UK Freeze Online Gambling White List

July 17, 2009 | News Category: Gaming Law

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The United Kingdom government is currently reviewing the legislation connected to the UK Gambling Act. While this review is ongoing, the UK will not be granting any new applicants White List status.

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.

The current freeze on granting White List status to jurisdictions has come after UK-based online gambling operators complained that there was a need to level the playing field in order to make it possible for them to compete with the offshore operators.

The playing field is fairly uneven at this time because UK gambling operators are paying tax at tax levels of 15% on gross profits, as well as levies that are paid by certain sectors of gambling, such as horse racing. UK online gambling operators also need to pay VAT (Value Added Tax), which foreign operators are not subject to.

Offshore gambling companies pay far fewer taxes, and have no UK levies to cover. Part of the review will take into account whether there is a way to ensure that offshore operators will be forced to contribute to issues such as the fight against gambling problems.

The Department of Culture, Media and Sports (DCMS) confirmed that the White List has been frozen, but chose not to comment on any other questions surrounding the issue. It is likely that the review will also cover such topics as the European gambling regulatory issues, since not all EU member states are complying with certain guidelines that have been laid out.

Although the review is being conducted, it does not mean that foreign gambling operators will not be allowed to advertise within the UK, but it does mean that the UK is trying to find a way to make things fair for the UK gambling operators.

The findings of the review are expected to be given to the DCMS by the end of this year.

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