On 10 October 2014, the English High Court handed down its decision in relation to the challenge by the Gibraltar Betting and Gaming Association ("GBGA") to the new point of consumption basis for regulating gambling in Great Britain. The GBGA's challenge was rejected by the High Court and the new regulatory regime set out in the Gambling (Licensing and Advertising) Act 2014 will therefore come into force on 1 November 2014.

The GBGA represents a number of Gibraltar-based gambling operators that deliver remote gambling services to consumers in Great Britain. The Department for Culture, Media and Sport said the reforms, which were finalised earlier this year but were delayed as a result of the GBGA's judicial review case, will now become effective from 1 November 2014. The GBGA said it was disappointed with the High Court's ruling.

During the judicial review, Peter Howitt, chief executive of the GBGA, said the Gambling Commission "has neither the resources, the legal powers, nor the skills to operate successfully across the globe" and that it was "laughable" for it to suggest it is better placed that Gibraltar's gambling regulator to regulate gambling operators based in Gibraltar.

Under the new regime, businesses wishing to advertise or provide remote gambling services to consumers in Great Britain will be required to obtain a licence from the Gambling Commission to do so. In connection with the new 'point of consumption regime', the Gambling Commission has already implemented a raft of changes to licensing conditions that e-gaming operators will have to adhere to. There are also further changes to the gambling software licensing regime which will take effect on 31 March 2015.

This new regulatory regime poses a significant challenge to establish offshore e-gaming companies.

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