UK and US Online Gambling Progress

August 25th, 2011

The United Kingdom (UK) and United States (US) have been at the forefront of the online gambling news lately. First, the UK Government is preparing to overhaul the online gambling laws to collect taxes from offshore operators. Second, numerous US states are attempting to create a regulated online gambling system. There have recently been breakthroughs with regards to both situations.

Proposed Tax Changes for Offshore Operators

In the UK, a representative from William Hill online casino is speaking out against the British government for the proposed tax changes. These changes include offshore gambling operators who desire access to the UK market would be required to acquire a secondary license and thus pay taxes to the country. Online casino representatives describe this move as being unfair. William Hill casino moved to Gibraltar two years ago to escape high UK taxes.

Since that time, Gibraltar has developed into a hub for online gambling activity across Europe; hosting many online operators at low taxation. William Hill has blatantly said it will not be returning to the UK. William Hill representatives also stated that to level the field through the taxation of offshore casino operators, the government must also match the taxation rates from other jurisdictions.

US Delay of the Legalization of Online Gambling

Across the pond in the US, the approach to the Washington, DC council to legalize online gambling will further be delayed. In the most recent hearing, the council had decided that citizens had not been provided a sufficient opportunity to consider the law that introduces online gambling. As a result, the council advised the DC Lottery to put all implementation plans on hold and initiate a public consultation procedure that will increase public awareness.

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As a result, DC Lottery representatives implemented a plan for additional presentation across the city. Unfortunately, residents of DC do not want the presentations to be held during the summer months which will further delay the process. Therefore, the agreed upon time for the presentations is mid-September through October.

Investment in the Cause

Furthermore, during the second quarter of 2011, the American Gaming Association (AGA) spent $641,621 lobbying the government with regards to online gambling. This was slightly more than the amount spent in the first quarter of 2011 and significantly more than that spent in the second quarter of 2010.

There is plenty of activity online gambling activity occurring across the globe at any moment. It appears as if the UK government is getting closer to passing a new taxation law while the US state governments are gearing up to create online gambling systems in their areas.

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