AT LEAST 1,300 jobs could go in Gibraltar now that the UK has changed betting laws and levied new taxes.
The Rock's head minister Fabián Picardo is said to be 'furious' with David Cameron's government for imposing the Gambling Act 2014 on its overseas territory and potentially costing it up to 300 million pounds (about 375 million euros) a year.
Picardo says the law reform goes against Article 56 of the European Union Treaty covering the right to free movement of goods and services between member States, and calls the UK's actions 'illegal', 'illegitimate', 'out of proportion', 'discriminatory' and 'unreasonable'.
As well as tourism and financial services, Gibraltar's main industry is betting and numerous online gambling houses are run from the Rock.
But now, heavy regulations mean gamblers will be taxed more on their winnings, betting houses operating from Gibraltar will get fewer tax breaks, and tax benefits of 15% will be applied to firms where operations are centralised all in the same place.
Major betting firms such as Ladbrokes, William Hill and Betfair which operate in Gibraltar have their head offices in the UK, meaning fewer tax exemptions for branches on the Rock.
Picardo says the move will just make online betting houses in Gibraltar 'go underground' and keep their operations off the radar as much as possible to avoid being taxed so much, meaning they will escape regulation.
Britain has passed the Gambling Act 2014 ostensibly to protect the consumer, but in practice it is aimed at clawing back money for the tax authorities since Gibraltar's lucrative gaming industry does not provide them with a great deal at present.
Whilst the British Treasury is set to receive a further 300 million pounds a year as a result of the legislation, says Picardo, this will mean Gibraltar loses around 290 million pounds per annum.
He estimates that the 'social cost' of this tax-grab will translate to over 1,300 jobs.
Unemployment in Gibraltar currently sits at around 3%, compared to nearly 50% in the Rock's nearest region in Spain, Andalucía.
