Report Causes UK Casino Shares to Take a Tumble

10th January, 2010

Shares of some of the best uk casinos took a tumble this week, following a UK Government report suggesting new licensing regimes for offshore operators.

The likes of Ladbrokes, William Hill and Party Gaming were all hit, after the Department of Culture, Media and Sport suggested in a paper that those companies based outside of the UK, but who reside in juristrictions on the current 'white list', would still be liable to register a license from the UK Gambling Commission - if they want to market to the UK.

This comes as a blow to Hills and Ladbrokes, who recently relocated their businesses to the online gambling capital of Europe, Gibraltar - to escape the harsh tax regimes currently imposed on UK based operators.

Other recommendations in the list included the call for systems that would allow the bookmakers to share information on unusual betting patterns with UK government authorities; as well as contributing to the Horserace Betting Levy - as their UK based compatriots have to do.

A spokesman for the UK department said of the report...

'Online gambling has changed significantly in recent years with many European countries taking new approaches to regulation. It would be wrong of us to stand still where many things are changing around us - especially where the protection of British consumers is at stake.'

'The new system will also ensure that all businesses offering online gambling to our consumers adhere to our rules - not someone else's,' he added. 'The Gambling Act is already one of the best regulatory frameworks in the world and these changes will ensure that it sets the standard for all online gambling companies that target British consumers.'