Online gaming group PartyGaming has warned the British government that unlicensed, offshore operators will refuse to submit to British regulations unless the government clarifies how these operations will be taxed.
onlinecasino.org reports that Party has joined industry rivals 888 and Sportingbet in hailing the government's plan to regulate the industry announced at the remote gambling summit hosted by U.K. culture secretary Tessa Jowell on Oct. 31.
"No one in this industry can yet make a judgment call because there is no decision on the tax regime," Party spokesman John Shepherd observed.
He added, "Secondary licenses are something the industry will look at, but only after the issue of taxation is cleared up."
Jowell has remained evasive regarding tax-related inquiries, insisting instead that these are matters for HM Treasury.
"The benefit to the economy is less important than our priority of protecting U.K. citizens," Jowel said. "We will welcome them (online operators) here because we believe that by allowing those who want to gamble to do so over the counter, not under the counter, is the best way to protect children and vulnerable people and keep out crime."
Some industry observers predict that the acquisition of new licenses among operators based in offshore jurisdictions will be small without significant tax concessions.