esearch firm GamblingData published a forecast recently indicating that the UK online gaming market will be worth us$ 4.15 billion by 2015. If the point of consumption tax is set at 15% and calculating a rate of compliance at approximately 92.5 %, GamblingData suggests the UK Treasury could garner up to us$ 584.8 million from tax revenue in 2015.
Operators are still warning government officials currently drafting the reforms on internet wagering legislation that the higher the tax rate the less likely the firms located in the United Kingdom will stay there. The data generated does take into account the changing internet wagering industry and the consolidated efforts of firms located in other jurisdictions.
As the industry located in the U.K. becomes less varied and larger operators take over the competition there is the pending fear that business will fall away as the tax rate becomes less attractive to operators and customers. The last time the government of the U.K. proposed changes in the regulated online gambling operators moved there headquarters to other jurisdictions where the rate was a stable element that they could depend on.
The move didn’t affect their operations in the U.K. because of ‘white listing’ enabling firms from Gibraltar to offer their services in the U.K. Operators need to know where they stand with regards to taxation and license fees so any change proposed for their industry is disruptive and disconcerting.
Some operators are taking the government of the U.K. to court over the legality of these proposed new tax levies. It will be a long hall for both the government legislatures and the internet gambling industry until fairness and equity is established.