UK Gambling Act postponed
Published on by Becky Mosley
The UK Gambling (Licensing and Advertising) Act 2014, was due to take immediate effect on 1st October but it has been delayed. It will now be pushed back a month to 1st November.
Why the delay?
This is due to a High Court challenge from the Gibraltar Betting and Gaming Association (GBGA). They are seeking to overturn the new law. They have said that this Act is “unlawful, because it is an illegitimate, disproportionate and discriminatory interference with the right to free movement of services and is irrational.”
Why these comments?
The GBGA is angry because the new act requires all remote operators, those of which including online poker rooms too, hold a UK gambling license if they wish to continue to serve players in the United Kingdom. A companion bill, set to take effect on 1st December, imposes a new 15% tax on gaming duty for all bets taken from UK customers.
Tax
The new finance bill requires that all profits made by gambling operators on bets placed over the internet by UK consumers will be subject to a 15% tax rate. Many gaming companies have argued that this duty will result in less competition in the gaming market ver the next few years, with many companies closing.
Apply
Some 150 gaming companies have applied for a temporary continual license, whilst some have set plans in motion to move customers to new UK platforms. Many companies are contacting their players to tell them of the changes that lay ahead.
Exit
Many, gaming sites have taken the decision to exit the UK gaming market altogether, as this license and move may prove too costly to implement.
Lord
The High Court has heard arguments from many companies on this. Lord Justice Green stated that a decision prior to 1st October is “unrealistic” according to EGR Magazine. This comment prompted the postponement by the UK’s Department of Culture, Media and Sport.