Earlier this month the second reading of legislation that will force all online gambling operators with UK customers to be granted secondary licensing and pay taxes in Britain passed with very few problems.The Gambling (Licensing & Advertising) Bill has support from all parties and looks as if it will be implemented by December 2014. The discussions during the second reading did mention the possibility of a lower taxation rate, however, it mainly highlighted that most politicians do not have a good knowledge of the industry or online gambling.
The legislation ensures that all gambling operators will be taxed on their profits from UK customers. At present operators can avoid UK taxes by basing themselves offshore, the new rules are designed to bring in more revenue through taxation, but also to ensure a fair playing field for all operators.
The UK’s Gambling Commission believes that UK remote gambling is worth over £2 billion per year. It is thought that an additional £300 million per year in tax revenues will be brought in once the new rules are implemented.
Sajid Javid, the Economic Secretary to the Treasury said, “It is unacceptable that gambling companies can avoid UK taxes by moving offshore, and the government is taking decisive action to ensure this can no longer happen in the future.”