By Samantha Williams

In 2006, the United States Government passed a law we now call UIGEA. This is the Unlawful Internet Gambling Act, and short of actually making online gambling in this country clearly illegal, it totally confuses matters. The Act is tagged onto an obscure Wire Act – dated 1961? – which is relevant to the transfer of funds over the airwaves or something. It essentially makes things really difficult regarding credit card payments and also e-wallet transactions.

Financial institutions are penalized severely for allowing online gambling transactions to take place. Then a swoop on the four major US online poker sites took place on the 15th April 2011, this was the ultimate death knell for most online gambling in the US. There are very few site who wish to go to the trouble to offer games to US players any longer, and even BODOG has pulled out of the US industry as of the end of this year.

Any US online casinos still left operating are taking a very big chance – who knows when they might not also have their domains seized. It is drastically unfair, against World free trade principles, and completely paradoxical that the United States of America considers itself to be a government whose people are living in “the land of the free”. To all intents and purposes online gambling laws in this country are to protect people from themselves, or to be completely brutal – from their own stupidity. Honestly it is all just about money, and about this government wanting ‘total’ control.

Back in the 1930′s Ayn Rand said “We are fast approaching the stage of the ultimate inversion: the stage where the government is free to do anything it pleases, while the citizens may act only by permission; which is the stage of the darkest periods of human history, the stage of rule by brute force”, and UIGEA is only one example of this type of control.

While the rest of the civilized world has realized online gambling is here to stay, the US Government is being manipulated by money, or should I say – their lack of ability to manipulate this industry’s money. But let me get off my soap box.

Suffice it to say that US online casinos don’t have it good as far as free trade is concerned. Online payment processing companies are struggling to find more loop-holes and the DoJ is closing in on all big operators. Any US player wanting to gamble online is then also now taking a risk. When a mainstream industry is made illegal in this way, there are always bootleggers out there trying to make a fast buck. This means no regulation, and no recourse for any US online gamer who is willing to take even more of a risk. Sadly even online casino listings which promote US sites, are – in good conscience – dropping long-time clients as fast as hot-cakes. Essentially folks, if you gamble online in the US, you are taking a really big chance.

By Samantha Williams

Top online casinos in the UK have had an incredibly easy life up till now, and although the free ride is not over yet, things could be changing soon. These ‘things’ could be a taxing problem! It is not easy to understand online gambling licensing jurisdictions for the UK, but I am going to try and simplify it. Online, real money gaming in this country is legal, but the rate of tax for gambling operations is prohibitively high. So, years ago in 1994 when the UK National Lottery was established; this paved the way for all kinds of legal gambling activities, but also for the British Government to get their hands on their share of the loot, through the vehicle of tax, which is quite normal .

Then, came online gambling, and operators in this industry fast learned that the UK Gambling Commission, although a fantastic licensing jurisdiction – was also prohibitively expensive in terms of tax – 15% prohibitive in fact! The UK being a member of the EU, meant that top online casinos could license their wares offshore, in tax shelters such as Gibraltar, Malta, Alderney, Isle of Man, and others. But, still advertise to sell their wares in the UK, while paying offshore tax rates of something stupid like 1%.

EU offshore licensing jurisdictions enjoyed the freedom of almost instant White Listing, which also allows the freedoms of free trade principles. Any operators licensed in non-European licensing jurisdictions such as Kahnawake, Antigua, Curacao and so on, do not enjoy White Listing status. Many top casinos companies have even moved their UK business to Gibraltar; for example, William Hill, Betfair, Littlewoods and so on. None of this big UK business is licensed in their own country for online gambling operations!

Realizing that they should get their share of this massive potential for excise, the British Government is waking up to the fact that top online casinos, even if they are licensed offshore, should have a secondary license to ply their wares to a UK facing audience – which is only fair as far as I am concerned. You want to do business in a country; you should have to pay the price, especially if that business is generating billions of pounds in revenue! There are 36 million adults in the UK, who have had some sort of flutter this year!

After years of getting away with paying no tax, and pretty much no dues at all for tapping into the gold-mine of UK gambling business, non-domiciled operators are going to find things changing for them, and not before time. If land casinos and other gambling businesses in the UK, have to pay 15% tax; the principle is that if offshore ops also have to pay licensing fees and tax, then, all operators can get away with paying less.

How would the UK govern this? Well…this is another taxing problem, but Italy and France are doing it, and we have the technology. It’s a simple matter of making it illegal for those offshore operators to take wagers, the US DoJ has just done this with the biggest online poker sites in the US!

Needless to say the UK is not painting this as another tax grab – although I think they should be honest. They are supposedly changing regulations as a way in which to improve customer protection…but let’s call a Spade a Spade!