House of Lords examines tax bill in UK
The new UK Gambling (Licensing and Advertising) Bill has taken another step forward after it was confirmed that it is to undergo further examination in the House of Lords.
Yesterday, the House of Lords began a committee stage of the bill, a process in which it will be examined in detail. Despite the lengthy line-by-line examinations process, the government said that the bill is still on track for implementation before the end of the year.
If approved, the legislation would require all online gaming companies in the UK market, regardless of where they are based, to hold a UK Gambling Commission licence. The current system only requires UK-based companies to hold a licence, while those located outside of the UK are regulated by the jurisdiction in the country that they are based.
The new reforms would demand that all online gambling firms operating in the UK pay a point of consumption tax, an amount that currently stands at 15% of gross gaming revenue.
The new proposals would also require companies based outside of the UK to inform the UK Gambling Commission of any suspicious betting behaviour that involves UK customers.
The bill first came to light when it was granted a first reading in the House of Commons on May 9, 2013. The new bill was granted a second reading on November 5 and as later the subject of two debates in the House of Commons on November 12 and 19.
After third reading in the Commons November 26, it was passed on to the House of Lords a day later for a first reading, as reported by iGaming Business.
The House of Lords then took a second reading on December 17 before deciding to push the bill forward to the committee stage.