The UK’s Point of Consumption (POC) licensing framework was scheduled to go into effect October 1st but has now been delayed one month. The cause for the delay is due to opposition from the Gibraltar Betting and Gaming Association (GBGA) claiming the scheme to be ‘unlawful’ and “disproportionate”. The announcement to postpone the legistation until November 1st was made by the Gambling Commission which said that the Department for Culture, Media and Sport (DCMS) will take the necessary steps to reach a decision on the new POC licensing without pressure.
The GBGA has challenged the POC and has asked for a judicial review as they feel the new legislation breaches the right of free movement of services listed in Article 56 of the EU Treaty.
The main worry on behalf of the Gibraltar Betting and Gaming Association is that the new UK POC, which would imposes a 15 per cent point of consumption tax and require operators and suppliers to obtain a license from the Gambling Commission, would not be properly be enforced. The lack of proper enforcement may cause unregulated sites to thrive and attract players where gambling addiction and fraud may become prevalent and players would not be properly protected.
A spokesman from the GBGA commented on the postponement stating, “We welcome this extremely sensible step from the Government which at least holds the ring for a short period. It may be that they are beginning to understand the potential difficulties into which they have been put by the Gambling Commission in respect of this new licensing regime.”
A statement by the DCMS reads: “We remain fully confident of our case, and of the significant benefits to consumer protection that the Act will bring. However to allow the Judge to reach his judgement without undue time pressure we will be taking the necessary steps to postpone the Act coming into force for one month.”
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