Second Thoughts On Secondary Taxing Of Online Operators

SECOND THOUGHTS ON SECONDARY TAXING OF ONLINE OPERATORS (Update)

Source: http://www.azonlinecasinos.com

Deloitte report may give pause for consideration

The UK Treasury is due to complete its review into the £1.7 billion British online gambling market next week, and will almost certainly recommend that a secondary licensing fee be imposed on offshore remote gaming companies wishing to access the UK market.

Clearly with this prospect on its radar, gambling group William Hill plc, which has a more than 10% share of the UK market, recently commissioned its own review, conducted by the respected professional business services provider Deloittes.

The results published this week are interesting; the study indicates that secondary taxation at the point of consumption could lead to 40% of punters using unauthorized (and untaxed) operators, as more reputable companies exit the scene.

Deloittes estimates that any additional tax burden will grow the black market, and that a 15% British tax could result in two-fifths of legitimate firms departing the UK market, thus forcing Brit players to use more dodgy internet operators taking their chances with the authorities.

A spokesman for William Hill told The Independent newspaper this week: "The question for the Government is, should it introduce policy which distorts markets?"

Related News Tags: Uk, William Hill