Online regulations
The regulation of online betting and gaming businesses continued to develop across the world and we expect further shifts to come in the next few years, both in Europe and in the rest of the world. We believe that a restrictive approach to opening up gambling markets, such as that seen in France, with high levels of turnover tax, is not a blueprint for the future and that a proportionately regulated and taxed industry which can grow will be the foundation for a true competitive market and sustainable tax yields.
UK regulation of offshore operators
During 2010, DCMS consulted on a proposal that online operators who are outside the UK but who advertise to or target UK consumers should be licensed by the British Gambling Commission. In our response to this consultation, William Hill’s position was that such regulation is neither proportionate nor necessary and would impose dual regulation on large operators, which offends better regulation principles. As the majority of offshore operators are large corporations with good corporate governance procedures, there is little or no public protection risk, as DCMS acknowledged in its review. However, there is a clear intention on the part of DCMS to regulate offshore operators which will be achieved by means of a limited online gambling bill. DCMS are currently bidding for a legislative slot and it is likely that timescales will be announced in the Queen's speech in May this year the earliest. There will then need to be a Gambling Commission consultation process. Implementation in 2013 is the most likely outcome.
In connection to the DCMS announcement about online regulation, HM Treasury has confirmed its intention in this year's Budget to apply a 'point of consumption' (POC) tax to the remote gambling industry. It indicated that it currently expects to apply 15% gross profits tax as from December 2014. However, the exact timing and rate will be reviewed and there will be further consultations on implementation.
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