by Anton Johan
Shares at online operators such as Ladbrokes and William Hill fell this week
following the release of a report by the Department of Culture, Media and Sport.
The report related to a number of factors influencing the current gambling
landscape in the United Kingdom and made several recommendations.
Most significant were the recommendations dealing with new rules for
offshore operators who are interested in the UK market.
It is highly likely that those offshore operators who are currently licensed
outside the UK - even those in 'white list' jurisdictions - will need to apply
for a license from the UK Gambling Commission if they want to provide services
or advertise in the UK.
These regulations will especially affect groups such as Ladbrokes and William
Hill who relocated their online operations to Gibraltar last year to escape the
UK's tough tax regime.
Other changes include the enforcement of new regulations that would demand
that all offshore operators have active systems through their applications that
would share information about suspicious betting patterns with governing
authorities in the UK.
In addition, offshore operators may need to contribute to the Horserace
Betting Levy in the UK, just as their UK-based counterparts have been doing.
"Online gambling has changed significantly in recent years with many European
countries taking new approaches to regulation," said Gerry Sutcliffe, UK Sports
Minister. "It would be wrong of us to stand still where many things are changing
around us - especially where the protection of British consumers is at stake."
"The new system will also ensure that all businesses offering online gambling
to our consumers adhere to our rules - not someone else's," he added. "The
Gambling Act is already one of the best regulatory frameworks in the world and
these changes will ensure that it sets the standard for all online gambling
companies that target British consumers."
