Responses to UK Online Gambling

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Over the last week there have been two unusual responses, bordering on veiled threats, to online gambling in the United Kingdom. One of them came externally from the reputed and popular online gambling jurisdiction of Gibraltar and the other internally from Northern Ireland.

According to a report in the Gibraltar Chronicle, the government is peeved with the United Kingdom's plan to impose a point of consumption tax on online gambling operators. A large number of operators servicing the British online gambling market are licensed and regulated in Gibraltar. They provide a regular revenue source and direct and indirect employment to over 5,000 Gibraltar citizens. Chief Minister Fabian Picardo pointed out to the British Government that the proposed UK point of consumption tax would severely and adversely affect Gibraltar's economy.

The issue was discussed with Maria Brennan of HM Treasury during the eGaming Summit in Gibraltar. Gaming Minister Gilbert Licudi strongly opposed the implementation of secondary license from UK regulators for Gibraltar-licensed online gaming operators servicing the UK market. Licudi said that Gibraltar's licensing and regulation regime is at least as good, if not better, than in the UK and automatically ensures that UK customers receive fair and safe gaming. The Gibraltar Chronicle reported that the leading Gibraltar licensed online gambling operators and the Government are taking steps, that may include legal action, to protect the territory's gaming industry.

Northern Ireland, which is a part of the United Kingdom, is concerned over the perceived adverse impact of the growth in online gambling. Politician Alex Maskey, chairman of the Social Development Committee, has asked that the UK government update the gambling laws to adequately address the fallout from online gambling. He has also called upon his colleagues in the Stormont Executive to put pressure on British Prime Minister David Cameron and his government. He claimed that the incidence of problem gambling was increasing, because online gambling provided easy access to punters, and those drawn into it needed protection. In Northern Ireland land based bookmakers are facing competition from online betting sites and are asking for relaxations. For example they want to be allowed to operate on Sundays and are meanwhile setting up mobile phone and computer channels to be in contact with the punters.

Maskey said his committee was "in somewhat of a limbo because we are waiting to hear whether the department or the minister are actually intending to do anything". If the response is negative or there is no response then the committee would use whatever resources and connections it can garner to lobby with the concerned government department and prod them into action. In the final analysis the fallout from online gambling harms members of the public which the government represents.

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