Level Playing Field
Part of what makes the regulation system for online casinos held in place by
the British government is that they spend a significant portion of that tax
money on fighting problem gambling. However, the minister of sports, Gerry
Sutcliffe, does not believe the government is receiving enough money from online
casinos, particularly online casinos operated by offshore companies.
If Sutcliffe and several like minded politicians in the British government
are successful Internet gambling firms in jurisdictions like the Isle of Man,
Gibraltar, Malta, Alderney, and Antigua will have to pay a higher tax in order
to continue enjoying the white list status in the United Kingdom that allows
them to advertise their services.
In the United Kingdom operators of brick and mortar casinos and online
casinos have to pay an extra tax in order to combat problem gambling within the
country. It is the opinion of several British bookmakers and members of
Parliament that it is unfair that online casinos being allowed to operate and
compete in the same market do not have to pay the same tax.
Such a tax is no small contribution from British based gambling business.
Bookmakers in the United Kingdom paid 10 percent of their gross profits to the
Horserace Betting Levy, roughly GBP 100 million each year.
Sutcliffe is working with the Gambling Commission to figure out a fair system
of payment that will create “a more level playing field between British
businesses and their overseas counterparts”.
The Gambling Commission may also require gambling companies with offshore
servers like 888, Sportingbet, Betfair, and PartyGaming to contribute to funds
to treating problem gambling and regulating the gambling industry.