The Government’s remote gambling taxation reform has moved a step closer after the High Court dismissed a legal challenge to the measure, which seeks to bring the licensing and taxation of UK-facing remote gambling operators under UK control, no matter where the operator is located.

The Gibraltar Betting & Gaming Association brought judicial review proceedings in order to challenge the Gambling (Licensing & Advertising) Act, under which operators would have to hold a UK licence and pay a 15 per cent ‘point of consumption’ tax on online profits earned from British customers. The GBGA argued the Act interfered with the right to free movement of services, guaranteed under EU law. However, the judge ruled that the “the new regime serves a series of legitimate objectives” and that the measures are “neither disproportionate, nor discriminatory, nor irrational”.

The legislation will come into force on 1 November 2014.