Gibraltar to raise gambling taxes for online companies in 2011

"Nobody will leave," said Victor Chandler, Chairman of Victor Chandler International, one of the gaming companies located in Gibraltar, to El Pais newspaper. "Although we'll all complain about taxes going up." That may be a sentiment shared by many of the online gaming executives in Gibraltar.

European Union law maintains that taxes must be comparable, and Gibraltar has had a tax level much below other countries. The government has decided to come into compliance with European law. Around 20 online gaming companies will be affected by the tax rate change.

The gaming companies are thriving of late, and the tax should not cause any of the companies to move. Even if they wanted to leave, it is impossible to find anyplace where they will receive a lower rate, even at the ten percent that the government is increasing to. Gibraltar lawmakers understood they could raise the rate and not risk losing business partners.

Companies located in Gibraltar have recently started to consolidate with other gaming companies. Ladbrokes is in the process of creating a bid to acquire 888 Holdings. If that were to happen, Gibraltar could see more companies moving into the area in the coming years.