The Gambling Act, put into practice late in 2007, has been a courageous and intelligent move for the UK government. Three million English residents play in online casinos or bet on sports online frequently. The UK government understood it is better not to fight this widely popular practice and decided to play along with it.
But will the UK government receive any profits from this decision? Of course they will, especially given the new advertising niche created.
Now, online betting companies operate in the UK and take part in the variety of marketing industries but they still seem not to be so attached and they even don’t base their operations in UK proper. Actually, they seem to relocate their businesses elsewhere.
For example, Totesport Casino, which is a division of government-owned bookies Tote chose to operate from other countries included in the white list of the Gambling Act as they provide lower taxes than the 15% imposed by the UK.
Gambling - responsible gambling - is undoubtedly encouraged by the Act. But the online betting companies have no motivation to run from within UK. The 15% tax set by then Chancellor Gordon Brown does not compete with Gibraltar and the Channel Islands
These facts will not concern gamblers, quite the opposite, they will have the benefit of legitimate and regulated casinos and government protection.
The gamblers themselves will not be hurt by this; But the UK itself was either too gluttonous or not had the forethought when it set a high tax on online gambling companies.
