The Department for Culture, Media and Sport (DCMS) is scheduled to host a conference tomorrow at Royal Ascot. The UK government is seeking international support for legal, regulated online gambling and over 30 countries are expected to send officials. The United States has declined the invitation for a representative of its Justice Department to attend, according to the International Herald Tribune.

The Secretary of State for the DCMS, Tessa Jowell MP, has been critical of the US government’s attitude to online gambling. She considers that US moves will follow the pattern of the prohibition of alcohol and lead to underground Internet gambling activity controlled by criminals – many agree with her. The UK government wants tough regulation and the conference is aimed at finding an international norm for the licensing process.

Some of those attending the conference will be representing countries keen to keep Internet gambling out of the hands of international companies. Britain is pursuing a policy of licensing the activity in order to protect children and the vulnerable, and ensure that websites offering the service are giving customers a fair deal. Guards against money laundering and problem gambling will be incorporated in regulations. Countries with state gambling monopolies are unlikely to adopt the broad code of principles being sought by the DCMS.

The UK government, having included online gambling in its Gambling Act 2005, is naturally hoping that offshore gambling operators will move back onshore and provide tax revenue in return for claiming a UK licence. If the US persists in banning online play for its citizens, it is not only the operators that will see a decrease in profit – the UK will see far less tax income than originally projected. It must also set a realistic tax rate or many online gambling companies will remain in jurisdictions that have already been recognized as protecting players’ interests whilst offering better terms to the companies concerned.
(E-10.30.06)

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