WARNING ON UK INTERNET GAMBLING SECONDARY LICENSING AND TAX

01/03/2012 : Independent survey says online gambling tax plans may drive punters to unregulated sites.

With momentum in the UK building for a 'secondary licensing' regime and taxes, the William Hill gambling group has gone on the offensive as the new year starts, again drawing attention to an independent survey it commissioned.

The study, conducted by respected international professional services group Deloitte, found that the British government's proposals for a point of consumption tax on online gambling could backfire, with punters driven to unregulated sites, and smaller operators forced out of the market.

Deloitte concluded that levying such a tax at 10 percent would seriously hurt the government’s “consumer protection policy objectives”. It additionally found that as much as 27 percent of current revenues would disappear into the “grey”, or unregulated, market. And at 15 percent tax, that figure rises to 40 percent.

The survey found that the most marginal operators, accounting for up to 13 percent of UK online bets, could be “expected to exit following the introduction of a 5 percent tax”. That would not only push more UK punters into the unregulated market, but there would also be a knock-on effect on gambling companies’ revenues and marketing spend, hitting both corporation taxes and sports sponsorship.

William Hill has submitted the report to the Treasury, which is reviewing a possible new tax regime for remote gambling.

The Telegraph newspaper, reporting on the Deloitte study, says that UK consumers currently spend about GBP 1.7 billion a year – roughly 18 percent of total UK gambling revenues – with online gambling companies. At present many companies - including William Hill plc - escape the 15 percent gross profits tax levied in the UK by locating their internet operations in tax havens like Gibraltar, Malta, Alderney and the Isle of Man.

The new proposal would see any operator wishing to access the UK market being required to take out UK licensing and pay an as yet unquantified UK tax rate, on grounds that online gambling takes place at the point of consumption i.e. the player's hardware.

Deloitte points to the US, France and Italy in illustrating that attempts to control online gambling have “failed to prevent the emergence of a large unregulated sector”, not least because of the difficulties of introducing enforcement mechanisms such as blocking internet service providers or types of financial transactions.

Ralph Topping, chief executive at William Hill, told the Telegraph: “Money will always find a way out. More people will go overseas or to fly-by-night, unregulated sites where the consumer is not protected. I hope the Government sees sense on this.”

Assuming “ineffective enforcement”, Deloitte finds that a 15 percent tax rate would bring in incremental tax of GBP 116 million after adjusting for a GBP 57 million fall to GBP 76 million in corporation tax. That would be at the price, however, of exposing many more consumers to unregulated, and possibly unsafe, gambling sites.

A Treasury spokesman said: “Responses to the review are in and are being analysed.”

Is there a place for AI in poker? - If you are into the technology, you have certainly heard about Artificial Intelligence (AI) at least a few times. The word has become even more popular over the course of the last few years, especially with an introduction of another buzz word

MLB Odds: Mets vs. Dodgers - Injuries have kept the New York Mets (31-37, –14.14 betting units) from being all they can be this year, but they expect to have Steven Matz on the mound for Wednesday’s game against fellow southpaw Rich Hill and the Los Angeles Dodgers (44-26, +7.56 units). First pitch from Chavez Ravine is 10 PM ET on ESPN.

NBA Odds: Warriors Down Cavs in Game 5, Reclaim Title - It took a game longer than they would have liked, but the Golden State Warriors are once again the NBA champions. They beat the Cleveland Cavaliers 129-120 Monday night to eliminate the Cavs (+9 away) in five games and reclaim the Larry O’Brien Championship Trophy.

Vikings’ Victory Slot Launches - The game’s impressive graphics take you to the sea side, where a longship sits beyond the reels. Mountains and trees make up the background, and smoke can be seen billowing from beyond the screen. The five reels are on a sail, with 25 paylines marked by red flags.

50 WSOP Seat Satellite - Sunday, July 2nd at 3pm ET, two just days before the Fourth of July holiday, Americas Cardroom is running a 50-seat qualifier to the 2017 WSOP Main Event in Las Vegas.

NHL Odds: Series Tied Heading Back to Pittsburgh - As quickly as Pekka Rinne lost his game in Pittsburgh, he found it again in Nashville. After Game 2, there were murmurings that Rinne wouldn’t start the next game. Predators Head Coach Peter Laviolette decided to stick with his goaltender, however, and Rinne led his team to two consecutive victories at home while stopping 50 of 52 shots.

Huge Win at Bitstarz Casino - There has been plenty of big wins being landed at BitStarz lately, and yesterday, it was time again. Surprisingly it was yet another Amatic game that made one lucky player extra happy as he raked in an incredible $112,402 during an evening of intense playing.

Beautiful Bones is the latest game release from Microgaming - Beautiful Bones is a five reel, 243 ways to win, visually superb slot. The Day of the Dead-inspired slot features vibrant and elaborately decorated reels, which truly bring this game to life.

NBA Odds: Can Warriors Keep up the Pace in Cleveland? - The Cleveland Cavaliers head back home down 0-2 in the 2017 NBA Finals after losing the first two games straight up and against the spread to the Golden State Warriors by wide margins. Game 3 is Wednesday at 9 PM ET on ABC.