When the British government introduced a 15% tax for online gambling, some of the major operators shifted out of Britain. Now it appears like the authorities are considering a 5% tax cut that should translate into over £100 million for the gambling operators still present in the United Kingdom.
Both players and the casinos themselves are intrigued by this sudden promise, and some suspect that the government has a hidden agenda. It is hard to believe that during times of scarcity, the government can simply make presents worth of millions, without aiming for some profits of its own. What is certain is that if the taxes fall to 10%, some of the operators will return to Britain instead of conducting business from tax friendly offshores.
The government officials say that the main reason for making these concessions is that by bringing the gambling operators back, they will be easier to monitor. They say that the goal is to protect players against various scandals such as match fixing and under age gambling, which plague this industry. Some think that the government will go a step further and try to offset its sudden losses by adding another mandatory license for gambling operators.
The idea of introducing the secondary license is not new, but in this climate it appears to be a very likely side effect of the tax cuts. While the operators are already bickering about the prospect of paying more money for licensing purposes, fair tax campaigners also contest the plan. They claim that there is no reason for decreasing the taxes paid by gambling operators, when other European countries impose higher taxes and have more restrictive measures.