White list online gambling freeze in UK as DCMS reviews e-gaming regulations

The government in the United Kingdom has frozen the online gambling white list while their Department of Culture, Media and Sport (DCMS) once again review the Gambling Act for the second time. The DCMS has made up its mind to suspend any new additions to the list for the near future after it came to light that bookmakers have been avoiding making tax contributions by basing their businesses off-shore.

Popular bookie, William Hill is the latest to be thought to be considering a move to Gibraltar to avoid paying the 15 per cent gaming tax imposed by the UK government. During the freeze out period, this hefty tax may be reviewed to encourage companies to stay in the UK which will help to hold onto people’s jobs within the industry. The list was a requirement for any online gambling company to trade in the UK since 2007 and many companies have improved themselves so they can make it onto the white list, but their aspirations have indefinitely been put on hold by the freeze imposed by the government.

The UK government has confirmed that it will without doubt not be granting White List status to any new applicants as it undertakes a review of the legislation around the UK Gambling Act. The freeze on jurisdictions being granted White List status, which allows e-gaming operators based in those jurisdictions to advertise in the UK, comes as leading UK-based bookmakers earlier this year called on the government to create a level playing field so they could compete with operators based in offshore jurisdictions.

The government will look at the 15 per cent gross profits tax levels and costs such as the horse racing levy and VAT the UK-based operators are subject to and assess how offshore operators can be made to contribute to the levy and issues such as the fight against problem gambling. The DCMS, which is carrying out the review, has confirmed the White List freeze but would not comment on any other issue. The review findings will be submitted to the DCMS by the end of 2009. However, it is reported that the UK government has also found that EU Member States have not followed its lead and are not allowing EU-licensed operators to advertise and take bets in their territories. The review will address some of those wider European regulatory issues.

However, this does not mean the UK will go down the same route as countries such as France and Italy, which have effectively ‘ring-fenced’ their markets to EU-licensed operators by only allowing operators licensed on the mainland to advertise and take bets from their citizens.

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This entry was posted on Sunday, August 2nd, 2009 at 2:21 am and is filed under Casino News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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