Leading egaming execs call for strong Gambling Bill enforcement
Operators suggest enforcement will be just as important as tax rate to avoid black market
Egaming operators have told eGaming Review the UK Gambling (licensing and advertising) bill will drive companies into the black market if the imposed tax rate is uncompetitive.
The legislation was announced yesterday during the Queen’s Speech at the State Opening of Parliament and is expected to receive its first reading today, while a date for a second reading may also be set.
SkyBet managing director Richard Flint suggested that a sensible rate of tax would aid this enforcement. Rather than the 15% rate, Flint said that “7.5% would be a reasonable compromise” which would “ensure enforcement”. The UK Treasury confirmed today a consultation process over potential tax rates is ongoing, with the findings to be announced soon.
“The bill will be difficult to enforce, but the government shouldn’t go down the IP blocking route. It’s hard to see how penalties for not complying will outweigh the tax rate,” he added.
888 chief executive Brian Mattingley warned the bill could lead to “a two-tier regulated environment, where some operators go into the black market”.
He added that this situation “would create a significant disadvantage for the rest of us. More important than the point of consumption tax is that enforcement is strong to create a level playing field,” he explained.
Both chief executives also agreed the bill would have an impact on all operators, with Mattingley warning “it will affect bottom line significantly” and Flint highlighting the impact the legislation would have on profit and marketing budgets.
Probability CEO Charles Cohen also expressed concerns the bill would have significant consequences for smaller companies and developers due to the costs associated with complying for a licence. He told eGR companies should be afforded a “grace period” to give them more time to adjust to the new requirements. He warned that without this, legislation “may drive out innovation and reduce consumer choice”.
“There will be a really big compliance overhead for having a product re-certified,” he said. “There are a limited number of companies that can do this, it’s an expensive process at the best of times.
The official text of the legislation describes it as being “designed to extend the scope of the regulatory regime currently governing remote gambling and provide greater consumer protection for customers in Britain”.
Early details of the draft POCT legislation first came to light in December last year, with industry representatives invited to provide responses to the draft text.