Offshore gaming is facing a major shake-up under Government plans to force overseas operators selling or advertising their services in the UK to get a licence from the Gambling Commission.
The move is designed to bring overseas companies into line with those in the UK, and could result in companies based in low-taxation regimes paying the same 15% tax on their UK gross profits as paid by UK-based gambling operators.
At the moment, any gambling operator who wants to offer its services in the UK must be licensed or regulated by one of the states approved by the Gambling Commission. Licenses issued in these so-called “white listed” countries are treated as having been issued in the UK.
But according to gaming minister John Penrsoe, the fact that overseas operators can take bets in the UK “without bearing a fair share of the costs of regulation” or of the treatment of problem gambling is unfair.
“The current system for regulating remote gambling doesn’t work. Overseas operators get an advantage over UK-based companies, and British consumers who gamble online may have little or no protection depending on where the operator they deal with happens to be based,” he said in a statement.
Many high street bookmakers, including Ladbrokes and William Hill, have moved their online operations abroad. The online gaming marked in Europe will be worth €12.3bn by 2012, according to Government figures.
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