KPMG REPORT GIB.Qxd:Layout 1
Total Page:16
File Type:pdf, Size:1020Kb
Thursday 19th April 2012 Kindly sponsored by © 2012 KPMG Limited, a Gibraltar limited company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative 1 (“KPMG International”), a Swiss entity. All rights reserved. Introduction Over the past fifteen years, Gibraltar Brennan of HM Treasury and Andy This report seeks to summarise the has established itself as one of the Grimsley of HM Revenue and Customs day’s events with a view to sustaining world’s leading on-shore European on the UK’s regulation and taxation of the impetus and enthusiasm jurisdictions for eGaming eGaming, with particular reference to generated by the Summit. KPMG businesses wishing to establish the UK Government’s recently would like to take this opportunity to themselves within a well-regulated announced Point of Consumption Tax. once again thank the speakers and and tax-competitive commercial KPMG’s Archie Watt then opened the delegates who attended, all of whom environment. Its reputation as a afternoon session with a presentation contributed to its great success. This secure and robust, first-class which commended the remarkable was the second such event held in gaming jurisdiction has resulted in resilience of the eGaming sector over Gibraltar, with a view to more in the its becoming host to many of the the past decade, upon which note he future as the industry continues to world’s major gaming operators, all introduced the focus of the remaining flourish. of whom have benefitted session as being concerned with the KPMG employs a number of eGaming significantly from the positive future of the eGaming industry. The industry specialists both in Gibraltar approach to eGaming taken by the Summit closed with a four-delegate and globally and is committed to Gibraltar Licensing Authority. panel session, moderated by KPMG’s cutting through the complexity of this Russell Kelly, entitled ‘eGaming and On the 19th April, 2012 at the Caleta constantly evolving industry. Beyond’. Hotel, the KPMG eGaming Summit sought to compound and elaborate upon Gibraltar’s demonstrably excellent reputation for cross-industry A word from discourse by providing a forum within which businesses and representatives the Sponsor could meet and discuss the current and future global presence of the At Continent 8 Technologies, our eGaming sector. investment in Gibraltar’s eGaming Gibraltar’s Minister for Education, sector is testament to our belief that Financial Services, Gaming, Gibraltar represents a globally Telecommunications and Justice, the competitive jurisdiction built on Hon. Gilbert Licudi, kindly opened the solid foundations of technological Summit with a welcome address innovation, co-operative regulatory which outlined Gibraltar’s ongoing practices and a robust political and commitment to providing a safe and economic environment. transparent operational jurisdiction The Continent 8 Technologies Gibraltar with internationally competitive data centre is the latest addition to the Summit was the perfect opportunity to regulatory and supervisory legislation. company's expanding global data demonstrate our commitment to The morning session then focused centre footprint. We believe it staying at the cutting-edge of this predominantly on the issue of represents the perfect accompaniment exciting industry. regulation within the eGaming sector to both Gibraltar’s flourishing eGaming both from a local and European Continent 8 Technologies was proud to industry and continued investment in sponsor the day’s events and we look perspective. Highlights included a an increasingly diverse technological much anticipated address by Maria forward to next year’s KPMG eGaming infrastructure set to become a global Summit in Gibraltar. platform for e-commerce. Richard Ebbutt We focus on the delivery of market- defining Internet technologies, Continent 8 Technologies products and services for global online gaming and this year’s KPMG eGaming © 2012 KPMG Limited, a Gibraltar limited company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 2 Conference Opening The Hon. Gilbert Licudi QC The Hon. Gilbert Licudi QC Minister The Hon. Gilbert Licudi QC is disappointed the Gibraltar Government It had also been suggested that one of Gibraltar’s Minister for Education, and is a matter which has been the reasons for the licensing and Financial Services, Gaming, prioritised within the Licensing regulatory regime is the need to protect Telecommunications and Justice. Authority. Mr. Licudi confirmed that he the UK’s customers. Mr. Licudi agreed As well as his extensive role with had already engaged and will continue that online gaming is a leisure activity the Gibraltar Government, Mr. Licudi to engage with the UK Government on which involves some risks: “some is a Barrister specialising in this issue and that it was, in fact, the customers may exercise poor judgment commercial and trust litigation and subject of Mr. Licudi and Chief Minister and control and some customers may has been admitted to the Bar in