UK Crackdown on Online Gambling

November 1, 2013

Before we start discussing what the UK is going to do to dissuade offshore online casino sites from offering their services, without a local gambling license, within the country, let’s just look at the USA a moment, as it gives a good contrast. Right now, the spate states, Nevada, Delaware and New Jersey have granted a local online gambling license to several online casino operators and associated companies, and legalized online gambling for its citizens, resulting in gambling tax revenue being received. There are indications that many more states may follow suit. Now, let’s move on to the UK.

The potential problems ahead for online casino operators in the UK, revolves around some new aggressive legislation, in the form of tax reforms. These new tax rules, that affect all tax, not just gambling tax, will see online gambling firms in the UK having to pay an additional 15% gambling tax.

There is also a very firm commitment in the UK to narrow down the number of locations in which an online casino site can be registered, and allowed to offer online gambling services to UK citizens. Basically, we are talking only Europe, and a few other island states.

This means two things. Firstly, offshore online gambling companies, and there are many, includint some major ones, will no longer be able to offer online casino play to UK citizens. They will be if they move their business to one of the allowed locations. The second problem, is caused by the first. If a major site moves its business to a legible nation, then it will lose the one of the major benefits of being registered offshore. Namely a nice healthy 1% tax rate. This would be replaced by the 15% tax rate in the UK.

It is unclear where the UK is going with this. Whether it simply wants to stop offshore registered online casino operators from doing business in the country, or whether it is trying to force them into paying an increased tax level, and gain revenue from gambling tax in the UK. Only time will tell.

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