The report, commissioned by the Association of Remote Gambling Operators, whose membership includes all the big UK bookmakers, states that the UK Government\’s hopes to become the centre of the booming online gambling industry are likely to be dashed unless they reduce the potential tax liabilities for online gaming operators.
“The tax liabilities British-based operators would face are likely to be too high. The opportunity to regulate remote gambling operators might be lost if regulations and taxes are set with no regard to the commercial realities facing operators,” says the report.
“Quite simply, Britain could have the best gambling legislation and regulation in the world, but it will be to no effect if the tax regime acts as a fundamental disincentive for gambling operators to be based in this country,” said ARGO Chairman, Ian Spearing (William Hill).
There is no incentive for any of the major bookmakers to relocate to the UK, and its unfavourable tax regime, when a number of other viable low-tax jurisdictions, including Malta, the Isle of Man, Alderney and Gibraltar, are offering remote gambling operators with favourable tax and regulatory regimes.
“It is unlikely that remote-gaming operators seeking to compete internationally will relocate all their business into Britain. Only online betting companies that serve almost exclusively British customers are likely to locate their operations in Britain,” adds the report.
“The Government should be careful not to price the UK out of the market,” says the report\’s author John Spicer.
Despite the warnings, the Government has stated there will not be any ruling on the tax rate until after the Gambling Bill becomes law.
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