Britain’s new licensing regime to go live on 1 November after judge rules in favour of UK government
Great Britain’s online gaming industry will be regulated on a Point of Consumption basis from the start of next month after the Gibraltar Betting and Gaming Association (GBGA) this morning failed in its bid to have the Act quashed on legal grounds.
Following a two-day judicial review at London’s Royal Courts of Justice last month, Lord Justice Green today handed down a judgment which backed the UK government and British regulator’s plan to introduce its new regulatory framework.
“In relation to the issues arising I have concluded that the claimant has not established that the new regime is unlawful under EU or domestic law,” Lord Justice Green said in his judgment.
“Further, I reject the submission that the new regime will create perverse incentives and lead to the creation of an illicit market of unscrupulous service providers.
“I also reject the submission that the passporting proposal would meet the legitimate objectives of Parliament or prove effective or achievable without gignificant bureaucracy and extra cost,” he said.
A spokesperson for the Department for Culture Media and Sport welcomed the judgment.
We now look forward to the commencement of the Gambling Act on 1 November, which will strengthen protection for consumers in Britain by ensuring that all remote gambling operators will be subject to robust and consistent regulation,” the spokesperson said.
The GBGA said it was “disappointed” by the decision after having argued the Act should be considered “unlawful” and a “restriction on the freedom to provide services” as guaranteed by Article 56 of the Treaty on the Functioning of the European Union.
“We maintain this law is not in the best interests of consumers, the industry and the regulator itself and that there are more effective ways of dealing with the challenges of regulation and competition in this sector,” a spokesperson for the GBGA said.
“We remain concerned the UK regulator will find it difficult to hold companies to account in jurisdictions outside of the EU where it has no legal powers and common legal framework or culture.
“Given this judgment there is now even greater need for an EU legal framework for online gambling if we are to effectively protect all European consumers, enjoy a common market and avoid each Member State deciding alone how to deal with an activity that naturally crosses borders,” the spokesperson added.
The share price of publically-listed operators have fallen in the wake of the decision with William Hill and Ladbrokes both seeing declines of more than 3% each.
The new regime had been due to come into effect on 1 October, however, implementation was delayed by one month in order to give Lord Justice Green sufficient time to reach a final decision.
Related article: Breaking news: UK Gambling Act delayed
