Tony Blair had Planned to Axe Internet Gambling Architect Gordon BrownGreat Britain's dominance in the world of Internet gambling may never have happened it seems as the architect of legislation to make England a haven for the billion dollar industry nearly got axed. Reports surfaced Sunday that Prime Minister of England, Tony Blair, made detailed preparations for sacking Gordon Brown from the Treasury in the run-up to the last general election.
Brown has been instrumental in developing and pushing forward a government platform that has - at least until most recently - made the United Kingdom one of the most favorable Internet gambling jurisdictions, even prior to actual licenses being assigned.
A leaked document provides the first hard evidence that the Prime Minister intended to dismantle the Chancellor's power base, according to the Independent on Sunday.
According to the Mail on Sunday, the revelations could undermine the "stable and orderly transition" to Mr Brown which will culminate when he becomes Labour leader today, and then enters Number 10 on Wednesday.
At his final Cabinet this week Mr Blair pledged "unswerving loyalty" to his successor, but there has long been speculation at Westminster that he considered politically assassinating him two years ago, that paper reports.
The documents show step by step preparations in dealing with a radical reorganization.
Gordon Brown was instrumental in landing and retaining numerous online gambling businesses in Great Britain through a more favorable tax structure.
As part of Brown's leadership, the United Kingdom was to scrap its 9 percent tax on wagers, which was paid directly by bettors, and replace it with a 15 percent tax on gross profits that was to be absorbed by bookmakers either by Internet or phone.
Simon Clare, a spokesman for Coral, predicted at the time that, while the government and the bookmakers will likely see revenue decline in the short term, business was expected to explode over the long haul.
“The U.K. could become the hub of a global betting industry,” he said.
That boom was quick with online gambling businesses thriving on the London Stock Exchange. But in recent times, Internet gambling firms have become overly hostile to the British government.
Sportingbet's chief executive Andy McIver launched an outspoken attack on Government gambling policy last month, saying it had been run like "amateur night".
Mr McIver was speaking as the company took a relocation charge of more than £10m in its third-quarter results as a consequence of its decision to move all operations requiring a licence to the Channel Islands.
He said Sportingbet had been left with no choice but to make the move to Guernsey because "the way Government gambling policy has been handled, it's just like amateur night".
Mr McIver went on: "We have computer systems that need to be updated. If we don't meet their [the new Gambling Commission] requirements by September we will be committing a criminal offence. The problem is we don't know what the requirements are.
"We don't want to leave this country - we never did - but we feel we have no choice. You only have to look at the way the supercasino was handled."
As for Gordon Brown, he is to be announced new leader of Britain's ruling Labor Party at a special conference on Sunday afternoon.
The 56-year-old Chancellor, unchallenged to be leader, will be officially endorsed as Tony Blair's successor. He will become prime minister on Wednesday after meeting the Queen.
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Christopher Costigan, Gambling911.com
Originally published June 24, 2007 10:31 am ET
