Britain is now looking to attract online gaming back to their shores after many companies choose to have their headquarters based in offshore locations instead, in order to avoid massive 15% tax that was put in place back in 2005.
Ever since 2005,many of Britain’s largest online gaming firms have decided to ship their headquarters over into offshore locations in order to avoid the excessively high taxes that the government placed on such operations.
They are now going to cut that tax to a much more affordable 10% in a bid to try and lure some of the companies back to their homeland. The online gaming companies were never happy with the large tax that was to be implemented, especially as high street bookmakers only had to cough up 10%.
The biggest British online internet gambling companies are all located and headquartered in offshore countries, in an obvious attempt to evade that 15% tax. In reality, this is all to be expected by any savvy business owner, they are going to go where they can make the most money.
In fact, it is estimated that the treasury has lost around £2.1 billion since they put those original taxes in place, with almost twenty of Britain’s largest companies opting to move their headquarters to locations such as Gibraltar and the Isle Of Man. That total equates to about 2,500 gambling sites, with the treasury now predicting that if these companies were to move back they would save £100 a year in taxes.
This proposal has not gone without its opponents though, as many will point to the fact that many EU countries actually require at least 20% in taxes. This is on top of other countries such as Germany and of course the much publicized America having extremely severe gambling restrictions.
On top of the reduction in taxes this new bill is aimed at providing the gambling commission a much tighter control over other areas such as match fixing and scandals that may occur from betting.
We feel that whilst this will be ultimately good for the future of online poker in the UK, it seems that it might have come a little too late. With most of the world’s largest online gambling companies deciding to move their operations to an offshore location, we feel that it may take a little bit more to attract them back considering the costs and logistics that would be involved in any particular move.