Gaming tax levels in Gibraltar are currently levied as from 1st of April 2005 at 1% of the turnover up to £42,500,000 of annual turnover with the tax capped at £425k per annum. The minimum annual tax payable is £85k. Betting exchanges are taxed on the same basis as fixed odds operations. For online casinos gaming tax is currently levelled at 1% of the gaming yield or gross profit.
These low taxation levels have attracted the leading online sports betting, casino and gaming operators from across Europe to Gibraltar.
It’s not a free for all, however. The licensing authority will only consider licensing blue chip companies with a proven track record in gambling, licensed in a reputable jurisdiction, of good financial standing and with a realistic business plan. Licenses are generally difficult to obtain.
This means only the very best in the industry are able to set up shop in Gibraltar. It is for this reason it has been referred to as online gaming’s answer to Silicon Valley.
Our business model allows us to offer our players the chance to win the world’s biggest jackpots. We make all payments of up to €10m from the revenues we acquire through sales. Payments in excess of this amount are covered by our Insurance-Linked Securities model.
In April 2015, Lottoland became the first company to capitalise on the Gibraltar government’s recently introduced financial services framework for Insurance-Linked Securities (ILS) by arranging a €100 million transaction through inea GmbH, a German company focused on structuring and placing of non-correlated investments for institutional clients. This transaction was subscribed for by some of the very biggest global insurance companies. ILS is normally a scheme adopted by insurance companies to protect against events such as earthquakes.
The original ILS known as the ‘Fortuna’ transaction was reinstated in June 2016.
The new Fortuna 2 transaction, again fully collateralized through Trust Accounts and Letters of Credit, provides more than €100m of annual coverage – including reinstatements – protecting Lottoland against large payouts and giving their players access to the largest lottery jackpots in the world.
In addition to this we are backed by some of the world’s leading insurance companies and we are also regularly audited by KPMG. KPMG also provides loss verification services in relation to certain big wins.
We have paid out €300m in winnings to our players since the inception of our business. Indeed, we have paid out five multimillion winners since December 2015 alone. Our record single payout so far is €22.3m in April 2016.
Sixty percent of our player base is now on mobile, making it our most important channel. We’re absolutely committed to becoming leaders in this area and the progress we have made has already been recognised – in June we were awarded ‘Best Lotto App’ at the Gaming App Awards in London.
We’ve got a highly dedicated and talented product development team who take an omni-channel approach, ensuring we are able to stay ahead of the curve both on mobile and online.
We also offer our players a wide portfolio of instant win games and scratchcards.
We are constantly looking to expand our offering to make it as engaging and relevant as possible for our users.
That’s the great thing about lottery, it has universal appeal. Everyone at some point or another in their lives has thought about what it would be like to win a massive jackpot.
We don’t have any set demographic; our product is for everyone who has ever thought about winning a huge jackpot, and is interested in more choice and other alternatives.
Our players benefit from a generous welcome offer as well as ongoing retention offers once they start playing with us. We also offer a range of unique features not traditionally associated with lottery, such as DoubleJackpot that allows our players to win twice the jackpot available on the official draw. We also offer Numbershield, which lets our customers keep 100% of the jackpot should they win, even if there are other winners. In addition to this we offer a rewarding Refer a Friend scheme and a range of other unique player incentives.