U.K. Government Seeks to Make Britain Internet Gambling Haven

 
In striking contrast to the U.S., where online gambling is under siege by neo-Puritans, government ministers want to attract offshore companies to the U.K.

A new bill is in the works to make the U.K. even more hospitable to online gambling companies, and the government's Department for Culture, Media, and Sport (DCMS), has already lobbied the Treasury Department for online betting and gaming firms to introduce an easy tax regime.

U.K. Government officials have met with executives from the Internet gambling industry on 26 separate occasions.
Just two months ago, Richard Caborn, the government official in charge of gambling, traveled to Gibraltar, the headquarters of Party Gaming and 888.com. Then, Tessa Jowell, the culture secretary, said she planned to host an international summit of politicians at Ascot racecourse to discuss International regulatory standards.
Officials from the European Commission and the major credit card companies have all been invited, as has the U.N. the government said.  

The government’s desire to take the lead in the online gambling sector is spelt out in a briefing note written by Mark Davies, managing director of Betfair, the online betting firm.

Her Majesty's Treasury

"It is government-wide policy, and that includes HMT (Her Majesty’s Treasury), that Britain should become a world leader in the field of online gambling, in order to provide our citizens with the opportunity to gamble in a safe, well-regulated environment," said Davies.  
The Treasury is also deciding on a new tax plan for online betting firms, which are already allowed to operate onshore. Bookmakers, such as Ladbrokes and William Hill, have argued that online companies should pay higher rates of tax, Davies reported said such a move would “kill” Betfair. 
The government has settled on a 15 percent tax on gross profits for online operators — the same rate that applies to traditional bookmakers. The policy is said to have “delighted” Betfair, according to another DCMS report.
Papers released by the Treasury also showed officials are considering ways to attract other Internet betting firms that have been repeatedly persecuted in America.

Clarity on Taxation

“The industry needs clarity on taxation issues, as this is a crucial factor shaping investment and location decisions, especially for remote operators," the briefing note said.  
The gaming industry has asked the government to consider a system of “secondary” licensing, which would give them the British regulatory “stamp of approval” while retaining the tax benefits of remaining offshore.
Sportingbet, whose shares fell 64 percent last Monday in the wake of the new draconian American law, has received takeover bids for its U.S. business.

But, the company has commissioned legal opinions to determine the impact of the American legislation, executives said, and, though the firm has been contacted by several investors wanting to buy its American operations, a sale is not the only option being considered, the company said.

© Copyright 2006 Online Casino Crawler This material may not be published, broadcast, rewritten, or redistributed.