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UK Gambling Act Under Review

Monday June 20, 2011 : Independent report claims laws limit operator capacity; tax too heavily
 
The independent business services firm Ernst and Young has published a report on the UK Gambling Act commissioned by the National Casino Industry Forum...and its findings are not happy conclusions.
 
Reporting on the study, the Telegraph newspaper notes that the Gambling Act 2005, which was expected to create more land casinos, has in fact limited the capacity of existing casinos to create new products.
 
Fixed stakes rules and quotas for gambling machines have left casino operators unable to absorb rising costs by passing them on to customers, and there has been a long term erosion of margins since the changes were introduced.
 
The study underlines the fact that the industry has seen a significant increase in its tax burden, Ernst and Young said, following the replacement of the casino duty rate of 2.5 percent with a starting rate of 15 percent – a 500 percent increase.
 
Just two months ago the Culture Secretary, Jeremy Hunt, said the Act “hasn’t worked” and there had been a “whole series of problems with it”.
 
The Government is currently reviewing maximum stake limits and premises entitlements – which are currently staggered by size of casino – for gaming machines.
 
Michael Silberling, president of the National Casino Industry Forum told the newspaper: “It’s time to take some of these words and put them into action. I think the UK would be grateful for more jobs, more capital investment and more taxes. The time is now, not later.”
 
The report makes a series of recommendations which could revitalise land casinos and generate an additional GBP45 million in annual revenue for the Treasury:
 
* Gaming machines that are legal outside casinos should be allowed in them,
 
* Local authorities should be given greater power to decide the location of casinos
 
* A five-to-one machines to tables ratio should be extended across all casinos.
 
* Casinos can currently only operate in one of 52 'permitted areas’ and these restrictions should be lifted so dormant or “underperforming” licenses can be switched to local authorities that want a casino, stimulating jobs and capital investment.
 
The casino industry, one of the most regulated form of gambling because casinos traditionally offered the highest stakes and jackpots, feels it is increasingly disadvantaged compared to other less regulated forms of gaming, including online gambling, the report notes.
 
Several major UK gambling companies have already moved their online operations offshore due to heavy taxation rendering them less competitive.
 
Silberling opined that the GBP45 million estimated extra tax take if the changes were implemented was a conservative estimate. “We think it’s closer to GBP100 million and we could create 5,000 jobs,” he said.

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Gambling News :

Tain Fast Bet - Our readers will recall Tain recently increased the number of live events it covers each month to 23,000, covering both traditional markets such as football, tennis and US sports and the more obscure curling, biathlon and Water Polo.

Olympic Entertainment Group Mobile Gaming - In its full-year 2016 report, Olympic Entertainment Group (OEG) has informed the establishment of a Malta-based company registered to facilitate its intended expansion into remote gambling.

Circus Evolution HD Slot - Malta-based content provider World Match has released its first title of 2017, “Circus Evolution HD”, a 5-reel, 3-row, circus-themed adventure offering Free Spins, Wilds and a Bonus Game.

Kindred Group Gets EU Recommendation on Consumer Protection - Kindred Group (formerly Unibet) has become the first operator to successfully meet the requirements of the EU Recommendation on Consumer Protection and Responsible Gambling following an external audit.

17 Crown people still detained - Reports from China over the weekend suggest that the 17 Crown people still detained could be looking at another twelve months of imprisonment as investigations into their alleged and still unspecified crimes drag on

SB1400 Virginia Poker Skill Game Bill - Her bill SB1400 is currently with the Senate General Laws and Technology Committee, whose 15 members will decide whether to progress it or condemn the Senator to another year of failure.

Pennsylvania Video Gaming Association - With the focus on Pennsylvania as the most likely next US state to legalize online gambling as part of a general gambling expansion measure, reporters noted this week the emergence of a new lobbying group in the state - the Pennsylvania Video Gaming Association.

Stiffer Problem Gambling Penalties in UK - The Guardian newspaper reports that the UK Gambling Commission plans to unveil new enforcement strategies on problem gambling and money laundering prevention this month, laying down tougher penalties for operators who fail to tackle these issues.

Malaysian police Destroy over 5000 Gambling Computers - Malaysian police in Kajang have destroyed 5,042 computer sets seized in online gambling raids over the past two years, explaining that the action is designed to take the machines out of circulation.

Spartan Poker vs SpartanPoker name War - Pokerguru, which owns the brand SpartanPoker.com, has threatened to sue the Indian Poker Championship over its use of the title Spartan Poker, and recently published a notification that it is not associated with the IPC version of the brand.

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