Radical Tax Reforms Predicted for U.K.Online Gambling

Published Wednesday, March 02, 2011 - Online-Casinos.com

The situation in the United Kingdom regarding the operation of online casinos or sports betting books and just about all other forms of wagering on the internet is about to see a drastic change. The recent examination by the U.K. government into those offshore companies that operate in the U.K. market without having to pay local taxes or obtain licenses has the industry speculating about the possible outcome of the consultations.
Online gambling firms are saying that if they were not given a tax advantage they would not be able to sponsor so many sports organizations and provide advertising deals for the promotion of sports and other events. Currently operators that are licensed in the jurisdictions of The Isle of Man, Gibraltar or Malta are at a great advantage. Those firms don’t pay more than one percent tax compared with the 15 percent they would face on the British mainland.
Large operators such as Ladbrokes, William Hill,   PartyGaming , and Sportingbet, are all licensed in other jurisdictions but operate primarily in the United Kingdom’s lucrative and legal gambling market.
The consultations will be presented to the Government in Britain in a short while and the verdict in all fairness looks like taxation changes will affect some companies. It looks like even though some large U.K gambling firms who exited the U.K. to save enormous amounts of tax are going to be saddled with some sort of extra tax anyway. It is obvious that the current situation really isn’t fair to all the operators trying to make a living from online gambling in the U.K. market.

It is a choice for the government where to take the tax. Marketing firms pay taxes on the money they make from the offshore gambling industry and sports clubs and event organizers benefit greatly. The government may just be strangling the goose that lays the golden egg.

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