ToteSport Casino To Defect From UK’s Gaming Regulation

Totesport Casino will soon be able to advertise without being subject to government interference. Deviating from their operations from Curacao to the Channel Islands of Alderney, Totesport will not have to pay taxes or adhere to UK regulation. Totesport is a branch of The Tote Bookmaking Ltd., UK’s fourth largest government owned bookmaker since its inception in 1928 by the Act of Parliament; the Act’s primary function for the bookmaker was to handle cash pool bets on horseracing.

Though the effort to reform UK government gambling regulations and attract online gaming through advertisements and sponsorship was made possible by the new Gambling Act, top poker and casino operators decided not pursue a UK license. The gaming sector came to their decision based on Prime Minister Gordon Brown’s fifteen percent online poker and casino gaming tax; Remote Gaming Duty. This tax is to act as a deterrent for off-shore companies wishing to carry out their gaming business in the UK. Prime Minister Brown is reported to have a very strict views regarding gambling and as Treasury Chancellor, he had made a previous proposal to tax casinos gaming profits up to fifty-percent.

This past September, The Gambling Act of 2005 became a deregulating statute of the gaming industry. The gaming and betting market will be affected by this the most which includes casinos, gaming machines, lotteries, licensed bingo, football pools and bookmaking.

The move to Alderney by Totesport Casino was strategic because of the lower tax rates. The Tote however did not make this decision lightly; they consulted with the Department for Culture, Media and Sport (DCMS) beforehand. Reportedly according to an unnamed DCMS spokesperson, “This is a business decision for The Tote. The Tote is run as a business.”

This recent move has apparently been in the works for an estimated seven years. It has not occurred until now because the European market denied their proposal supposedly due to a violation of state aid rules. It has also been reported since The Tote is in final negotiations; it will be a source of embarrassment to UK Ministers who have prided themselves since the Gambling Act of 2005, as a world leader in the approach to online gaming regulation.

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