| | |  | Last Updated: Wednesday, February 27, 2008 |  | | | UK's Plan To Tax Online Gambling Sites Not Likely To Happen
- Wednesday, 15 Nov 2006
UK's government plans to tax online gambling companies in their territory is facing some unexpected difficulties, and right now it seems it won't be occuring, at least not in the near future. Treasure minister John Healey confirmed this fact while talking to tourism industry leaders last week. The treasury is expected to come up with a tax formula next year, when the Gambling Act comes into being, but most experts assume that the majority of the online gambling companies won't be moving to the UK, due to the tough gambling laws.
Right now those online gambling companies are making huge sums just by the fact that they don't have to pay corporation tax and VAT, as they reside in jurisdictions like Malta and Gibraltar. It seems that only a very attractive proposal will be able to bring them to the UK, and by taking into account all the those facts, it may be a little longer until the online gambling industry consolidates itself in the UK.
Since the US legislation of the anti-online casino law, also known as the Unlawful Internet Gambling Enforcement Act, the share value of most of the online gambling companies have dropped significantly. That's one of the reasons for which most of those companies aren't too reluctant to move into the UK and have to pay the proposed taxes and further cut their revenues. At least until that situation will change, the vast majority of online gambling companies will continue to operate from the safety of Malta and Gibraltar. | |
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