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UK Government Establishes New Commission To Regulate Gambling Industry

by Robin Pilgrim, LawAndTax-News.com, London

12 April 2005

Following the entry into law on Thursday of the UK’s Gambling Bill, which will permit the operation of online casinos in the United Kingdom for the first time, the government announced the establishment of a new commission to monitor the industry.

In terms of liberalising measures contained in the legislation, which last November passed its second reading in the House of Commons by an unexpectedly tight 286 to 212 vote margin, the requirement for registration 24 hours prior to attendance at a casino will be abolished, the "permitted areas" rule governing where casinos can be built will be removed, and gambling establishments will be permitted to advertise in a limited way. Casinos above a certain size will also be permitted to offer unlimited jackpots.

However, the Gambling Bill also contains increased protections and restrictions, including tighter regulation of internet betting exchanges (in terms of obligations to verify the age of their customers), the introduction of criminal charges for those who invite, permit or cause a child to gamble, the introduction of new powers to allow local authorities to limit the number of casinos granted licences in their area, and the creation of a research trust funded by the industry into the causes and treatments of problem gambling.

In addition to the new Commission, a body of some 100 investigators will be put in place over the coming months in order to regulate the industry, with an emphasis on the supervision of the internet gambling sector.

Speaking to the UK media on Friday, spokesman for the Department of Culture, Media and Sport, Anthony Wright explained that:

"The commission will regulate all forms of gambling. It will have the power to carry out investigations, bring about prosecutions, levy fines and void bets they consider unfair. Online casino operators can operate out of the United Kingdom for the first time. We believe that is a pragmatic response to what is an increasingly popular activity."

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