Friday, August 14, 2009
Online Casinos Leaving UK In preparation for United Sates Invasion
1:41 AM | 
Posted by
coolvision
Some of the UK's largest online casino owners moved their offices to Gibraltar, for the purpose of tax reduction and also possibly looking for advantages in the potential United Sates casino gambling market.
The decision by online casino owners William Hill and Ladbrokes to move their offices from the UK to Gibraltar may be a preparation for the opening of the USA market. Gambling companies are resigned to a high level of taxation when and if USA laws are changed to liscence and regulate online gambling, and removal the high taxation in the UK could be a move toward USA profits.
The two companies had complained to the UK Gambling Commission about the uneven treatment given offshore casinos to those operating from the UK numerous times. Although a review of conditions was scheduled by the commission, and White Listing of new online casinos was suspended, the Gambling companies found the response too little and too late.
Moving to Gibraltar will decimate each firm's UK tax, dropping the rate from 15 percent to 1.5 percent. Executives with both Hill and Ladbrokes said the change was made reluctantly, and forced by the competitive imbalance.
But Gambling observer Ryan Costigan says the move may signal positioning to attack the immense USA market when a multitude of legislative and judicial measures bring about licensing and regulation of online casinos by the US.
"If these companies continued to pay the exorbitant UK tax, they would be unlikely to find a profit in the USA after adding likely USA taxes," said Costigan.
Betfair may be the next Internet gambling operator to desert, saying recently it has no plans to leave the UK, but noting its extreme dissatisfaction with the leg up its competitors just acquired.
The decision by online casino owners William Hill and Ladbrokes to move their offices from the UK to Gibraltar may be a preparation for the opening of the USA market. Gambling companies are resigned to a high level of taxation when and if USA laws are changed to liscence and regulate online gambling, and removal the high taxation in the UK could be a move toward USA profits.
The two companies had complained to the UK Gambling Commission about the uneven treatment given offshore casinos to those operating from the UK numerous times. Although a review of conditions was scheduled by the commission, and White Listing of new online casinos was suspended, the Gambling companies found the response too little and too late.
Moving to Gibraltar will decimate each firm's UK tax, dropping the rate from 15 percent to 1.5 percent. Executives with both Hill and Ladbrokes said the change was made reluctantly, and forced by the competitive imbalance.
But Gambling observer Ryan Costigan says the move may signal positioning to attack the immense USA market when a multitude of legislative and judicial measures bring about licensing and regulation of online casinos by the US.
"If these companies continued to pay the exorbitant UK tax, they would be unlikely to find a profit in the USA after adding likely USA taxes," said Costigan.
Betfair may be the next Internet gambling operator to desert, saying recently it has no plans to leave the UK, but noting its extreme dissatisfaction with the leg up its competitors just acquired.
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