U.K. to lure online casinos
The finance minister of the
United Kingdom, Gordon Brown, is proposing next month a plan to
allure the offshore online casinos with the benefit of getting
license in U.K. and pay tax between 2%-3% on their revenue. It
would be called the "Remote Gambling Duty" and will allow the
online casinos to have legal presence in the U.K. without having
to pay the value added tax (VAT) which the offline companies do.
The current Internet gambling laws, which should be in effect
this September, do require the online casinos to pay the high
VAT, and this proposed amendment would take care of this tax,
which has become an issue for the offshore Internet casinos.
Ladbrokes, one of the biggest English bookmakers, both online
and offline, has expressed willingness to obtain the license
should the amendment pass and the tax is less than 3%. It is
expected that a small tax would encourage more online casinos
and other gambling websites to apply for a license and would
make the industry much more transparent and under supervision,
which would greatly benefit the customer.