UK Gambling Act comes into force this weekend

[The Buzz]

And a story in the Guardian rips Gordon Brown for hiking the tax rate to 15 percent, six times what operators will pay in Malta for the same advantages.

Back in the days when Tessa Jowell was happy to pose in front of a roulette wheel, the big idea was to make Britain a friendly place for online gambling operators. Unlike the blunt-headed Americans, Britain would be pragmatic: the operators would be treated as legitimate businesses if they agreed to act responsibly.

It hasn't worked. A mere 14 online poker and casino operators have registered for UK licences and virtually none is a mainstream company. The explanation is simple: nobody wants to pay tax at the UK rate of 15% of gross profits.
In the borderless world of internet gambling, the computer servers that power the websites can be located almost anywhere. To be able to advertise in Britain, an operator merely needs to be within the European Economic Area, so, guess what, Malta is suddenly popular. Tax rates in Malta have been cut to 2.5%; at the last count, 200 online gambling companies had applied for licences there. The Gambling Commission's bureaucrats in Birmingham have been bypassed.

Full story here ... http://business.guardian.co.uk/story/0,,2159567,00.html

[The Buzz]

As part of the act, professional athletes have been warned that they must not do anything that would harm the integrity of their sport (e.g., throw a game, provide inside information to bettors, etc.) or they will face a two-year jail sentence.

The (Professional Players Federation) fears sports stars could inadvertently fall foul of the new regulations. "A footballer could tell his mates that so-and-so is going to play well or score, and without realising it potentially be in breach of the law," said a spokesman. "We would like to see proper education on the implications of the act."

Buzzy thinks that this quote is an overreaction ... in order for sports betting to work, there must be integrity in the games. Buzzy likes this plan, as long as it's used judiciously.

http://politics.guardian.co.uk/homea...160200,00.html