Casinos.co.uk: Casino News Archive
Friday 23rd February 2007
Could there be winners all round with Brown's budget proposal?
From September, online gambling companies will be able to obtain UK licences under the Gambling Act, The Daily Telegraph reported today.
Gordon Brown will announce in the March 21st budget that for a nominal amount of tax, companies can remain in their offshore locations but still obtain UK licences and be regulated by British law.
The new tax, Remote Gaming Duty, could be as low as 2pc or 3pc. The deal would allow online companies to avoid the VAT that high street casinos presently pay, which can reach 40pc depending on size.
Critically, the precise rate is yet to be set, but John O'Reilly, head of online gambling at Ladbrokes, believes the move is "a breakthrough", adding that Ladbrokes would probably apply for a licence assuming the rate was less than 3pc.
Clive Hawkswood, chief executive of the Remote Gambling Authority, the online gaming trade body, justified the low rate of tax. He explained: "These companies have grown up in zero tax jurisdictions. They operate on very thin profit margins. A 15pc gambling duty would wipe out half the industry overnight."
Source:Direct News
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