The proposal is expected to raise £200m a year, reclaiming money from bookmakers that have relocated their on-line businesses to countries with more favourable tax rates. William Hill, Ladbrokes and Betfair are all currently based in Gibraltar.
William Hill told the Global Legal Post that it is merely considering options at the moment, and could not provide specific information.

Encouraging noises

However, the bookmakers is understood to be instructing its lawyers regarding a challenge, with chief executive Ralph Topping revealing to The Daily Telegraph newspaper that he had heard ‘encouraging noises’ regarding the probability of success.
Specialist lawyers have suggested that the proposed move would be illegal under European law, since it attempts to prevent the free movement of goods and services for tax purposes. James Chess, betting and gaming partner at English law firm Wiggin said ‘you cannot restrict the free movement of goods and services in order to raise your own national tax’.
The proposed tax has also faced criticism and the possibility of legal action from Gibraltar, with officials worried that the 15 per cent duty will drive bookmakers back to the UK. The Gibraltar Chronicle reported that Gilbert Liculdi, Minister for Gaming and Telecommunications, described the proposal as having ‘disproportionate unfairness to Gibraltar’. He also warned that it ‘may have the exact opposite effect from what is intended as it will force punters into the black market.’