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