Controversial UK legislation receives approval

If passed, the draft Gambling (Licensing and Advertising) Bill would amend existing regulations governing online casino and telephone wagering for UK-based players and also see operators selling into the British market required to inform the Gambling Commission regulator of suspicious betting patterns involving home-grown customers in addition to contributing towards the research, education and treatment of problem gambling and regulatory costs.

The new proposals from the Chancellor of the Exchequer, George Osborne, would moreover see the rate of duty charged on machines played in betting shops increase to 20 % of net takings and replace the amusement machine license duty and the value-added tax (VAT) previously paid by betting shop operators.

“We support the principle that gambling should be regulated on a point of consumption basis; where the consumer is,” read a statement from the Culture, Media and Sport Committee.

“We note the concerns raised about taxation of the online industry. The Government stated that the ability to bring all operators serving UK consumers within the tax net is a consequence but not the prime motivation of the draft legislation. We note in this regard that, in setting a tax rate for remote gambling, the Treasury should bear in mind that too high a rate would be liable to drive customers and companies into the unregulated black market.

“The Government and the Gambling Commission assured us that the Commission had at its disposal all the tools it needed for effective enforcement and that the extra income expected from the extension of the licensing regime would produce sufficient funds to pay for the extra work of enforcing that regime without the need to raise licence fees. We intend to monitor these areas.”