UK Online Gambling Shake-Up
The UK online gambling industry is in for a major shake-up if proposals recently announced by Sports Minister Gerry Sutcliffe are approved. The proposals call for companies that want to offer online gambling services to UK clients to obtain a UK-specific licence from the Gambling Commission. This means that organisations that are currently based outside the UK, whether for taxation purposes or otherwise, would need to jump through a number of administrative hoops just so that they can continue doing what they are currently doing.
The idea behind the proposal, according to the official announcement, is to protect consumers, which includes preventing underage persons from being able to gamble online and being able to identify suspicious betting patterns that might be a sign of untoward activities taking place. We of course applaud such endeavours, but some commentators are voicing their own suspicions that the proposed legislation might also open the way for future changes to the tax system.
Many traditional UK sportsbook businesses moved their organisational headquarters away from Britain because of what they viewed as unreasonably high taxation. Having uprooted themselves and gone through one extensive transition process already, those companies won’t be too pleased if they soon have to go through another round of paperwork to continue delivering online gambling services to customers in the UK.
When announcing his proposals, the Minister for Sport said: “Online gambling has changed significantly in recent years with many European countries taking new approaches to regulation. It would be wrong of us to stand still where things are changing around us - especially where the protection of British consumers may be at stake.
“The new system outlined today will also ensure that all businesses offering online gambling to our consumers adhere to our rules – not someone else’s. The Gambling Act is already one of the best regulatory frameworks in the world and these changes will ensure that it sets the standard for all online gambling companies that target British consumers.
He added: “This is also about making sure overseas firms contribute their fair share towards regulatory costs and vital services like problem gambling treatment.”
The proposals have already sent shockwaves through the online gambling industry, and it will certainly be interesting to see how things develop from here. The good news for the consumers themselves is that whatever happens, online casino gaming itself isn’t threatened, so you will be able to continue enjoying your blackjack, roulette and sports betting for a long time to come.
Article Published: 11/11/2011 10:40:36
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