Online Gaming Legislation in the UK may Include Secondary Fee for License Holders

The Treasury of the United Kingdom is due to conclude its review of the market for online gaming in Britain. The online gambling industry is valued at £1.7 billion. According to experts, the Treasury is likely to recommend the instatement of a secondary fee to hold a license to operate in Britain. This is applicable to companies who have their bases in offshore locations.

The New Online Gaming Proposal

Mathew Hancock, a member of the British parliament, arranged a series of discussions on the subject of uk real money online casinos . Hancock brought in a proposal to alter the legal definition of where exactly online gambling occurs – ranging from the server that the gaming operator utilizes to the location where it is played by customers, i.e. the hardware used by players.

The parliament used events that occurred in South Africa this year as an example. In one of them, the High court in North Gauteng in South Africa determined that online gambling actually occurs with the player’s hardware. This case involved a Swaziland online casino operator.

According to Hancock, the definition should be included in the Finance Bill, which is passed annually. However, this may not be reasonable, as the Bill doesn’t usually include any regulatory provisions.

Other Issues Discussed by the Parliament

All the parliament members agreed that the government should prioritize the closing of any loopholes in the tax law that gaming operators based offshore use to their advantage. The majority of the UK’s most popular online gaming operators is based in offshore locations and therefore can avoid paying levies on horse racing or taxes. The Department of Media, Sport and Culture and the National Treasury have been involved in finding a solution for this issue. Hancock stated that the minister had yet to confirm a date. However, with agreement from all sides concerning this issue, it is bound to happen eventually.

Predicted Effects of the Secondary Fee

According to research conducted on the subject, the secondary fee would lead to many reputed online gaming operators leaving the UK market. This would also force 40% of the players in the UK to start using sites that are unauthorized and illegal.

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