Brexit

Casino Operators in a Possible Breach of Gambling Codes of Conduct

Posted by martha on in Bingo, Blog, News / 1 Comment

The Institute of Economic Affairs (IEA) has received a huge donation amounting to around £8,000 from the casino industry of the United Kingdom. This donation was supposedly made moments before the institute released a report of its findings. This report recommended that the current ban on the establishment of new casinos be lifted.

Casino OperatorsMoments before this donation was made, some officials of the National Casino Industry Forum (NCIF) supposedly met those of the Institute of Economic Affairs (IEA). The latter confided with the former sometime before drafting the final report. The report did not, however, mention this interaction in its final report though.

The report decried any attempt to further regulate the establishment of new casinos. It argued that there existed no reason to restrain mid-sized towns from accommodating newer casinos. The report is however open to any new opinions or calls for alterations.

This revelation of a donation was brought to the fore after the Guardian disclosed that the Institute of Economic Affairs had offered assistance to US nationals who had farming interests unbridled access to civil servants and top government officials.

These US nationals had planned to invest a whopping £35,000. Their meeting with Steve Baker, who at that time was the Brexit minister, was supposedly planned for by the said Institute of Economic Affairs.

The think-tank as a matter of fact also confirmed that several persons outside the Institute of Economic Affairs had been granted a peek into the report before it was finally drafted. It has however denied any possibilities of the final outcomes or conclusions being influenced by these interactions and access.

These developments have raised queries as regards the influence that the local casino industry may wield on the various institutions that are charged with the responsibility of overseeing it. The Local Labor party termed the developments as shamed.

In particular, it took issues with the Institute of Economic Affairs for its involvement in “widespread lobbying and scandalous political campaign activities.” It further stated policy was adhered to as part and parcel of the attempt to enable the think tank to pursue its precise goals.

Many members of the public have questioned themselves, ‘Could the independence of the think tank have been compromised?’

In consequence of these developments, some formal investigations have been launched to these effects. The Charity Commission has taken the lead in spearheading these investigations. Alyson White, yet another Government’s lobbyist, has also decided to initiate her own independent investigations.

Further to these, Ms. White has also revealed that she has launched an independent inquiry on whether the think tank, which was supposedly created as an educational non-profit organization, should, in fact, be registered as a lobbying body.

On its part, the Institute of Economic Affairs has downplayed any rumors of a possible breach of the existing charity laws. Its director, Mark Littlewood, while commenting on the issue argued that the contributors are unable to influence the final outcomes and conclusions of such a research in whatever shape and form.

The National Casino Industry Forum (NCIF) on the other hand, also denied any compliance with the research outcomes. It further went on to state that it neither commissioned nor paid for the report at all. It has maintained that those donations were made long after the report had already been instigated.

 

 

Impending Brexit and Its Likely Impact on Gibraltar Gambling Industry

Posted by martha on in Bingo, Blog, News / 1 Comment

The UK’s imminent departure from the European Union, popularly called Brexit, is expected to severely impact the gambling industry in Gibraltar. This is because most of the safety measures, rules, and regulations that govern trade in the economic zone shall not apply anymore.

The recent dual resignations of two British top ministers i.e. David Davis and Boris Johnson have further exacerbated the situation. Their resignations have shaken the government to the core and created a wave of uncertainty as regards the way forward. Indeed many waits with bated breath to see how the events shall unfold.

As things stand, the gambling firms that operate in Gibraltar are governed by the European Union rules of trade. They are also entitled to the same privileges as their counterparts in the rest of the trading block. Some of the top benefits these firms accrue are unhindered access to the huge market, freedom to move their staff, operations, and bases throughout the entire trading bloc, and protection from adverse competition from international sources.

If and when the Brexit deal is eventually finalized, all firms that set base in Gibraltar are expected to be adversely affected. They shall lose all these privileges. This shall see their stocks and revenue take a nosedive.

In response to these issues, Gibraltar has instituted a host of countermeasures. It has significantly reduced the corporate tax on gambling revenue by a whopping 0.85% (from 1% to a paltry 0.15%). It has also advised gambling businesses that have a base within its territory to identify contingency measures which may aid them to cope with the imminent change of the trade regime.

At the same time, the nation has also raised the license fees in a bit to cater for revenue shortfalls. The license fees are one-time expenses and are such not expected to impact adversely the desirability of Gibraltar as a favorite gambling destination or base.

The license fees of the business-to-consumer gambling companies shall cost $132,000 (£100,000) while those of the business-to-business gambling companies shall cost $112,000 (£85,000) under the new licensing regime.

Some top gambling firms have also decided to take matters into their own hands. They have decided to draft their own contingency plans to counter these issues. The most notable examples of these firms are the Bet365 and 888 Holdings.

These two firms have resolved to move some of their operations to Ireland and Malta. This is in a bid to circumvent the obstacles that are expected to be placed on the path of the companies that set up base in Gibraltar. More gambling firms are expected to follow suit or at least modify their rules of engagements.

Other than the aforementioned issues, the tax schedule is also expected to be severely impacted. This is because the EU requires all firms to be based within its borders for any decision touching on the tax to be made. This will complicate matters further as no firm as of yet has issued an intention to fully relocate its operations.

The stakeholders in the gambling industry are in a flurry of activities aimed at rescuing the gambling business. Most propose that the Brexit deal also stipulate the manner in which gambling shall be treated as a trade. This stems from the fact that service industries of which gambling is a part, have been largely excluded from the ongoing Brexit talks.

A number of stakeholders have contemplated looking to the World Trade Organization to offer the needed way forward. Their argument is hinged on the premise that both the UK and the EU are members of the global trade organization. They are therefore bound by the same rules notwithstanding the fact that they may have parted ways.

Gibraltar’s gambling industry is one of the most vibrant and lucrative. It will be interesting to see how events unfold especially with regards to the latest developments.