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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.”



Gambling News :

NHL Odds: Penguins vs Rangers - The 27-18-7 Pittsburgh Penguins have won six of their last seven games to move back into third place in the Metropolitan Division. On Wednesday (8 PM ET, NBCSN), they'll visit the second-place New York Rangers, who have won six of eight to improve to 30-18-5.

NCAAB Odds: Tigers Roar Heading into South Carolina - The LSU Tigers are at the top of a crowded SEC with the South Carolina Gamecocks just one game behind. The Tigers, led by super-freshman Ben Simmons, travel to face the Gamecocks on Wednesday in one of the marquee matchups of the midweek schedule. Tip-off is at 7 PM ET.

HB619 Updates : Pennsylvania sports betting bill - Legalised sports betting in Pennsylvania took another tentative step forward Tuesday when the state House Gaming Oversight Committee voted strongly to progress HB619

UNIBET POSTS A STRONG FOURTH QUARTER - #unibet Online gambling group Unibet has published a strong set of fourth quarter and full year results, highlighting the following achievements:

Pokerstars 10th anniversary Sunday Million $10 Million Guaranteed - On March 20 this year Pokerstars intends to celebrate the 10th anniversary of its popular $215 Sunday Million online poker tournament in a big way...it has allocated a massive $10 million to the guaranteed prize pool, ensuring that the winner will walk away withat least $1 million.

SBTech signs deal in Latin America - #SBTech Sports betting software supplier SBTech has signed exclusive agreements to provide two of Latin America's biggest regulated operators with its award-winning omni-channel sports betting solution.

Dansk Underholdning Launches - NYX Gaming Group has announced the launch of Dansk Underholdning on its OGS platform, with a full suite of games suitable for the expanding Danish iGaming market.

Pokerstars to remove regular heads up cash games - Regular heads up players were told in email communications that as of Friday 12th February No Limit Hold'em, Fixed Limit Hold'em and Pot Limit Omaha Heads-Up regular tables will be removed and will be replaced with Zoom pools.

Unibet to Renovate Maria Brand - Online gambling operator Unibet has announced that it is to renovate its subsidiary online brand Maria later this (February) month in a project that will include a new website and brand refurbishment to make the operation more appealing to both men and women.

PBS Frontline New York AG case against DFS - #draftkings #fanduel Tuesday night's much anticipated PBS "Frontline" examination of the daily fantasy sports phenomenon provided a useful platform for New York Attorney General Eric Schneiderman to pre-publicise his judicial action against leading operators

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