UK Wrestling with Gambling Laws
Tuesday, December 29th, 2009One of the biggest markets for online gambling is in the UK. It’s no secret that gambling is taking over many country’s negotiations. The global recession did a lot to bring economies all over the world to their knees. Deficits are huge and budgets have huge shortfalls. Gambling is one of the few markets that has not suffered as a result of the economic downturn. In fact, gambling has shown a good growth performance over the past few months. In particular online gambling has shown a huge growth rate. Legislators from all over the world know that there are billions of dollars available in the market of gaming and are trying hard to capitalize on it’s lucrative nature.
In the UK the same changes are happening, but somewhat in reverse. Due to changes in legislation in the UK, several large online gambling operators left the country, opting for offshore business centers. The UK is now looking for changes that will keep operators in the country. The government is considering making the move to instill a mandatory gaming license for offshore companies. They would have to pay for their licensing and if they don’t, they would be banned from accepting or soliticing companies from within the UK borders. Two of the companies that moved out of the country were William Hill and Ladbrokes– both are giants in the world of online gambling. They both moved their operations to Gibraltar, a location where gambling is welcomed and taxes are low.
The UK government is noting a need to help regulate the industry to stop the sports betting scandals that have risen in recent months. In addition, however, the government is hurting from losing the huge revenues that William Hill and Ladbrokes brought in. Together there is a loss of millions of dollars that could have been kept in the UK economy if laws were different. Despite the move, the UK has lenient gambling laws for online operators. The economy has been built up due to changes in the US law. In particular the UIGEA of 2006 drove companies out of the US and into the UK market.

