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!

By Samantha Williams

On recently reading the Gore Vidal fictionalization of the life, duel with Hamilton and trial for treason of the controversial 19th century VP of the USA, Aaron Burr; there is one comment the writer claims Burr makes about freedom of speech. He says something like – I can’t remember verbatim – “US citizens have the freedom to speak as long as they are saying what politicians say they may say”! It brings to mind the issues of the Unlawful Internet Gambling Enforcement Act and the fact that this law purportedly prevents US players from enjoying online casino games.

The law is ambiguous, convoluted and confusing to say the least; with tons of “grey” areas, and a Department of Justice which maintains that all online gambling activities, anywhere in the US are illegal. However, online poker has just been inadvertently legalised in Washington D.C. under the guise of one of the lottery operators of that city, while Washing State goes to war against payment processors.

Some online casino games are still available for US players’, in particular those operating from the Real Time Gaming software platform, and the big private online poker operators have grown to immense proportions post-promulgation of UIGEA. The belief is that these online casino games operators have not been indicted by the Department of Justice, simply because of the fact that this law will not hold much water in court.

Obviously there are many US citizens who would like to have the choice to play online casinos games legally and without restriction of freedom; they don’t play because of a natural fear of the law. On the flip side of the coin it would not be practical for the Dept. of Justice to indict every single US player who indulges in illegal online gambling. The trend seems to be that the Dept of Justice indicts companies who have admitted they have traded in online casino games after UIGEA was enacted; however, unless a firm or individual completely rolls-over, the only legal argument which seems to hold weight is when prosecutors target online payment processors. Apparently UIGEA was also passed into statue with no Senate debate and this also raises questions. This in a nutshell paints a quick portrait of how odd the law actually is.

One of the brilliant things about playing at casinos online is the fact that the handicapped, the elderly and other house-bound people, the ill and the isolated; have access to some light entertainment. Online bingo players for example, love these games and the social interaction they receive at their favorite sites.

Despite the fact that many organizations and lawmakers have kicked up a fuss regarding UIGEA and want it booted out; this call goes on being ignored. In the meantime – are people who are in the minority, who want to play legal online casino games; having their rights or freedoms to speak, to associate and do what they like with their own time and money, restricted?