Online Gambling Taxation in U.K. May Increase Soon

Published Saturday, May 14, 2011 -

When a government sees that it can make extra money taxing things that people like to participate in they look for a way to make the customer ante up and when they can’t get those revenues directly from the consumer they go for a tax on the supplier. Those costs are usually passed on to the consumer eventually and either way governments all over the world get their slice of the pie.

In the U.K. online gambling has been legal and regulated for years and the industry has flourished at an incredible rate. The government has made the past time safe and acceptable by keeping operators honest and fair. This liberalized system in the U.K. may be looking at changes though in light of other governmental positions in other parts of the world. A few examples such  Germany which has just proposed the introduction of a prohibitive tax regime on the industry and the US Department of Justice clamping down on some very large firms that offer online poker for alleged illegal behavior.

France recently introduced an online gambling regulated offering that has operators wondering why they are trying to service the jurisdiction. Taxes and regulatory expenses are very high for the amount of business generated. Any online casino that wants to operate in the French market has to have a gaming license issued by the government and therefore pay hefty taxes.
In the U.K. operators enjoyed a simple and reasonable system but now those offshore operators based in locations such as Gibraltar, will no longer be privilege to tax reductions or exemptions and will be forced to comply with regulations where the services are offered.
Unlicensed gambling operators represent eighty five percent of the estimated 14000 plus online gambling sites available to consumers in the European Union according to a recent European Commission report.  British politicians are looking for more revenues from this lucrative market paying attention to the need in these tough economical times.


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