The government is always going to stick its fingers into the mix when money is involved and the world of online gambling is no different. In the British Isles, the government is moving forward to initiate new regulations for online gambling establishments based in the UK. It all boils down to taxes. Revenue is essential for governing bodies and an attempt is being made to gain jurisdictional control. The online gambling establishment is not pleased with the proposed changes.
Make Way for the Gambling Licensing and Advertising Bill
The new legislation has been passed by the House of Commons. In essence, the bill means more money for the government.Any online casino or gambling establishment that is based in the UK will be required to obtain a license that will be provided courtesy of the UK Gambling Commission. However, it should be noted that the bill still needs to make its way through the House of Lords in order to take effect by May of 2014. Online gambling operators have high hopes that evidence will be produced in opposition to the proposed legislation.
The Remote Gambling Association Says the Stakes are Too High
Should the bill be passed, a fifteen percent consumption tax would be imposed. The Remote Gambling Association believes this amount is too much of a burden and is negotiating for a ten percent consumption tax. The government’s response has not been favorable, stating the tax should be established for a one year trial period. Modifications could be made after that point if deemed necessary. Members of the Remote Gambling Association fear that the new taxes will have such a detrimental impact that online gambling establishments will not be able to remain in business. Time will only tell as to the final outcome. Industry insiders believe gamblers and online casinos will find a way around the new regulations, blocking the governments efforts to raise revenue. A spirit of cooperation would be more beneficial for all parties involved in order to come to an acceptable agreement on both sides of the table.