergers & acquisitions;
- Compliance, internal control process improvement, IT audit, and fraud investigation and prevention;
- License application;
- Gaming tax advice; and
- External and internal audits.