News > Archive > 2006 > October > European Court rules in favor of Gibraltar's Online Casino companies
European Court rules in favor of Gibraltar's Online Casino companies
12 Oct 2006
The Gibraltar-based online gambling companies had a very good reason to celebrate this week, following a decision of the European Court that allowed this British overseas territory to maintain its friendly taxation policy intact. A vast number of online casino companies have taken advantage of that reality in the last years and decided to establish their headquarters in the low tax jurisdiction of Gibraltar, instead of other areas in the region. By doing so, those online casino companies have managed to greatly increase their profis, as they are avoiding paying a tax rate of 30 percent to the UK corporation.
But not everyone was happy- as the online gambling companies- with the European Court decision. Since 2004 the European union has been trying to annul those tax benefits, claiming that it gives the online casino companies an unfair advantage. Their main goal was to change Gibraltar's tax regime by the year 2010, what could have meant that all those online casino companies would have to pay a 30 percent tax. It would also, of course, reduce the attractivity of the area.
But, as stated before, the recent ruling of the European Court has calmed down the minds of the online casino companies and the whole gambling community. As Martin Weigold, a finance director of one of the online gambling companies based on this territory, confessed, this rule assured that the online casino companies won't have to pay the full tax rate and the region of Gibraltar will continue to be attractive to those sides.
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