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UK gaming to be 'mark of quality' UK gaming rule bid 'not tax grab'
(about 3 hours later)
Online gambling sites registered in the UK would offer a "hallmark of quality" to people around the world, Culture Secretary Tessa Jowell has said. The government's attempt to regulate the online gambling industry is not a bid to "grab" tax revenue, Sports Minister Richard Caborn has said.
Signing up to the UK's regulatory code would enhance the sites' reputation and protect players, argued Ms Jowell. Instead of banning it as in the US, the UK is to be the first major country to offer online gaming licences.
The UK hopes to become a "world leader" in internet gambling following a US ban on the activity, press reports suggest. Mr Caborn says the move is designed to protect punters and rid online gambling of crime - not to "grab" tax revenue.
About 30 countries have pledged to ensure online gambling is not a source of crime and to protect consumers. He was speaking at the opening of the first international summit to discuss the global impact of online gambling.
'Tough codes' ONLINE GAMBLING About one million people in Britain gamble regularly onlineThis represents almost a third of the 3.3 million across EuropeEuropean gamblers spend £3.5bn a year on online gambling - more than £1,000 each on averageThere are more than 2,000 gambling sites around the world, of which 537 are in Antigua and 474 in Costa RicaThe UK hosts 70 sites, but none of these offer gaming, such as poker or rouletteWomen represent an increasingly large part of the online gambling market, accounting for 30% of visits to UK sites during the World CupSource: Independent study for DCMS
They were meeting at Ascot racecourse to discuss the UK plan and possible international standards. About 70 online sports betting sites are based in the UK but there are currently no online gaming sites, offering poker, blackjack and other games.
"We are creating a regime which for the first time will make it possible for online gambling sites to be registered in the UK. Most of these are based in off-shore in tax havens such as Gibraltar, Antigua and Costa Rica.
ONLINE GAMBLING About one million people in Britain gamble regularly onlineThis represents almost a third of the 3.3 million across EuropeEuropeans spend £3.5bn a year on online gambling - more than £1,000 each on averageThere are more than 2,000 gambling sites around the world, of which 537 are in Antigua and 474 in Costa RicaThe UK hosts 70 sites, but none of these offer gaming, such as poker or rouletteWomen represent an increasingly large part of the online gambling market, accounting for 30% of visits to UK sites during the World CupSource: Independent study for DCMS Culture Secretary Tessa Jowell has said she hoped some firms would now consider moving to the UK - which she said would be seen as a "hallmark of quality" for online gaming.
"That's not possible at the moment, but we do hope it will become a hallmark of quality for those companies that do register in the UK," she told BBC News 24. She agreed there would be potential tax benefits for the UK but insisted the government's regulatory bid was mainly driven by public protection.
She added: "By being licensed, we have signed up to the very tough regulatory codes to protect the public and that in time will be very good for their reputation." "The benefit to the economy is less important than our priority of protecting UK citizens," she told reporters at the summit.
Banning internet gambling would only drive it "underground" and fuel crime, she argues. Treasury deal
Ms Jowell, at a press conference, said: "The course of action that we, the UK government, have taken is to develop a framework of regulation which I think will be regarded as potentially the toughest in the world, except in those countries that ban gambling altogether." Mr Caborn admitted some companies could be reluctant to operate under such a tight regulatory structure.
New US laws forbid firms from taking internet bets, and bans banks and credit card firms from allowing web payments. "We have not gone round the world (to online gambling firms) and said, 'Will you come back to the UK'. Whether they come on board or not is another issue," he told the gambling conference at Ascot racecourse.
'Driven underground' He said it would be down to the Treasury to come up with a tax deal that would prove attractive to operators - or not.
Ms Jowell told BBC Radio 4's Today the American approach was "the new prohibition" - referring to US efforts to ban alcohol in the early 20th century.
"Our concern is that if internet gambling were to be prohibited, it would be driven underground and precisely the kind of protections that we want to extend to people would be impossible."
I think it's a complicated and ambitious project the government has started on but I think well worth doing Adrian Scarfe, Gamcare Schoolgirl tests web gambling 'My struggle with gambling'
Ms Jowell said she believed that Britain's regulatory approach had won a "consensus" of support from organisations working with gambling addicts as well as the industry.
"I think the industry realises that, if they want to be accepted in this country, they are going to have to live by very high standards of social responsibility that we are going to require as conditions of licences," she said.
Adrian Scarfe from Gamcare, an organisation which offers advice to gamblers, said he welcomed the moves.
"I think it's a complicated and ambitious project the government has started on but I think well worth doing," he told BBC Radio 5 Live.
"Basically it's much, much better to have regulated gambling than unregulated gambling - that goes without saying.
International standards
"We would much prefer people, if they are going to bet online, or gamble online, to do on sites that are well-regulated and socially responsible."
The summit will focus on the challenges posed by remote gambling - online and via mobile phones - including the protection of children and vulnerable people.
The possibility of internationally agreed minimum standards is also on the agenda.
HAVE YOUR SAY Adults should be permitted to waste their hard-earned cash in whatever way they see fit Red Planet Send us your commentsHAVE YOUR SAY Adults should be permitted to waste their hard-earned cash in whatever way they see fit Red Planet Send us your comments
Under UK government plans, a Gambling Commission would vet sites, giving official approval to those with the best working practices. "You can either tax them in, or tax them out," he told the BBC News website.
Under the UK government's plans, a Gambling Commission would vet sites, giving official approval to those with the best working practices.
Operators would not be allowed to target children and would have to keep customers informed about how much money they had spent.Operators would not be allowed to target children and would have to keep customers informed about how much money they had spent.
'Ambitious'
Key staff, such as managing directors and finance managers, would also be checked for links to organised crime.Key staff, such as managing directors and finance managers, would also be checked for links to organised crime.
Shadow culture secretary Hugo Swire said action was needed on remote gambling. Adrian Scarfe from Gamcare, an organisation which offers advice to gamblers, said he welcomed the moves.
"Warm words will not help those thousands of families that are blighted by gambling addiction. "I think it's a complicated and ambitious project the government has started on but I think well worth doing," he told BBC Radio 5 Live.
"It is time that the UK took a lead in promoting a socially responsible approach to gambling, rather than simply eyeing up a nice windfall for the Treasury." Separate moves are also underway to secure an international agreement that would protect gamblers using sites registered in countries other than the UK.
However, sports minister Richard Caborn said regulation was not about "a grab" money for Treasury. Ms Jowell and Mr Caborn spent the day in talks with representatives from 33 different countries and are hoping to agree a communique by the end of the day setting out the shared regulatory principles upon which all 33 agree.
Ms Jowell told reporters that there was an "international appetite" to agree a regulatory structure and the ministers were hopeful of a consensus by the end of the day.
The communique sets out the broad aims of legislation in individual countries - including protecting children making gambling "fair to the consumer" and "not a source of crime".