In a shock turn of events, the recently implemented Point of Consumption Tax on online gambling in the UK has been referred to the European Court of Justice (ECJ).
The Point of Consumption Tax (PoC) regime came into force in late 2025, and has caused much controversy ever since. The tax itself is imposed on licensed gambling authorities who operate outside of the United Kingdom, but who operate casinos, bingos or other gambling sites in which UK players can register and play with real cash.
Before the tax came into force, these sites could offer players gambling through the use of a UK license and would not need to pay any tax to the United Kingdom as the business itself was based and operated outside of the UK jurisdiction. However now, no matter where the operator is based, they must pay tax on any profits generated through income from UK players. Basically, these operators pay their tax based on how much UK players consume. That means that if you spend £50 on a casino site and don't win anything, the operator will have to pay tax on that £50 to the UK government.
Since the law came into play, a lot of smaller and standalone casino brands have opted to move out of the UK due to the costs perceived from this, which could actually be making the market less competitive in the long run. This could then boil down to a worse deal for players in the longer term, if there's not much competition for your custom, so not as many great games or casino bonuses will be on offer.
However Olswang, a law company associated with the Gibraltar Betting and Gaming Association, is challenging this tax and the legality of it. Olswang recently won a case at the High Court of England and Wales, which determines that any laws and decisions on tax should not be dealt with in the UK, but rather with the European Court of Justice.
This is because UK tax on online gambling doesn't only concern UK law, but also raises questions of European law that can only be decided by the European Court of Justice.
Olswang has been challenging the legality of the tax since March 2025, whereby the law company was instructed to issue standard judicial review proceedings on the lawfulness of the new tax rules. Olswang made the case that actually the tax was discriminatory as it restricted the free movement of services, which is one of the key elements of the Treaty on the Functioning of the EU.
The Government of Gibraltar put its weight behind the case, and now since the High Court has agreed with Olswang, the case will now go to the ECJ. One possible outcome of this is that if the ECJ finds favour with Olswang and the Gibraltar Government, the UK Government could be forced to pay back millions in taxes to the operators.
Whatever the outcome, there are no major side effects for players either in or outside of the UK, so just continue gaming as normal to try and net that big win from your favourite casino site!
