The British online gambling market, which is worth £1.7 billion, is being reviewed by the UK Treasury. The review process is going to be completed this month. Experts believe that a secondary licensing fee recommendation is likely to be proposed. It will be imposed on offshore gambling firms operating in the UK market.

A proposal was made last week in a discussion arranged by Matthew Hancock, Member of Parliament. Hancock proposed the inclusion of the definition of the process of how internet gambling is operated, in the Finance Bill that comes out annually. However, experts stated that since regulatory provisions are not included in the Finance Bill, Hancock's proposal cannot be considered.

Parliament Keen on Closing Tax Loopholes in UK's Online Gambling Sector

The members of Parliament unanimously decided that it is high time that the tax loopholes in UK's online gambling industry are worked on. Most operators in Britain's online gambling market are offshore companies. These firms have been taking advantage of the loopholes in the tax structure, according to Parliament members. Neither horse racing levies nor taxes are paid by the offshore companies.

The UK government has entrusted the job of settling the tax issues to the Department of Culture, Media and Sport and the UK Treasury. Hancock stated that a date has not yet been set by the Parliament for levying the taxes. However, as there is a unanimous agreement on the issue, the matter will be settled soon.

William Hill Casino to be Most Affected by the Licensing Fee

With the introduction of secondary licensing fees on offshore companies, the firm that is going to be affected the most is William Hill Casino. It offers a wide range of casino games like online roulette. William Hill has about 10% shares in the online gambling market of the United Kingdom. The firm employed a professional business consulting company called Deloittes for carrying out its review. The results of the review were published recently.

According to the review, the implementation of secondary taxation will result in many online gambling firms leaving the UK market. With reputed firms departing the market, a large number of players will opt for untaxed and unregulated sites. The report also mentioned that if 15% tax is imposed on offshore gambling sites, then two-third of the regulated firms are likely to leave. This may lead to the development of a black market in online gambling in the UK.

Bodog – the New Licensee in the UK

Although not a new brand in the industry, Bodog has recently obtained a license to operate in the UK internet gambling market. The firm has closed its operations in the US market. The new Marketing Officer of the company, Dee Dutta, will be marketing the brand in Europe. Among the marketing strategies planned by Dutta, there is a multi-million pound project of launching new online gaming services in Europe. Bodog has already received 3 UK online gambling licenses. None of these are offshore licenses and have been granted by the UK Gambling Commission.