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PROPOSED U.K. GAMBLING CHANGES ARE A POTENTIAL MINEFIELD
Thursday August 11, 2011 : Gambling group chief warns that Brit government is "stepping into a minefield" with online gambling proposals
Ralph Topping, the outspoken chief executive of the giant online and land gambling group William Hill plc, has warned the British government that it is in danger of "stepping on a minefield" with its recent proposed changes to the licensing and taxation of internet gambling operators, reports The Chronicle newspaper in Gibraltar.
Topping was reacting to proposals recently announced that offshore internet gambling operators wishing to access the UK market would have to accept a secondary licensing and taxation regime, which Topping described as unfair and an example of “different departments doing their own things”.
William Hill moved its online operations to Gibraltar two years ago to avoid punitive UK taxes and better compete in a tough market. But despite the prospect of the bookmaker losing the tax benefits from its relocation, Topping said there was not “a chance in hell of us coming back from Gibraltar” this week.
Last month the UK government's Department for Culture, Media and Sport announced the new measure, and a few days later that was followed by a UK Treasury confirmation that there would be tax implications for Brit operators that have moved offshore who wish to take internet action from UK punters.
Topping told The Times newspaper: “If [politicians] act holistically, people might think that was a reasonable approach, but if they salami slice things, they’re in danger of making huge mistakes and getting into legal territory they wouldn’t enjoy.”
He added that Gibraltar had become “the hub for online gambling activity in Europe”, saying: “The [UK] government will have to get their thinking caps on if they are going to make the UK more attractive to these technology companies.”
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