Remote Gambling to be regulated 'at point of consumption, not point of supply'

UK (DCMS) All gambling operators selling into the British market - whether based in the UK or abroad - will have to obtain a licence from the Gambling Commission, under plans announced today by John Penrose, Minister responsible for gambling policy and regulation. It’s estimated the internet gambling market in Europe will be worth 12.3 billion Euros by 2012 and the proposals will, for the first time, mean that remote gambling is regulated at the point of consumption not the point of supply, ensuring British consumers will always be protected, no matter which online gambling site they visit. John Penrose said:>>>

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“The current system for regulating remote gambling doesn’t work.  Overseas operators get an unfair advantage over UK based companies, and British consumers who gamble online may have little or no protection depending on where the operator they deal with happens to be based. So our new proposals are an important step to help address concerns about problem gambling and to plug a regulatory gap, ensuring a much more consistent and higher level of protection for those people in the UK who gamble online.

“We will create a level playing field, so all overseas operators will be subject to the same standards and requirements as those based in Britain, as well as being required to inform the Gambling Commission about suspicious betting patterns to help fight illegal activity and corruption in betting.”

At the moment any gambling operator who wants to offer their services in Britain must be licensed or regulated in either an EEA state or one of the states approved by DCMS on the ‘White List.’ The plans announced today will replace this system, increasing protection for British consumers and establishing fairer competition for British-based online operators.

It is as yet unclear how this new law could affect Gibraltar's gaming industr, but yesterday The Remote Gambling Association said it would work with the UK Government on the forthcoming changes.

Clive Hawkswood, the RGA’s Chief Executive said: ‘Now that the Government has confirmed its intentions, we intend to play a constructive part in the process to ensure that the new regulatory and tax regime will provide an environment where Government objectives can be achieved; where the industry can succeed commercially in the global online gambling market; and where the interests of consumers continue to be properly safeguarded.’

Under the Gambling Act 2005, remote gambling operators based in EEA jurisdictions and those licensed in jurisdictions on the Government’s ‘White List’, which have already been identified as having acceptable regulatory standards, are permitted to advertise in Britain.

Companies with a significant interest in the British market are located in such jurisdictions and the new proposals require them to also hold a British licence in addition to the other licences under which they already operate.

Mr Hawkswood added, ‘The main players in the UK online gambling market are predominantly based offshore, but they already adhere to high regulatory standards which are comparable to those in Britain.”

“Regulation by the Gambling Commission therefore holds no fears for our members, but a significantly higher tax burden that could lead to a reduction in value and choice for consumers certainly does.”

“It is therefore clearly crucial that any new regulatory regime is complemented by a fair and sustainable fiscal regime. We look forward to working with DCMS, HM Treasury, and the Gambling Commission to ensure that all of these issues can be successfully addressed.”