Global Expansion of the Online Casino
Current world wide online casino profits estimate at £5 billion a year, with a prospective increase to £12 billion by 2009. These profits derive millions of pounds worth in taxes. Why then, do countries such as the UK and the United States not try to bring online casinos into their own markets? The major internet gambling hubs are presently located in such countries as Gibraltar, Aderney and the Caribbean, where businesses are not over taxed; thus retaining larger profit margins. It seems only logical that, by providing tax cuts to the online casino, many countries would see an increase in web based casino businesses.
Such prominent groups, as the Victor Chandler Corporation, have already stated that if allowed tax breaks, they would gladly spread their establishments’ globally. The US has yet to legalize online casinos, and the UK has set many laws which limit both advertisements and tax exemptions. But with the potential for such large scale tax earnings, these laws and regulations seem unfounded. Recent surveys have shown that the majority of online casino gamblers are US based. And increased interest in gambling is bringing in more and more players on a world wide scale; specifically those players based in the UK and other European countries.
The benefits of tax exemptions, which will bring in online casino firms, certainly out weigh any negatives. And unless legislation is changed, those companies located within the UK are bound to move their businesses elsewhere. There is no reason to let outsourcing continue when governments all over Europe and North America can only gain financially. With online casinos net worth in the billions, and increasing yearly, these countries need to reconsider what they believe to be ethical.