U.K Chancellor Looks To Lure British Offshore Gambling Operators Back Home

The debate over offshore online gambling operators in the U.K. has always been fierce. There are many legal land operators in the U.K. who feel that they are at an unfair advantage to their offshore competitors who do not pay taxes in the U.K.On the other hand many U.K. online gambling operators have moved their operations offshore to place like Malta and the Isle of Man as a result of what they term excessive tax rates which make their gambling enterprises uncompetitive.

Well a new development is set to change the playing field for the offshore operators. According to reports the Chancellor George Osborne is set to cut the tax rate for online gambling operators as part of an incentive to lure them back to Britain. This move is seen as controversial as opponents of online gambling are quick to point out that vulnerable groups like children are more likely to be exposed to internet gambling which is available all hours of the day and 365 days a year.

Most major British gambling companies took the decision to operate offshore due to the then 15% tax rate imposed by Labour over seven years ago. The new proposed plan of action by the government is aimed at recovering the billions lost in these last seven years. The figure being thrown around is a tax cut of over one third which will hopefully lure British gambling companies back to the U.K.

Supporters of the proposes tax cuts point out the simple fact that people are gambling irrespective of where the operators works from. Billions of pounds that are currently being lost to offshore operators could be ploughed back into the struggling U.K. economy should the incentives work.

Currently over eighteen of the 20 major betting companies who are responsible for running over 2,500 online gaming sites choose tax havens like Gibraltar to operate. The proposed tax cut of one third would mean a reduction from 15% to 10%. The British government is in dire need to re-energize the economy and the tactic of lowering taxes is seeing as a viable option which would attract offshore companies to spend their money within the U.K.

Another argument by government officials like Minister for Sport and Tourism, High Robertson is the well being and safety of the online British gambler. He was quoted as saying,” These proposals will ensure that British consumers enjoy consistent standards of protection, regardless of where a gambling business is based.”
It is hard to see how the British government can continue to sit on the sideline and see billions of gambling revenues pass them by. The solution of a mutual compromise on both sides would see a more regulated and beneficial gambling policy which would ultimately be to the benefit of all parties concerned.

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