The UK government has said that new proposals to amend the existing remote gambling legislation to a ‘place of consumption’ approach will bring in approximately £300m per year in additional tax revenues, with gaming operators to be taxed at a rate of 15 per cent on profits generated from UK customers.

The changes, which are due to come into force on December 1st 2014, will mean that all remote gambling companies will be taxed on their gambling profits from UK customers, which the government claims will create a “level playing field across the industry.”

The move will affect some of the online gaming industry’s leading operators such as bwin.party, William Hill, Betfair and Ladbrokes, all of whom have their online operations in Gibraltar where taxes are levied at 1 per cent of gross profit and capped at £425,000.

The UK government believes that the reforms will help improve the sustainability of the UK’s tax base...

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