Cheers and Jeers Abound for New UK Online Gambling Law
Everyday consumers, once again, will not be hurt or helped by a law being implemented by a country meant to add further rules and regulations to the mostly confusing online gambling and sports betting industry.
The new law this time is from the UK and is meant to force gaming operators in any jurisdiction in which they are already licensed (outside of the UK), to obtain a license from the UK enabling them to offer betting options to UK gamblers.
The new law, which is likely to be finalized by July 1st, and which will likely go fully into effect by September 1st, will cost operators upwards of $25,000 the first year and upwards of $200,000 yearly if they meet certain dollar minimums. However, the more disputed aspect of the law will be the 15% tax on UK bettors revenue.
"The high cost of these requirements will likely create yet another scenario that will help unregulated, unlicensed operators gain a greater foothold on the industry," said CGW analyst, Ryan Murphy.
The regulations that are being cheered in the new law are the ones that force the newly licensed offshore operators to detect and report scrupulous behavior to protect against money laundering, and to help sports leagues detect cheating scandals. Also, some of the money will go to further research gambling problems and help those who need support.
There is also the possibility that legal action will be taken by prominent operators outside of the UK. According to legal experts from Outl-Law.com, such actions taken by those players could ultimately serve to severely delay the implementation of the law, keeping the status quo for a while longer.
By making licensing so difficult and creating so many costly hurdles for legitimate operators outside of the UK, those operators may choose to simply not get licensed and refuse bets to players from the UK. This will open the door to black market operators who will be more than happy to take bets from any player in the world without following licensing and regulation procedures.
"In a market that is operating so optimally already, it is difficult to comprehend the purpose of this new UK law," Murphy told us. "This could create another wild-west situation which will only serve to hurt the consumer once again."