The head of the Isle of Man’s online gambling regulatory body has voiced his opinion on the UK’s point of consumption tax for online gambling, saying it will have little impact on businesses based on the Isle.
Peter Greenhill said that most of the players using companies based in the Isle of Man are from outside of the UK, meaning that there will be little impact on the operators present.
Greenhill went on to discuss the relationships his group has forged with the UK as well as noting the key advantages firms operating within the Isle have when it comes to online gaming. One of those advantages is that bets don’t have to take place on UK based servers, meaning that the Isle’s businesses can retain their current structure.
“The legislation also requires offshore licence holders to either appoint a UK based Financial Representative who, at great expense, will take responsibility and personal liability to pay UK Her Majesty’s Revenue and Customs the taxes owed, or may negotiate to pay 6 months duty in advance,” Greenhill said. “The positive news as far as the Isle of Man is concerned is that we have negotiated an arrangement with the UK tax authorities that UK facing operators licensed with us do not need to take on this vast expense. This represents a major saving over other jurisdictions.”
The daily fantasy sports market in the United States has absolutely exploded over the past couple of years, and the Amaya Gaming Group has gotten in on the action with their StarsDraft brand. Coming off of the legacy of PokerStars and the "bad actor" reputation that it gained, they were very careful about where they allowed their games to run on a state-by-state basis.
The Isle of Man is known for being one of the most reputable jurisdictions for online gambling in the world. It's where some of the biggest names have been based in the entire industry, and it's well-respected by everyone involved in the industry in any way. A recent report has shown that they have been growing quite a bit in this industry over the past year, and they generate a ton of revenues and jobs from it.
Competition With Insurance
One of the main problems facing the online gambling world is that there are no unified rules about what should and shouldn't be allowed. There are no standards of behavior or for licensing, and because different countries have different rules on taxation, it wouldn't necessarily be helpful if they did. It's been a long time coming for countries to start working together more on this issue because independent licensing and accrediting groups can only do so much.