Home » OCW News » March 2010 » UK Gov May Have Last Laugh at Relocated Gambling Firms

UK Gov May Have Last Laugh at Relocated Gambling Firms

Date published: 30 March 2010

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Although the UK boasts one of the most liberal online gambling industries in the world, given that the popular activity is legalized and regulated, and even the advertising thereof is permitted, it's not without its problems, namely its high online gambling taxes and levies which has driven many operators offshore.

When the government ignored their complaints, large UK land and online gambling firms Ladbrokes and William Hill moved their headquarters out of the UK to more 'tax-friendly' gambling jurisdictions. But it may be the UK government that has the last laugh if its new offshore licensing requirements come in to effect.

According to reports, the Department for Culture, Media and Sport is looking at introducing new license requirements for online gambling firms based offshore as a result of protests from UK-based betting and racing authorities and companies that claim offshore firms have an unfair advantage as a result of lower taxes.

A consultation on the introduction of new license requirement was launched this week by the Department for Culture, Media and Sport and came about as a result of an announcement made by UK Sports Minister, Gerry Sutcliffe, in January this year, that something had to be done to 'level the online gambling playing field.'

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It was Sutcliffe's contention that a process should be introduced whereby online gambling companies based outside of the UK wishing to target UK gamblers would have to apply for a 'secondary license' from the UK Gambling Commission. Presumably, this license would come attached with additional costs and fees.

There is a 12-week consultation period with regards to the proposed offshore online gambling license which will close on Friday, June 18. It will no doubt be interesting to see how the offshore online gambling firms react to this offshore license, particularly those that left the UK less than a year ago at great expense.