Competition Laws in Online Gambling « Scottish Competition Law Forum
The gambling industry like any other economic powerhouse is strictly regulated by competition laws. But what exactly do the strict competition laws the gambling industry do?
First off the competition laws ensure that gambling sites don’t drastically undercut one another. Brands can still offer unique offers to other sites, mind but nothing too ridiculous like £80 to use as a free bingo no deposit bonus. It also ensures that no one site has a monopoly on the market meaning there’s equal opportunity for smaller companies to break out and make a name for themselves.
Laws also ensure a website or gambling provider doesn’t use tying methods where they sell items or bonuses on their site as mandatory e.g. you need to need to make a deposit when you sign up before you can even look at anything. This is why some websites give you no-deposit bonuses, try free games or demo modes to let you try out a few things first before you spend any cash.
Finally that there’s equal taxation amongst all sites and operators, which was actually recently improved by the passing a of a taxation law in the UK.
This new law introduced a 15% tax on profits for sites. This means operators are now taxed using a ‘point of consumption’ basis rather ‘base of supply’ to which means they’re taxed on where they provide their content rather than where they’re based.
Gambling companies must also hold a valid licence from within the UK or the White List territory that they’re based in. This was put in place as the previous law was encouraging gambling operators to move abroad to tax havens like Gibraltar where they only have to pay 1% tax.
One of the main reasons these strict regulations were put in place was to ensure that they would benefit the players of these websites. For example online gambling enthusiasts will be able to join a website knowing that their money is secure, that they’re going to be treated fairly and that they’re getting a good deal for their time and money.
So with all that considered you can see why competition laws are considered to be incredibly important to the gambling industry.
This entry was posted on Wednesday, November 14th, 2012 at 8:20 am and is filed under News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.