During the month of March 2014, UK lawmakers authorized payment firms to block online gaming financial transactions that they deemed questionable. Empowered throughout the month of March, the UK Gambling Commission and the House of Lords also expressed disfavor for fixed odds betting terminals (FOTBs) by increasing their taxation from 5 percent to 25 percent. Accusations that gambling was addictive and websites outside of the UK left gamblers open to cyber attacks were among the reasons for change by government officials. Along with that, online horse racing communities were told that they can expect new levies in the near future.
Declined transactions for online gaming
If a website is considered unauthorized, financial institutions now have the right to deny them from communicating with UK clients according to the UK Gambling Commission. The agreement was made public by the House of Lords and was signed by financial giants such as PayPal, Mastercard and Visa Europe. Meaningful online gaming wagering websites must have the approval of the UK Gambling Commission and have this language directly on the website.
Upcoming taxation spurs foreign gaming website ban
In December 2014, new taxation for online gaming websites will be enacted by the UK government. Called a Point of Consumption Tax, it cannot work if UK punters are making wagers on foreign websites. By disallowing punters to withdrawal their winnings online through electronic financial institutions, the taxation can gather the most riches. Further reinforcement that the UK Gambling Commissions wants is to include IP-block of unauthorized gaming websites. Nevertheless, Internet service providers in the UK say they will not allow IP-blocking unless there is an issued court order.
Online gaming websites already being hit
Along with statements that gaming websites outside of the UK are going to be banned, the bookies inside the UK also got upsetting news. Already facing multiple new rule changes across various forms of betting, a horse racing levy has been proposed. Up to 10 percent of revenue produced by the gaming websites will be directed to the Horserace Betting Levy Board (HBLB). It is estimated that this will give the HBLB £80.2 million annually.
UK gaming hit may stick
The UK horse racing industry is forming rebuttals to what they feel is a brutal hike in taxation. Despite this, government officials are alleging that they will spend the money on breeding and veterinary matters. Regardless, the websites within the UK that promote gaming gambling are quick to point out that revenues are at risk. The House of Commons is due to make a vote this year that will finalize the matter.