Tax Breaks Could Attract Online Casinos To The UK

A change of legislation is needed if the government wants to attract online gaming companies to the UK, it has been suggested.

The UK government needs to reform its tax regime if it wants remote gambling companies to base their operations in the country, according to an industry expert.

Statistics compiled by the Gambling Commission show that more than eight per cent of the UK population take part in some form of remote betting.

However, few of the companies benefiting from their custom are based on the UK mainland, instead preferring to operate from Gibraltar, the Isle of Man or even the Kahnawake Mohawk Territory in Canada.

Jake Pollard, editor of eGaming Review Magazine, suggested the reason for this is the 15 per cent profits tax levied on UK-based online gambling operations.

"Businesses go offshore because much better tax options are available. If the UK offered much better tax breaks competitive with offshore jurisdiction then I'm sure that a lot of operators would come back," he explained.

However, Mr Pollard added that there is no indication that the government is prepared to make changes to help persuade gaming companies to base their operations in the UK.