Thursday, November 02, 2006

The government today began pimping Britannia out to online gambling firms.
The Department for Culture Media and Sport is hosting a conference at Royal
Ascot aimed at bagging a lovely slice of pork as the industry realises its
days of Wild West tax dodging are behind it. Or, if you believe Tessa
Jowell, it's all about protecting the kids. The Secretary of State for
Culture, Media and Sport said: "We will welcome them here because we believe
that by allowing those who want to gamble to do so over the counter not
under the counter is the best way to protect children and vulnerable people
and keep out crime." Riiight. The UK has 70 sporting betting sites, but
currently no casino gaming operations are based here. Ministers are betting
the UK's regulatory regime will now attract them with the promise of full
legitimacy to calm twitchy shareholders. Until now, they've prefered tax
havens like Gibraltar and the Caribbean Islands. The industry is undergoing
a massive reorganisation after the US decided to close a legal loophole
which had allowed them to coin huge revenues from American punters playing
casino games. The Safe Port Act was amended to make money transfers to or
from online gambling outfits illegal. Stock exchange-listed firms quickly
saw their share price plummet. Prior to that, gambling execs were collared
by the Feds as they passed through US airports. Jowell recently sniped at
the US for the ban. She said it harks back to the depression-era ban on
booze.