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May 2009

Offshore Gaming Companies Threatened by UK Legislation

New gambling laws will help level the playing field

Changes to the current gambling legislation may mean that UK bookies finally get their way and share the burden of gambling research and support with offshore gambling companies.

Until now, a number of offshore gambling companies that were registered in jurisdictions such as Malta and Gibraltar, enjoyed 'white label status', meaning that they could advertise their products in the United Kingdom.

These same groups, however, pay only a fraction of what their English based counterparts are coughing up each month in terms of levies to the government that go towards research and gambling support.

UK Members of Parliament have been complaining for some time now that the system is not fair, and these sentiments have been echoed by UK gambling groups.

The UK Minister for Sport, Gerry Sutcliffe announced this week that the government would be creating "a more level playing field between British businesses and their overseas counterparts".

Sutcliffe said that he would be demanding from foreign companies, including Party Gaming and 888 Holdings, to make significant contributions to various funds that will help against problem gambling.

There are many problems facing a review of laws such as these, including the question of how the UK government can determine the amount of money that needs to be paid by these offshore groups. It will be difficult, for example, to calculate what portion of a company's business comes from UK sources, and what doesn't.





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