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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.

 

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