Certified Online Casinos Guide

By Joe Myers

Level: Apr 12th 2007
Following the statement of UK Chancellor Gordon Brown regarding the latest budget, the word on the street was that a new online gaming tax, or Remote Gaming Duty, would be introduced and it would be online gambling-friendly.

According to The Gambling Act of 2005 which transfers control of gambling to local authorities it's necessary to introduce a new gaming tax quite rapidly. "The tax is likely to be set relatively low and be payable on the profits that offshore gaming companies make from their U.K. customers," wrote the UK's Independent."The Chancellor is being recommended to make the Budget as corporate friendly as possible."

The motivation behind corporate friendly taxation is that companies, such as 888 and Party, who had opened shops in places like the Isle of Man, Cyprus and Gibraltar would come back to the UK to take advantage of the new financial incentives. It is being heard that the tax would be somewhere between the two and 15 percent range. For sure, all the gaming businessmen hope for two percent. The majority expects that the UIGEA would possibly opposite this. The gambling industry was hoping for news of a generous Remote Gaming Duty. In reality everyone was in for a huge letdown.

In the end, the UK Budget was made public. It was not only offshore gaming company favoring legislation notably absent, but the rate at which companies would be taxed was the highest level possible of 15 percent. The online gambling industry expressed general disappointment. Online gaming company Rank Group Plc was among the companies against this measure.

"The amendments, which have been imposed without consulting with the industry, will have a negative effect on the profit of Rank's casinos." The new Remote Gaming Duty could also pull down the negotiations of Ladbrokes' which plans to acquire 888. And for sure 888 will have no reason to go back to UK. After all, there’s no tax where they are. They can afford it.

The Remote Duty once again mixed up the online gambling moves. This idea may have prompted Barney Frank to modify the UIGEA in the United States; accusations against Sportingbet were falling and the European Union started break down on betting monopolies.
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