| There has been feverish talk in the press | | | | government is now actively soliciting for |
| recently as to the possible effects that the | | | | business from companies who are to be exiled |
| recent criminalisation of online gambling in | | | | from the US, in a similar fashion to that |
| the USA will have on the British market. Many | | | | seen in Antigua, whose government is offering |
| have suggested that the UK government will | | | | to licence US gaming sites - albeit, of |
| follow suit, resulting in a prohibition on | | | | course, at a price. |
| the activity within British borders, while | | | | |
| others argue that this is, in fact, too good | | | | The British government has a liberal history |
| an opportunity for the UK government to pass | | | | as far as online gambling goes, as |
| up. It is argued by these individuals that, | | | | illustrated by their actions with regard to |
| if the UK were to begin attracting American | | | | the EU. As members of a common market, EU |
| gamblers who now have nowhere else to go, the | | | | member states are obliged to accept goods and |
| financial gains available to the Exchequer | | | | services (including the provision of online |
| would be too great a temptation. | | | | gaming) from all other member states, without |
| | | | prejudice. When a special exemption was made |
| Online gambling is one of the fastest-growing | | | | for online gambling, several member states |
| sectors of the service industry in Britain. | | | | sought to outlaw the practice. Britain, |
| One need only look at Betfair, one of the | | | | however, along with states such as Denmark, |
| market leaders, for evidence of this; last | | | | preferred to legislate and regulate, as a |
| year the company recorded year-end profits of | | | | result of their belief that people would find |
| $44 million, off the back of a sports book | | | | a way of gaming regardless of its legality - |
| which was only established in 2000. | | | | the state might as well, therefore, try to |
| Similarly, the taxation of online gambling is | | | | make some money out of it. |
| one of the most easily available sources of | | | | |
| revenue for the Exchequer; it is a seemingly | | | | It is for precisely these fiscal reasons that |
| never-ending stream of money which can be | | | | it seems almost certain that the process of |
| very easily taxed, particularly bearing in | | | | legalisation and regulation of the online |
| mind the general public antipathy towards | | | | gambling industry will continue apace in |
| gambling. It is this very concern as to | | | | Britain. The importance of the sector to the |
| 'social cost' of the activity, rather than | | | | Exchequer is too high; paradoxically, in |
| the potential financial gain that it | | | | fact, the outlawing of the activity in the |
| represents, that makes regulation and | | | | USA should cement this position. |
| taxation politically possible. | | | | |
| | | | Indeed, it is likely that we will see an even |
| It is the same antipathy which informs the | | | | more markedly rapid growth in the sector as |
| growing opposition to the government's | | | | American gamblers look for a similar, but |
| legalisation of online gaming. It is thought | | | | legal, gaming experience. This will have |
| in many quarters that the social cost far | | | | positive effects for the British gambling |
| outweighs the social benefits and, as such, | | | | community; increased demand will mean an |
| there are fears that the actions of the | | | | increase in the number and quality of |
| American government could pave the way for | | | | services available. Similarly, on a more |
| the outlawing of online gambling in the UK. | | | | basic level, the more players taking part in |
| However this seems unlikely; the British | | | | a game, the higher the jackpots will be, or |
| government has already expended large amounts | | | | the more competitive the odds available. This |
| of time and money establishing licensing laws | | | | can only be a good thing for players. |
| around online gambling. Indeed, the | | | | |