Offshore Gambling Operators May Soon Need License To Operate In UK

The UK is one of the biggest online gambling markets in the world, but this past year, several of the biggest online gambling operators moved their businesses offshore. That is prompting a change to laws in the UK.

The government is considering making it mandatory for offshore companies to purchase a local gaming license. If they do not comply, they would be forbidden from accepting customers from within the UK.

William Hill and Ladbrokes both moved their online gaming operations to Gibraltar this past year. The companies are paying a lower tax rate, and are still keeping their customers in the UK. It is a situation that the government wants to stop.

The spin from the government in the UK is that their main objective is to help regulate the industry to stop the sports betting scandals that have risen up in recent years, but clearly the government is not happy with the loss of revenue that occurred when William Hill and Ladbrokes left.

The UK has some of the more lenient online gambling laws in the world. many of the companies that left the US market after the Unlawful Internet Gambling Enforcement Act was passed have focused their efforts on the UK.

The US is the biggest online gaming market, but the UK is not far behind. Operators are hoping that the new administration in the US overturns the UIGEA, and there is currently proposed legislation from Representative Barney Frank to do so.

December 23, 2009
Posted By Tom Jones
Staff Editor, CasinoGamblingWeb.com
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