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UK Indicates Tougher Enforcement of Gambling Levies

The UK government’s Department of Culture, Media and Sport this week announced proposed reforms to the regulatory gambling framework, including provisions to clamp down on off-shore operators escaping taxes such as the UK Horserace Betting Levy. 

Sports minister Gerry Sutcliffe announced that all operators who want to target British consumers must be licensed by the EU Commission. Government officials have been keen to stress that the decision is based on protecting British consumers by enforcing requirements that operators report suspicious betting patterns, comply with EU software testing requirements, age verification, self-exclusion and technical standards. Leading firms already have strong records of social responsibility, so legally enforcing these standards should not significantly impact the industry.

Yet industry experts were less optimistic about the government’s motives. PricewaterhouseCooper’s head of gaming, David Trunkfield, said, "You don't have to be too cynical to think that this is also going to be a way of raising tax."

No poker or casino websites currently conduct their business through a Gambling Commission licence or pay any tax to the UK, a situation that has been attributed to Gordon Brown’s move as chancellor to set the tax rate for internet gambling firms at 15 per cent of gross profits. Industry spokesman described the rate of tax as punitive, but it has so far failed to enhance the government’s tax revenues given firms have opted to operate out of “white listed” offshore tax havens, such as Gibraltar, the Isle of Man and Malta.

Until now these zones allowed firms to advertise in the UK while avoiding levies, but with the enforcement of licences from the Commission, this situation looks certain to change.

 A spokesman for Mr. Sutcliffe conceded that the proposals were informed by other successful reforms in European countries. Last year Italy introduced gambling licences for all online poker and bookmaking sites, setting business tax ranging from two to five per cent. The Italian government has subsequently seen tax revenues rise across the industry.

The Right2bet campaign agrees with Mr. Sutcliffe’s assessment that the Gambling Act is among the best regulatory frameworks in Europe, given the open competition it permits between organisations, offering the consumer the greatest possible value and choice over operator. The Italian licensing system has seen permits restricted against leading operators with strong commitments to consumer standards. The Right2bet campaign hopes that the UK does not follow suit by blocking operators from the market, or burden consumers with extra charges passed on from the high tax regime.

 The Right2bet campaign continues its pursuit of an open gambling market across the EU.  The petition can be found at www.right2bet.net

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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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