The coalition government's attempt to tax offshore gaming operators cam a step closer this week as a bill covering offshore bookmakers was heard in the House of Commons this week and scheduled for a further hearing on 30th March 2012.

The bill which was introduced by Conservative MP Matthew Hancock is aimed at reforming the UK Gambling Act 2005 and proposes that all bookmakers servicing the UK market be forced to apply for a UK Gambling Commission licence and pay taxes on revenues. In addition the bill includes scope to abolish the Horse Racing Levy.

While the bill is aimed at bookmakers it would affect all online gaming operators based offshore. The bill details that taxes should be levied on the residence of the customer rather than where the operator is based.

Conservative MP Philip Davies has opposed the bill arguing that it will result in player using black market gambling websites. He suggests that "a single digit tax system of 5% across the board would be better than trying to collect 15% from none of them".

Hancock added that the bill should take support the Horseracing industry which employs 100,000 jobs nationwide including 5,000 in his constituency town of Newmarket.

“Everyone should welcome a level playing field for gambling and racing here in the UK ".

Hancock took the opportunity to introduce the bill to the House of Commons under the "10 Minute Rule".