Earlier this year we discussed the UK governments “unhappiness” at watching hundreds of millions of pounds going to offshore remote gambling operators. Way back then it was proposed that the playing field be leveled and all profits from UK gamblers be taxed irrespective of where the operator is based. Well it seems this is going to happen sooner rather than later as the UK government announced some far-reaching new regulations that are to come into effect from as soon as December 2014.
In terms of the new regulations The UK Government will impose a 155 tax on all transactions from UK online gamblers. With over £2 billion at stake from online remote online gambling operators in the UK the stakes are high and bookmakers like William Hill and others who have had it good till now will lose up to £300 million due to the new tax regime.
There are also heavy punishments waiting for those operators not complying which include their licenses being revoked, seven years in jail and hefty fines. The Press statement released by Economic Secretary to the Treasury Sajid Javid made it clear that the government is not playing around,” It is unacceptable that gambling companies can avoid UK taxes by moving offshore, and the government is taking decisive action to ensure this can no longer happen. Some remote gambling operators avoid paying UK taxes by basing themselves offshore. The new rules will create a level playing field across the industry. Failure to comply with them could result in prison sentences of up to seven years, unlimited fines, or the loss of a remote gambling operator’s license to operate.”
While there are already talks of challenging the proposed new Bill in the courts, the experts believe that at best the offshore gambling operators will not succeed in getting the Bill canceled and at best would succeed in perhaps softening the numbers talked about.