UK egaming bill to get second hearing
Bill from Matt Hancock MP, introduced yesterday under the Ten-minute rule, seeks to bring offshore operators back to UK.
A bill calling for a point of consumption tax to be imposed on British-facing egaming operators was granted a second hearing yesterday.
Introduced by Member of Parliament Matt Hancock under the Ten Minute Rule, the bill “ still very much at an early stage “ was brought on the premise that offshore operators are depriving horse racing authorities of funding, and consequently also looks to ensure operators contribute to the horse racing levy.
Hancock said: “I have always maintained that there is widespread support for this change. The fact that my bill has passed unanimously demonstrates this support is cross-party and widespread.”
A debate instigated by the Conservative MP for West Suffolk had prompted minister John Penrose MP to announce gambling reform plans in July last year,
The unanimous passage to a second hearing is no guarantee of the bill passing into law, but continues to raise the divisive point of consumption debate, which a number of operators consider unworkable.
At a DCMS select committee hearing last November, bet365 co-CEO John Coates warned that the fear of double-taxation as a consequence of a point of consumption tax could see even more operators forced offshore. Hancock has stated in Parliament that “18 of the 20 largest [UK-facing] bookmakers” are based overseas.
Last month a study from Deloitte, commissioned by William Hill, found that a point of consumption tax could drive players to unregulated sites and smaller operators out of business.
Concern about the development of an unwanted black market was another of the issues debated in November’s committee hearing, with bwin.party director of communications Peter Reynolds saying: “I think the more sites you can bring under the umbrella of regulation the better – if you get things wrong there’s more encouragement for illegal operators to stay illegal.”