Tax Legislation for Luring Online Casino Operators
It may surprise you to learn that the legality issues surrounding the online casino industry is not the only reason why online casino operators have chosen places like Gibraltar to run their operations from. These places do not enforce high taxes, allowing online casino companies to maximize their profits. Realizing the enormous earning potential, countries like the UK who have already regulated online gambling are working on a new tax policy that will be attractive enough to draw in online casino operators.
Victor Chandler, the head of the Victor Chandler Online Casino Group, has went on record saying that he would favorably consider moving his online casino operation from Gibraltar to the UK. Chandler conditioned such a move on the fact that Britain would have to instill a new online gambling tax reform more favorable that the one available in Gibraltar. UK officials have already started legislation to accommodate online casino operators. However, it appears unlikely that it will be able to compete with places like Gibraltar.
Chandler publicly stated, “For an online casino operator like me, the only way they’d stand to get us back to the UK is through what I’ve got here, corporation tax, like any other business, and nothing else”. Chandler also added, “It will be interesting to see what the (UK) government does because they could end up making laws to ensure the online casino industry is properly regulated but then, if they get the tax system wrong, they’ll have virtually nobody to regulate because everyone will stay where they are”.