Gibraltar / Spain discord threatens online gaming companies in Gibraltar
There has been an escalation of tensions between Spain and the British Overseas Territory of Gibraltar over the weekend, apparently all started by Gibraltar's installation of an artificial coral reef on the seabed of their surrounding coastline which makes fishing for Spanish trawlers very difficult. As a result, Spain have imposed stricter border controls in retaliation, and more importantly for gamblers they've also threatened to force any internet services based in Gibraltar to be hosted on servers within Spanish territory.
This would hit international gaming operators who have moved offshore to Gibraltar to take advantage of their generous taxation system (1% of turnover) particularly badly since any profits made on gaming would be taxed at Spanish tax rates, which currently stand at an eye watering 20% of net profits (Spain, like many countries throughout the recession, introduced various tax measures in 2012/13 to squeeze what they see as 'recession proof' gaming profits).
Whether this will have a knock on effect for punters is hard to say, it's still early days anyway and this has all the earmarks of the same kind of sabre rattling we saw in Argentina when they saw an opportunity to do a smash and grab on the Falkland Islands natural resources (in a similar way Spain may be seen to be eyeing up the gaming industry in Gibraltar which is a staple income for the territory). I would suspect it will come to nothing and is just political posturing (there is plenty of other bad news to bury in both the UK and Spain ).
Post Thanks / Like
By Fella in forum Day to Day Life
Last Post: 14/02/2010, 22:31
Tags for this Thread