both Fabian Picardo’s first meeting with commit or seek to commit crimes London and Gibraltar since 1992. officials in London following the 2011 against the operators. Yet Gibraltar has elections. Mr. Licudi also confirmed that shown that such risks are best managed Mr. Licudi opened the Summit by both he and The Hon. Mr. Picardo met when the providers are small in number, reassuring the floor that Gibraltar with John Penrose, the UK Minister for high in quality and tight in their remains committed to licensing only the Department of Culture, Media and regulation,” he stressed. As the industry the world’s best operators; “thereby Sports as well as the UK Minister of the has developed, remote gambling sustaining a critical mass of like-minded Treasury Chloe Smith. Maria Brennan of customers, both good and bad, have companies, which are like-minded with HM Treasury, who was due to speak at become increasingly astute and in their the Government, like-minded with each the Summit later that morning, was search for the best odds and deals are other and dedicated to providing safe also present at the meeting with Chloe sometimes drawn to sites which serve and secure remote gambling services Smith. as a platform for illegal markets. within and beyond Europe.” As such, However, Mr. Licudi maintained that “the Mr. Licudi reminded delegates that the Mr. Licudi confirmed that the Gibraltar black market has been squeezed out of Gibraltar Licensing Authority “expects Government will continue to lobby and to the UK by low cost but properly and requires its licensees to be as present its arguments to the UK regulated regimes like Gibraltar’s.” precious about their reputation as we Government and claimed that the are about ours.” decision was, in essence, a political Mr Licudi warned that the emerging UK proposal. The Gibraltar Government model provides a climate within which Key Challenges believes there is scope for the UK the black market will re-emerge as The key challenge concerning many in Government to re-consider its position surely as it has elsewhere, perversely the industry is the UK’s recent proposal and will make sure, as Mr. Licudi stated, creating a regime which, despite being to introduce a Point of Consumption Tax that the UK Government understands billed as necessary to protect UK in the UK in December 2014, along with that “what they call a fairer system of customers, may have precisely the a licensing and regulatory regime for taxation would operate with opposite effect. The new regime could foreign operators. The proposal has disproportionate unfairness to Gibraltar.” in fact drive those customers to © 2012 KPMG Limited, a Gibraltar limited company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative 3 (“KPMG International”), a Swiss entity. All rights reserved. “some customers may exercise poor judgment and control and some customers may commit or seek to commit crimes against the operators.” unlicensed and unregulated operators based in less reputable jurisdictions who will have no intention of paying the proposed Point of Consumption Tax in the UK. “But”, as Mr Licudi concluded, “this is not the first threat that we in Gibraltar have faced”. In each case, Gibraltar has been able to meet challenges with resilience and determination and, after meeting those challenges, the eGaming industry has moved on and grown. It is important that the Gibraltar Government remains perceptive and responsive to these changes and is able to demonstrate sound judgment and the ability to act and adapt where necessary: “I have no doubt that the Government of which I form part will do precisely that and we will do so by talking and listening to, and working in partnership with our operators.” 4 Gibraltar Licensing and Regulatory Update Phill Brear Phill Brear Head of Gambling Regulation Gibraltar Regulatory Authority Phill Brear was appointed as Head of commissioning the recently completed experience the most disruption as a Gambling Regulation for Gibraltar in Europe India Gateway submarine result of the proposed changes. October 2007 following two years as telecoms cable; describing it as “yet Mr Brear reminded the Summit that Director of Operations with the another demonstration of Gib Plc’s the DCMS White Paper asserted that British Gambling Commission. In commitment to eCommerce and the there were five key reasons for the July 2011, he was appointed as Gambling industry.” He then outlined existing regime to change, all of which Gibraltar’s Gambling Commissioner his presentation as being a reprise of were and remain, in his opinion, in addition to his existing four issues of particular relevance to unfounded. The first and most responsibilities. He played a key part the eGaming sector: emerging UK damaging alleged that the technical in the roll-out of the UK Gambling policy, the European Commission standards in jurisdictions like Gibraltar Act and Gibraltar’s new Gambling Green Paper, ‘Black Friday’ and issues are not as reliable as those found in Act and has steered through a series surrounding integrity.