British Tax Regulations for Online Gambling Under Consideration


02/09/2012
By Maria McCoyGoogle

A UK special parliamentary committee has been set up to study aspects of the online gambling industry and to examine proposals for secondary taxes on offshore internet casinos.  The committee will also take into consideration secondary licensing for online casinos. 

Two English politicians spoke before the committee: Richard Caborn, the former Sport and Tourism Minister, and Tessa Jowell, the former Culture Secretary.  They brought up that a proposal for the construction of five massive “super casinos” had already been shut down in 2005.  Furthermore, proposals for the instillation of betting machines have been indefinitely postponed as long as the Labour Party continues to protest on the grounds of problem gambling issues.  Other casino industry personalities are expected to appear before the committee soon.

William Hill, one of England’s biggest bookmakers and casino games operators, commissioned Deloitte, the world’s second largest professional service network, to conduct an independent survey.  Deloitte’s analysts reached the conclusion that higher taxes on gambling operators would inhibit the ability of England’s legitimate operators to compete with offshore unlicensed casinos.  Furthermore, only the top online casinos will survive the discouraging circumstances.  The analysts added that the burden on the big casinos would have a domino effect on industries that interface with the casino industry, including sponsored sports clubs.  William Hill submitted the survey to the Treasury for review.  CEO Ralph Topping told reporters that when it comes to money, people will always find a way to save.  If using unlicensed, unregulated, and unprotected casinos will be cheaper and easier, that’s where people will go.  He concluded expressing his hope that the British Government will see the benefit in protecting the mutual interests of the consumers, the industry, and the regulatory bodies.


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