Tote Forced to Back Down Over Offshore Betting Plans

Andrew Mair, Tax-news.com

28 February 2000

It emerged last week that the government-owned UK bookmaker the Tote has scrapped its plans to set up an internet betting service in Alderney, where it was hoped that Totalbet would take up a fourth electronic betting licence on the island.
While the Tote has refused to comment on the decision, there is little doubt that it was made as a result of pressure from the UK Treasury who were vehemently opposed to the plan. Although the Exchequer may have won this battle with the Tote, they could also be sentencing the Tote to a long and hard onshore servitude while the rest of the UK betting industry rushes offshore. Whether the Tote can maintain its market share in the face of tax-free competition from some of Britian's biggest bookmakers surely must now be questionable.

Until now UK Chancellor Gordon Brown has taken a hardline approach to UK bookies' pleadings to drop, or at least reduce, the betting levy so that they can remain both competitive and keep all their operations onshore. Having already moved their Internet and telephone betting operations offshore, the big players in the UK betting industry are now telling Gordon Brown that unless he changes his stance soon and offers them some relief, they may consider moving their companies offshore as well. Gordon Brown must now think carefully before delivering his budget next month - it could well be the definining moment for the future of the betting industry in Britain.

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