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A proposal for a tiered licensing system is being considered. The Gibraltar government held consultations to gather feedback before moving forward with the plan. Fortunately, small businesses and start-ups no longer need to make huge upfront investments. Established businesses that are in the process of growing and expanding may end up paying more than they used to.
attract new business
Under the current scheme, long-distance betting and gaming operators will pay an annual license fee of £100,000 (US$111,950). In contrast, B2B suppliers pay £85,000 (US$95,157).
The government said the system could be a burden for start-ups and small businesses in the “early stages” of their lifecycles. We would like to introduce a tiering system for games and game licenses.
To be clear, there are currently no plans to change the B2C gambling tax rate or impose a gambling tax on B2B operators. “We have attempted to address the situation that is charging us for ,” the government of Gibraltar said in its proposal.
An operator must apply for a separate license for each major gaming sector it operates in, with levels set individually by her GGY within each sector. For example, his GGY in sports betting is unrelated to his GGY in casinos.
Under the new proposal, any operator with GGY under her £20m will pay him £50,000 (US$55,975) at any branch. Above £20m ($22.39m) and if he makes less than £300m, the fee will be £100,000 for him.
Businesses whose GGY exceeds his £300m (US$335.85m) will pay a fee of £200,000 (US$223,900). Another change to the licensing structure is the introduction of betting agent licenses. This applies to exchanges and other similar businesses and includes a flat fee of £100,000. The lottery license remains the same at £100,000.