Gibraltar is considered to be one of the most desirable offshore centres for bookmakers, but there are only nine offshore bookmakers licences and the government is cautious about issuing new ones, perhaps not least because of the danger of overstressing the infrastructure in such a small place.
Recently, however, Gibraltar has had to face the possibility that the betting industry would desert the Rock almost as suddenly as it arrived, when the UK Chancellor, Gordon 'Stealth' Brown, announced changes to the UK's betting tax regime designed to tempt back the bookmaking companies which had jumped ship to escape the UK's 9% betting tax.
The Gibraltar government is currently holding discussions with those UK bookmakers established on the Rock following the British government's announcement. Bookmakers had left the UK precisely to avoid the tax that will be no longer there from the beginning of next year.
Trade and Industry Minister Keith Azopardi said that betting was not a mainstay of the economy, and discarded the idea that there was a crisis scenario.
Opposition leader Joe Bossano said the government had described the arrival of the bookmakers as one of the most important economic development in recent years. What they cannot do, he said, is seek the political credit when they came and then say it is not their fault if they go.
Some in the real estate industry immediately talked of a possible slump, but developers have indicated their optimism, with demand remaining high for accommodation in luxury projects already underway.
'This,' said one developer, "will allow for the market to continue offering affordable accommodation, and be able to give increased luxury accommodation in Gibraltar which after the sell out of the latest developments has seen an increase in the numbers waiting to buy luxury accommodation."
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