United Kingdom to Tax Offshore Online Casino Game Operators

By Debra SaundersGoogle

In his budget speech earlier this month, British Chancellor of the Exchequer, George Osborne determined that the United Kingdom would now define online gaming as taking place at the point of consumption and that offshore online casino games operators marketing to UK residents will face secondary licensing and taxation.

The determinations is a result of a year-long review by the British Department for Culture, Media and Sport of the existing online casino games laws in the country. During the year, there has been significant debate and discussion; however, the mention in the Chancellor’s speech has made it clear that the issue is moving forward.

In a recent speech in the House of Commons, Chancellor Osborne stated, "Ninety per cent of online gambling consumed by our citizens is now supplied from outside the UK. And the remaining UK operations are under pressure to leave. This is clearly not fair and not a sensible way to support jobs in Britain." Therefore the Chancellor will introduce double taxation relief for remote gambling so that taxes paid in offshore jurisdictions can be set off against British taxes.

It has been estimated by the Treasury department that these new initiatives will generate significant revenue for the country. An additional £ 55 million will be made available in 2014-15, £ 240 million in 2015-16 and £ 270 million in 2016-17. These numbers indicate that the total implementation of the new regime is likely to take upwards of two years.

It is expected that the government will tax top online casinos fifteen percent beginning in December 2014. The online casino games industry is now awaiting additional details from the government. 

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