Book Description

Around 80% of online gambling in the UK is conducted with operators which are not licensed here. In December 2012 the Government published a very short draft Gambling (Licensing and Advertising) Bill to require overseas gambling operators to obtain a Gambling Commission licence. The overseas-based remote gambling operators generally opposed the Bill, on the grounds it was unnecessary for consumer protection, might drive consumers to cheaper unlicensed operators and was principally intended to bring overseas operators within the UK's tax regime. Much of the UK-based gambling industry, sports bodies and organisations working to combat problem gambling supported the principle of the Bill. Almost all those who gave oral or written evidence to the Committee raised the issue that the enforcement regime would have to be rigorous in order to provide any of the benefits to consumers. The Committee supports the principle that gambling should be regulated on a ’point of consumption' basis. The Committee also notes the concerns raised about taxation of the online industry. The Government stated that the ability to bring all operators serving UK consumers within the tax net is a consequence, but not the prime motivation, of the draft legislation. The Committee notes in this regard that, in setting a tax rate for remote gambling, the Treasury should bear in mind that too high a rate would be liable to drive customers and companies into the unregulated, black market.