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European court to hear gambling tax challenge

The European court heard issues raised by representatives of the gambling industry in Gibraltar regarding the point of consumption tax on gambling
The European court heard issues raised by representatives of the gambling industry in Gibraltar regarding the point of consumption tax on gamblingCredit: Oli Scarff

A hearing which will test the government's point of consumption tax regime for gambling and could have major ramifications for the betting industry will begin on Tuesday in Europe's highest court.

The new tax regime came into force in December 2014 and has been blamed for hitting online bookmakers' profitability.

Last year the High Court found in favour of the Gibraltar Betting and Gaming Association (GBGA) that the UK tax on online gambling raised issues of European law that should be decided by the Court of Justice of the European Union.

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