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