The UK’s new gambling laws were put in place to regulate the industry and to encourage responsible gaming.
Online casinos were given the green light and can now even advertise on television. So why are online casinos and bookmakers increasingly taking their business overseas?
The problem is tax. As one of his last acts as Chancellor, Gordon Brown decreed that tax on online gambling would be 15%. When a business can relocate to sunny Gibraltar or the Channel Islands where the tax is much lower, the UK hardly presents an attractive option.
Totesport Casino, the online branch of the Tote (the government-owned bookies) is packing up shop and moving to Alderney. It makes simple business sense.
Since Alderney, one of the Channel Islands, is on the government’s White List, Totesport will still be allowed to advertise in the UK, but will avoid the costly taxes and stricter regulations. It doesn’t look good for the government.
Brits are huge fans of online casinos and poker, which is why the government chose to regulate, instead of imposing a US-style ban. But it seems they may have been too greedy and so will end up losing out.
Friday, January 4, 2008
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment