Gibraltar Law - question (betting firms)

[MrHat]

General question for legal minds

 

 

In the betting industry, many of the leading companies are based in Gibraltar so that they can avoid paying the horse racing levy and save costs.

 

 

If a dispute arose between such a betting firm and a customer (based in England) and the betting firm issued a claim, what would be the key differences to defending such a claim compared with being sued by a UK company. i.e. would the customer/defendant have to go to Gibraltar, CPR differences etc

 

 

Example - Betfair

 

 

http://www.betfair.com/aboutUs/Terms.and.Conditions/

 

 

Governing Law and Jurisdiction

If you reside in the UK:

 

1. these Terms and Conditions will be governed by the laws of Gibraltar;
   
2. and the courts of Gibraltar have non-exclusive jurisdiction in relation to all disputes under these Terms and Conditions.
   

[ericsbrother]

Awkward as disputes in gambling are often unenforceable in law but Gibraltar does have a gaming commission that looks into disputes so you can go to them. A common problem is getting your money out of them as cash rather than credits for future stakes.

[steampowered]

Non-exclusive jurisdiction in Gibraltar means that the courts of Gibraltar have jurisdiction. However that does not stop other courts from taking jurisdiction. Under English law, the presence of a Defendant in England is enough for the English courts to take jurisdiction. Betfair would therefore have a choice whether to sue in Gibralatar (presumably easier for them but they would then have to go through a registration process in England to enforce it) or in England (presumably more difficult for them but avoids the need for the registration process).

 

If the case is heard in England, then England 'procedural' law (i.e. the CPR) would apply. However Gibraltar 'substantive law' (i.e. legislation) would apply as this is the specified governing law of the contract.

[MrHat]

Thanks for the informative reply