Why Are Almost All The UK Gambling Operators Based Overseas?
Have you ever wondered why it is that just about all the casino and bingo brands available in the UK are registered overseas? Perhaps you haven’t noticed? Anyway, if you’ve always wondered or even if you’ve just suddenly become curious, read on. We may have the answer.
The UK gambling market is growing rapidly and for some there’s a lot of money being made. For players, generally, the UK provides a safe place to place a bet or spin a slot due to the strict licensing requirements that the ‘UK gambling companies’ are required to adhere to.
UK Gambling Regulations
Gambling in the UK is strictly regulated by the UK Gambling Commission, a government organisation which has the power to hand out huge fines to problematic gambling operators. Any company offering gambling services to those in the UK must have a gambling license that they’ve obtained from the UK Gambling Commission. This rule applies to both the UK companies that are based on our lovely little island and those located in usually sunnier climes!
Taxes For UK Based Companies
For a company to offer casino games in the UK, there are many different taxes that will be owed to HMRC. In addition to this, they’ll also have to fork out for the Remote Gaming Duty at 15% of all profits from their bingo and casino activities – an immense sum of money in the case of the big operators!
It’s also important to remember that specific gaming taxes such as the POCT are collected on top of regular taxes such as capital gains and corporation tax to name just a couple. The sheer number of taxes a business will be liable to in the UK is the reason why some companies move offshore.
Taxes For Offshore Companies Targeting UK Customers
While offshore casino operators are still required to pay tax on things like the General Betting Duty, there are some tax benefits to having your company based overseas. For example, an operator who sets up their business in Jersey is still able to obtain a UK gambling license and target UK customers, but can take advantage of considerably lower taxes. In Jersey, there’s no Capital Gains Tax, no VAT and no Stamp duty.
These tax benefits mean that companies who are based overseas are able to save a lot more money and in turn, make a better profit. This is the reason why many operators choose to be based overseas even when they are planning on targeting UK customers in the gambling industry.
For a while now, gambling operators have seen the benefits of having their company based overseas and most of them host their sites from locations like the Channel Islands. If you take a look at any of your favourite casino sites, you’ll notice that they are not based in the UK but still hold a license obtained from the UK Gambling Commission.
So there you have it, the reason why many gambling companies choose to base themselves outside of the UK is invariably due to taxes!