Internet Gambling Providers
Important news concerning the online gambling market in the UK was announced by the British Chancellor of the Exchequer. As George Osborne stated two vital points, which he made very clear while he was giving his budget speech on the 21st of March. These points are as followed, the first one is related to offshore gambling and operators. As he stated that offshore internet gambling providers who provide services within the United Kingdom’s market will be exposed to more taxes, and will be required to go through a secondary licensing. The second point is concerned with how to define internet gambling. And it was stated that it would be defined in the place of the service usage, regardless of the operator’s location.
Online Gambling Going Off Shore
The main purpose and aim of such decisions would logically be to bring more profit revenue to the government and the economy. But this isn’t the only purpose, as George Osborne, the Chancellor of the British Exchequer is on a quest to bring back the British operators for online gambling who left the country and went off shore for better and lower taxation system and lesser regulations. And by carrying out these two points, he will set up a fair market, where no operator will have the upper hand or more advantages based on his location. This was made clear in his statement when he said that more than 90% of the internet gambling services that are being catered to the people in the United Kingdom is supplied by off shore operators. And the remaining ten percent of the operators who are still in the UK are either leaving, or thinking of leaving to an off shore location outside of the United Kingdom.
And he commented on these statistics by saying that this isn’t fair play, plus, it is against the benefit of the UK residents in terms of supplying job opportunities. And that’s why he plans to imply these two points in order to implement the double taxation on the off shore gambling operators so he can create an even and a fair medium for all operators.
The government has been planning to imply these proposals for a long time now, almost a year. And it has been made known to the public for quite some time, to be exact, since the Department for Culture, Media and Sport released a study reviewing and criticizing the current gambling law. But there has been a lot of doubts and a lot of debates concerning the legislation that made every one wonder if the government would actually do it or not.
But after the statements made by the Chancellor in the budget speech, these doubts are long gone, as it has been confirmed that the government will actually go through with it. Hence, the budget of the Treasury has made the needed calculations. It estimated that the profit revenue for the government from these taxes would amount to an additional 55 million pounds between 2014 and 2015, and an additional 240 million pounds in revenue between 2015 and 2016. These calculations signal that the government will carry out these new laws in the next two years.