| Online Bingo in US Hopeful for 2011; UK Learning the Hard Way |
| Written by Mark Bennett |
| Tuesday, 29 March 2011 09:09 |
|
While bingo operators and other forms of online gambling operators have been forbidden from taking deposits from US citizens in the last 5 years it appears that online bingo has become increasingly popular in the US in recent years. The American bill which was supposed to protect US citizens seems to have had the opposite effects. For Americans that want to play online bingo, casino and poker games they end up joining up at less scrupulous sites. In the UK players are protected by a white list of gambling sites. The White List status allows online gaming operators to advertise in the United Kingdom, and is granted to gaming jurisdictions that are considered acceptable. In 2007, the UK blacklisted all offshore gaming sites from advertising in any form of media from television to buses. Those countries and jurisdictions who wished to advertise in the UK were able to seek exemption and entry to the "White List" if they met certain criteria with regard to regulatory standards. The standards were set to protect the vulnerable, such as children, and also discouraged crime and helped to ensure the fairness of game play. Countries based in the UK and in the European Economic Area did not have to seek White List approval, and could continue to advertise freely in the UK. However the system in the UK is far from fair and is expected to change in the near future. UK gambling operators are paying tax at tax levels of 15-20% on gross profits, as well as levies that are paid by certain sectors of gambling, such as horse racing. Offshore operators on the white list pay a fraction of these tax levels, commonly as little as 1-2% and are not regulated by the UK Gambling Commission. The other big problem associated with legislation in both the UK and the US is that it has created the flow of billions of dollars and pounds outside of the country with no tax income and limited protection for citizens. In the case of the US this money flows out of the country illegally. In the US it is no surprise that gambling operators such as the very mighty Harrah’s, are lobbying very hard for some form of regulated and legalised online gambling bill in the states. White label UK services, as well as sports labels that deal with gambling, can understand this situation very well, and hope that there is a positive change. Industry experts expect significant changes to legislation in the US online gambling bill in 2011 and changes to the UK legislation by the end of 2012. In the US there have been numerous reports over plans that have not yet been able to achieve the support needed. However, the resurgence of Barney Frank’s bill seems to be receiving more support than any other, so maybe, just maybe, people could indeed be able to see regulated and legalised online gambling later this year in the states. In the UK it is expected that the government itself will be the catalyst for change as there is a lack of parties currently lobbying the government for change. Companies such as Gala and Rank that are two of biggest players in the UK land based gambling markets have a conflict of interests. Yes, they have land based casinos and bingo clubs throughout the country but they also benefit from their online operations being based offshore. There are hundreds of online bingo sites available to UK players, however only a couple are based in the UK. In other sectors Betfair, William Hill and Ladbrokes have all moved their operations offshore to avoid paying UK tax.
|






