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UK Gambling Secondary Licensing

Thursday July 14, 2011 : Government announcement imminent.
 
The British media are reporting that a parliamentary announcement yesterday (Wednesday) by a government minister heralds the imposition of the much debated 'secondary licensing' regime, designed to enable British-licensed online gambling firms to better compete against offshore operators who access the UK market, but pay lower taxes in their jurisdictions.
 
John Penrose, the minister for tourism and heritage for the Department of Culture, Media and Sport, announced that legislation would be tabled on Thursday, requiring a licence fee to be paid by those active in placing bets on racing, and other sports, as well as gaming activities, with firms outside the UK.
 
Specific details of the amounts involved, and the distribution of what is perceived as a new betting tax, have yet to be clarified.
 
Since major bookmaking firms such as Ladbrokes, William Hill, Betfred, as well as Betfair, moved to more benevolent tax jurisdictions offshore, many millions in revenue have been lost to the Treasury, as well as contributions to horse racing through the Levy.
 
It has been suggested that the government could ban advertising in the UK by offshore gambling companies unless they hold a British licence in addition to one from their offshore jurisdiction of choice.
 
The Remote Gaming Association, a trade body representing the interests of online gambling companies, immediately reacted to the announcement, saying that it would play a constructive part in developing the system.
 
Clive Hawkswood, the RGA’s chief executive, said: "Now that the Government has confirmed its intentions, we intend to play a constructive part in the process to ensure that the new regulatory and tax regime will provide an environment where Government objectives can be achieved; where the industry can succeed commercially in the global online gambling market; and where the interests of consumers continue to be properly safeguarded.
 
"The main players in the UK online gambling market are predominantly based offshore, but they already adhere to high regulatory standards which are comparable to those in Britain. Regulation by the Gambling Commission therefore holds no fears for our members, but a significantly higher tax burden that could lead to a reduction in value and choice for consumers certainly does.
 
"It is therefore clearly crucial that any new regulatory regime is complemented by a fair and sustainable fiscal regime. We look forward to working with DCMS, HM Treasury, and the Gambling Commission to ensure that all of these issues can be successfully addressed.’

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Gambling News :

Is Gibraltar Out of Luck in US Tax Challenge - Gibraltar's challenge to the UK 15 percent point-of-consumption tax on online gambling operator revenues has already failed in the UK High Court, and it looks as if it may be rejected by the European Court of Justice too.

Quickspin are now available in Denmark - #quickspin The roll-out strengthens the long-standing partnership between the supplier and the operator, with Quickspin games already available on Vera&John’s websites around the world.

UCypher Launches - Indian entertainment and media entrepreneur Ronnie Screwvala has announced the formation of UCypher, an eSports tournament in which ten teams will compete.

Extreme Live Gaming In deal With Betsson - Extreme Live Gaming, a subsidiary of the Novomatic Interactive group, has announced a live dealer product deal with the Betsson online gambling group, with an initial launch planned for Betsson.com, followed by other brands in the Swedish group's portfolio.

Expansion Mode For BoyleSports - The Bambury premises are situated in Kildare, Meath and Dublin and will be refurbished and rebranded after acquisition, with the total of 31 staff remaining in employment..

Safecharge Q4-2016 - Online e-cash processing firm Safecharge, where Playtech's Teddy Sagi is a majority shareholder, released a trading update on its Q4-2016 performance Thursday, flagging record transaction processing volumes and revenues.

ASA Most Controversial Ads of 2016 - Paddy Power's penchant for advertisements that cause a stir saw the betting company mentioned twice in the Top Ten most controversial adverts of 2016 released by the Advertising Standards Authority in the UK Thursday.

Yggdrasi To Enter Italian Gambling Market - Yggdrasil’s Italian offering will include the company's collection of in-game promotional tools, BOOST, improving gamification, and the social sharing tool, BRAG. The company’s mobile product will also be available on its HTML5 iSense 2 platform.

888sport is the latest to join sports betting integrity body ESSA - Major operator 888sport is the latest to join sports betting integrity body ESSA with the company adding its customer base and betting market platforms to ESSA’s global anti-fraud alert and reporting system.

First partypoker live event to be held in Russia - Partypoker’s new live tour will kick off in Russia on March 24, 2017 at Sochi Casino and Resort in association with Club Poker Management. Online Day 1’s will start on partypoker on March 12, 2017.

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