The new UK Gambling (Licence and Advertising) Bill will go further towards implementation in the House of Lords. On Tuesday the House of Lords started the committee stage of the bill in which they will examine the bill in detail, in a line-by-line process. Nevertheless, the general opinion is that the Bill will be implemented this year as scheduled.
The key element in the bill that is currently being scrutinised is the point of consumption tax which all online gambling companies operating in the UK must pay, regardless of where they are based. If approved, all online gaming companies that serve the UK market, regardless of where they are based, will be required to hold a UK Gambling Commission licence. Currently only UK-based gambling firms are required to hold a licence. But if the Bill is passed, offshore operators will also be required to pay a point of consumption tax, which presently stands at 15%.
The Bill was first introduced to the House of Commons on May 9, 2013.
Gambling operators in Gibraltar reacted with anger last October when the Bill was first announced, pointing out that a tax hike would force many licensed companies to operate in the grey market.