Online Bingo operators who are based offshore are to be faced with a new licensing regime.  Following a leaked document, the DCMS have now gone on record and confirmed the proposals for a new regime to govern overseas online gambling firms including online bingo.

Gerry Sutcliffe who is the sports minister announced that any off shore gambling business that would want or have a customer base in the UK will need to hold a license and will then be subject to regulation from the UK Gambling Commission.  A consultation period will have to be done before any new measures are taken, but it is understood that UK land based bingo businesses will be involved in the process.

The new measures will require a lot of collaboration between the industries to share information on problematic gamblers and suspicious betting patterns.  An emphasis will also be put on protecting children and vulnerable people and demonstrating how the bingo companies that choose to target the UK are also contributing to research and education of problem gaming in the UK.  Many land based bingo companies are supporting the measures and already and do support the RIGT and more recently the newly formed Great Foundation (Gambling Research Education and Treatment).  Online Bingo operators will be expected to make contributions.

The Government would prefer UK Bingo firms to operate in the UK but a 15 percent tax rate is a major barrier to entry and some major companies including William Hill that were operating their online bookmakers in the UK have now moved off shore.

The new proposals will not bring off shore gaming to the UK and the levies at this stage are aimed at advertising the online gaming services.  The Government are aware that advertising is the lifeblood of Gaming firms and without it the chances of expansion are minimal. 

The new proposals could mean that a levy will be put on customers gambling online in the UK and bring online operators into line with land based operators in the UK, this will not come without the inherit problems of EU law.  It may be difficult to get the EU to agree a separate regulatory system specifically for the UK if the companies are indeed based in Europe and could get some degree of opposition from European counterparts.  The land based sector will welcome this move as they often feel short changed when observing some of the freedom the online operators have without the contributions.  It will be seen as a levelling of the bingo playing field.