The UK Avoiding Their Own Taxes

Published on: December 27, 2007 

For a number of years now, the UK has had it’s own government owned booking service, the Tote. The online arm of this booking service is known as Totesport. The Casino online owned by Tote the government bookmaker has made a solid business decision. This business choice will allow them to exploit a loophole in the tax code newly established by the United Kingdom. In an incredible move, they are going to be moving their base of operations to the tax haven of Alderney an island among the group of Channel Islands. As they are located between the UK and France, they are convenient to both markets in location and ability to sponsor horse-racing events.

The new laws that were applied in September 2007 were targeting a more liberal gambling regulation in an attempt to increase the already booming online gaming market in the UK. This gaming market is positioned to be the largest legal market in the country. When a company is registered with the nations oversight board, they are able to advertise and promote their online casino to the public both on the TV and through radio advertising, within guidelines. This new law was also accompanied by an incredible tax of 15 percent that is required to be paid by those who are registered, and profiting in the UK gaming industry.

Tote is in the process of privatizing their operations, however a portion of the UK governmet, which is strategicly aware of the impact the move, is still running this company. By being on the Channel Islands the remote gambling tax does not apply to them. This has many in the online or remote gaming industry up in arms about their choice to protect themselves from their own tax.

The process of privatizing Tote has been an ongoing one for more than 7 years now. Due to some financial obligations of the government to a number of the EU nations, the original process was halted in the international courts. Currently working the kinks out of a new plan that is being posed by a conglomerate of racetracks and other sports betting companies, it does appear that the right sell off guidelines are being reached. As the business end of the government’s hand in online casinos is being moved it appears to finally be in position to become a privately run entity no longer associated with the UK Government. The political advantages will be seen as the government deems it needed to appear proactive in eliminating such loopholes.

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