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UK Select Committee Approves Online Gambling Bill

Lawmakers in the United Kingdom are currently considering a new bill that would change the tax code for online gambling. The Select Committee from the Department of Culture Media and Sports approved the bill earlier this week. The bill has been forwarded to the legislature and a vote is expected later this month. However, some details of the bill may be changed in the coming months.

The new bill would impose a 15% Point of Consumption tax on all forms of online gambling. The current law only imposes a tax on gaming providers that are based in the United Kingdom. The new tax code would force all gaming companies to pay the tax when they serve UK citizens, regardless of where their company is based. This change would discourage gaming providers from moving their operations overseas to avoid the tax. The online gambling industry has raised concerns with the rate that is going to be imposed.

Many experts have cautioned that the current tax may be too high to create a sustainable online gambling industry. The committee published another report last summer which claimed that the 15% POC tax could force nearly half of online gaming providers to leave the market.

The committee is also concerned that the tax may discourage players from using the regulated gaming sites and turn to underground sites instead. They have suggested that the Treasury review the tax and consider reducing it.

Although the POC tax has created some concerns with the DCMS, the general public is pleased that the government is finally making progress on reforming online gambling and allowing

 

This blog entry was posted on Monday, May 20th, 2013 at 6:01 pm and is filed under Casino News.

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