Today in Britain Chancellor Gordon Brown will present probably his last budget and online gambling is expected to be mentioned. It is thought that a new Remote Gambling Duty will be introduced in an effort to persuade offshore operators that it is worth paying a low tax to benefit from a UK licence. Today in Europe six European Union countries will face pressure from the EU Commission to abolish restrictive laws on gambling.

The Chancellor’s new tax rate for online gambling operators could be in the 2% to 15% range. Opinion is divided over whether the big online operators could be tempted back to the UK as they have already built up good reputations offshore. Another possible change could be the introduction of VAT on websites where players play against each other, such as poker. This could cause some operators to move offshore to other jurisdictions, such as Malta, where low EU VAT rules apply.

Today’s action in Europe is directed at Germany, The Netherlands, Denmark, Sweden, Finland and Hungary. Restrictions on gambling operators in EU countries must be non-discriminatory, proportionate and consistent. The Commission contends that gambling operators should get the same treatment as other service providers and proceedings today could be the last move before the governments are taken to the European Court. (E-03.21.07)

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