UK government moots new egaming laws

THE UK DEPARTMENT for Culture, Media and Sport has released a statement regarding the UK egaming industry and the extension of regulation to safeguard UK consumers and generate income for the horse racing industry.

Offshore white-list regulated companies do not presently pay UK levy charges on online horse racing bets or tax on wagers, and are allowed to advertise freely to UK consumers, which led to decisions by William Hill and Ladbrokes to move their online sports betting operations to white-listed Gibraltar last year.

However sports minister Gerry Sutcliffe today announced proposals to bring in new licence requirements for overseas-based online gambling firms that want UK-based customers.

Sutcliffe said: “Online gambling has changed significantly in recent years with many European countries taking new approaches to regulation. It would be wrong of us to stand still where things are changing around us – especially where the protection of British consumers may be at stake.

“The new system outlined today will also ensure that all businesses offering online gambling to our consumers adhere to our rules – not someone else’s. The Gambling Act is already one of the best regulatory frameworks in the world and these changes will ensure that it sets the standard for all online gambling companies that target British consumers.”

The plans, which will be subject to consultation, would mean that online operators currently licensed outside Britain will have to apply for a licence from the Gambling Commission if they want to advertise or provide their gambling services to British consumers.

All egaming firms active in the UK market will also have to share information about suspicious betting patterns with the UK’s sports governing bodies and with the Gambling Commission.

They will also have to comply with British licence requirements including the protection of children and vulnerable people, and will have to demonstrate how they will contribute to the research, education and treatment of problem gambling.

The government is considering what the plans mean for operators based in countries outside Europe, but said it intends to maintain the ‘white list’ systems of approved offshore jurisdictions. It is also investigating ways to secure contributions from overseas operators to the Horserace Betting Levy.

Ladbrokes spokesman Ciaran O’Brien said: “Online betting and gaming is a global industry and Ladbrokes has to locate its .com business where it can complete most effectively. Ladbrokes continues to exceed UK regulatory standards so we welcome this consultation, which seeks to ensure that UK consumers are appropriately protected from those unregulated operators who fail to meet appropriate standards.”

James Hollins, leisure analyst at Brokerage Daniel Stewart said: “We seriously doubt whether this can be put in place before the next UK General Election. However, our belief is that the next Government, particularly if it is Conservative, will certainly pursue a tighter control on both online gambling and its relevant taxation.”

For more on this topic, see today’s blog post by Daniel Stewart.