‘Kite Marks’ for Online Gambling Could Encourage Operators to Obtain License in UK

Written by:
Gilbert Horowitz
Published on:
Jul/24/2012
‘Kite Marks’ for Online Gambling Could Encourage Operators to Obtain License in

Regulators in the United Kingdom have proposed using a “kite-marking system” as a means of encouraging operators to seek regulation there.

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"We recommend that the Gambling Commission should consider, as a part of efforts to communicate to online gamblers the potential risks to their funds, introducing a kite-marking system for gambling websites, indicating which sites are regulated in the UK," the committee said. "This could protect consumers by encouraging them to use UK-regulated sites and by incentivising suppliers to choose to be regulated here."

Whether “kite-marks” is enough of a motivation to drive operators back to the UK remains to be seen.  High taxes forced many of the country’s big name betting firms overseas in locales such as Gibraltar, Alderney and Isle of Man. 

The House of Commons Culture, Media and Sport Committee recommended that the Government should "look to encourage operators to base themselves in the UK" while setting up a 'point of consumption' (POC) tax rate that does not lead to an increase in unregulated betting.

Offshore operators are not currently required to hold a license in order to take bets from those gamblers living in the United Kingdom. 

"To give certainty to online operators, and their investment plans, we urge the Government to adhere to its timetable for implementation by December, 2014 and to make plans to deal with any challenges to the proposed new system," the committee said.

"However, the Treasury still needs to work with industry stakeholders to establish the correct level for online gambling taxation, taking into account the need to encourage companies to accept UK regulation and taxation and to discourage the formation of a grey market."

- Gilbert Horowitz, Gambling911.com

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