On 10 October 2014, the English High Court handed down its
decision in relation to the challenge by the Gibraltar Betting and
Gaming Association ("GBGA") to the new point of
consumption basis for regulating gambling in Great Britain. The
GBGA's challenge was rejected by the High Court and the new
regulatory regime set out in the Gambling (Licensing and
Advertising) Act 2014 will therefore come into force on 1 November
2014.
The GBGA represents a number of Gibraltar-based gambling operators
that deliver remote gambling services to consumers in Great
Britain. The Department for Culture, Media and Sport said the
reforms, which were finalised earlier this year but were delayed as
a result of the GBGA's judicial review case, will now become
effective from 1 November 2014. The GBGA said it was disappointed
with the High Court's ruling.
During the judicial review, Peter Howitt, chief executive of the
GBGA, said the Gambling Commission "has neither the resources,
the legal powers, nor the skills to operate successfully across the
globe" and that it was "laughable" for it to suggest
it is better placed that Gibraltar's gambling regulator to
regulate gambling operators based in Gibraltar.
Under the new regime, businesses wishing to advertise or provide
remote gambling services to consumers in Great Britain will be
required to obtain a licence from the Gambling Commission to do so.
In connection with the new 'point of consumption regime',
the Gambling Commission has already implemented a raft of changes
to licensing conditions that e-gaming operators will have to adhere
to. There are also further changes to the gambling software
licensing regime which will take effect on 31 March 2015.
This new regulatory regime poses a significant challenge to
establish offshore e-gaming companies.
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