Detail On Taxation Of Gambling Sector Under New Rules Anxiously Awaited

by Robin Pilgrim, LawAndTax-News.com, London

26 January 2004

Following the publication of the UK's long-awaited Gambling Bill, the legal community is now anxiously awaiting details regarding the taxation of the sector, according to a Law Gazette report.

Speaking ahead of the February closure of the consultation period on the Bill, Julian Harris, head of licensing at Pinsents suggested that in the long term, it is likely to make good commercial sense for operators to locate their remote gambling operations in the United Kingdom.

However, he added that:

"The interest that will be created is going to be subject to one very important caveat: the tax regime is as yet unknown, and in order to be successful, the UK will have to compete with some very well operated and extremely tax advantageous jurisdictions, such as Alderney."

David Clifton, partner in the licensing department of London's Joelson Wilson & Co supported this assertion, observing that the government's lips are still "tightly sealed" with regard to the proposed tax structure.

However, he suggested that:

"The government's proposals for remote gambling are clearly designed to achieve the position of world leader in this field for the UK. They are certainly provoking intense interest around the world - as has been evident at conferences at which I spoke last year in Greece, Portugal, and Spain."

A comprehensive report detailing the online gambling situation in the key offshore jurisdictions is available in the Tax News Reports Shop at http://www.tax-news.com/reportshop/

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