Gambling News

Apparently so, according to this report in the Daily Telegraph:

Gordon Brown will announce plans in next month’s Budget to encourage the beleaguered online gambling industry to be regulated and licensed by the UK Government.

The Treasury has long had its eye on the potential tax revenues that are generated by the likes of PartyPoker, 888, Ladbrokes and other gaming companies that are based in Gibraltar and other offshore centres.

From September the companies will be allowed for the first time to relocate to the UK and obtain a licence under the Gambling Act. However, all companies have said they would never relocate to the UK if they had to pay a tax on gross wins as high street casinos do. Bricks-and-mortor casinos pay tax of up to 40pc depending on their size.

In a surprise move, the Chancellor will use the Budget to announce that in return for a small amount of tax - possibly as low as 2pc or 3pc - companies can obtain a UK licence and still remain based overseas. The new tax will be called Remote Gaming Duty. This compromise would allow gambling companies to avoid British VAT.

If the report is true - and there’s no reason why it shouldn’t be - this could be very significant, and not just because it means a lot of tax for the UK Treasury. It could also mean a reverse British Invasion, with the big international betting sites spending shedloads of cash to target UK gamblers.