A new regulation on online gambling has just come into effect in the UK. It mainly targets operators who are not established in the territory and who nevertheless offer its offers to British players. The laws have therefore changed, they will now have to have a license and must submit to the taxes set by the regulations.
Offshore Operators Will Have To Comply With The Law
These offshore operators must from now on pay taxes if they previously benefited from a low tax rate in the countries where they were hosted. Indeed, important operators took advantage of this loophole to settle in countries with low tax rates, this is also the case of Betfair and Ladbrokes. Parliament found that the previous law of 2005 was unfair especially for casinos that were located in the UK.
Competition is now more under control. Those who do not comply with this new law will face severe repression. The regulations provide, among other things, for the withdrawal of the license, and a maximum prison sentence of 7 years. They will also have to pay fines, the amount of which is not fixed in advance, but depends solely on the offense.
A New Source For State Coffers
This new law, which provides for a levy through a tax, will be set at 15% of gross gaming revenue collected by operators. Indeed, the Secretary of State for Culture, Media and Sports of the United Kingdom considers the situation unacceptable, that offshore operators pay no tax while offering their platforms to British players. This measure also aims to bring fairer justice both at the level of the sector, but also at the level of public finances. It is for these reasons that the government has decided to put this new regulation into effect.
It is estimated that UK online gambling players spend more than 2.5 billion euros per year or 2 billion pounds sterling. It is a very advantageous financial source for the State, in order to fill the coffers. The UK will therefore be able to collect more than £ 300 million each year, just through this new tax.
Offshore operators are therefore called upon to regularize their situation if they still want to offer their online gambling service to Internet users in Great Britain. It is also an opportunity to re-establish a fair tax which will allow the State to give more balance to public finances and also to better regulate online gambling.