One of the reasons we say that the online gambling industry is a "mainstream" industry, is because of the size of the prize on the bottom line for operators. It is hardly surprising that the UK Government is re-visiting its taxation laws for this industry – during 2012 online gambling was worth more than £2 Billion; it is envisaged that this will grow monumentally. Her Majesty’s Customs and Excise hardly receives a share in this loot, as taxation mores are so tough that most UK operators provide these services to the UK-audience from White Listed, yet distant shores.

£2 Billion is a massive amount of money in an industry which grows, hour-by-hour, day-by-day, year-on-year. Now with mobile gambling being the new zeitgeist, Internet gaming is predicted to grow even more. Some remarkable growth percentages have been seen in this sector of the industry, especially during 2012, as more people get hooked up with a smartphone.

The leading gaming growth sector in the UK is currently real money sports-betting, and especially popular are the “in-play” wagers that can now be made from the convenience of a mobile phone. Just as an example – in the period 2011 to 2012, football betting has seen an increase of 69%. This makes it the second-most lucrative gaming market in the country, just a wee bit behind horse racing.

A recent study which revealed these result, also yielded other rather interesting results too. For example we now know that William Hill is in the lead in terms of market-share, but this does not necessarily mean they have the lions-share of the entire industry. 15% goes to William Hill, while Paddy Power, Betfair, Ladbrokes, and Bet365 each control the same at 11% each. 44% of the market is attributed to "other" operators.

Research is indicating that 29% of users who gamble online are using mobile devices, and smartphones to facilitate this form of entertainment. Searches for online gambling products from smartphones have also grown by 75%. This proves that the spirit of the times is for mobile gambling, and sport-betting is mostly what these users are looking for.

The Island of Jersey has now entered the race to become a licensee state. They are joining into the melee with territories such as the Isle of Man, Gibraltar, Malta, Alderney, and one or two other well-liked destinations. With so much attractive competition, the UK Government has a hard task ahead of them if they think they might be able to attract operators back to the fair shores of Pudding Island.

It is not the first time we have heard mention that tax Cuts could be looming for British online gambling ops. It is also no secret that most of these operational companies have joined the exodus to more temperate climes. Most UK online gambling concerns, even the BIG guys such as William Hill, long ago ran away to "White Label" shores such as Malta, Gibraltar, Isle of Man and Alderney.

However, this does not prevent large operators from offering this form of virtual entertainment to a UK-facing audience. Therefore the UK Government needs to find a way to bring some potential tax pounds back to the country. The best and most obvious way to do this would be to offer tax cuts. But will the Government actually enact this – that is the multi-million pound question?!

If we think about it logically, gambling is a numbers game, but then so again is collecting tax. So, we ask you a simple question, would you rather have 5% on millions of pounds of potential income? Or would you rather have 15% of nothing? It doesn’t take rocket science to see that online gambling firms have left the country to take advantage of tax shelters for very obvious reasons.

Apparently now Government Ministers are seeing the madness in the tax situation, it has taken the longest time; and is hoping to encourage operators to base themselves in, or return to Britain.
One thing that is for certain – IS – online gambling is going nowhere at all, and unprecedented growth is being seen in this industry still. Mobile gambling growth using Android, iPhone, iPad, and other tablets, and smartphones, is becoming an off-the-wall trend. This kind of growth in popularity and spending is just too good to resist not getting a share.

While the Government in the UK, mulls over the idea of tax cuts on revenues from this massive growth industry, the Governments of Alderney, Gibraltar, Isle of Mann, and so on, are all cashing in on what has become a mainstream industry. These territories are also cashing in on the perks that work hand-in-hand with healthy industry – job creation for example.

Rumour has it that taxes in the UK will be cut from 15 to 10%, but we don’t really know if 5% would make all that much of an impression. 10% does bring it in line with some other territories, but whether this will be incentive enough, still remains to be seen. The wheels of law-making turn slowly, and we all know that money likes speed. Perhaps a little less "mulling", and a little more action might be required.

We often come across news items regarding big wins at online gambling websites. These wins are often nabbed by online slots players, and we are talking about millions of Kroner, not just trifling wins. But, despite the fact that the Swedish winters are long, and online gambling is a fun way to spend those long, lonely, dark, endless nights, the Swedish Prime Minister is taking his life in his hands by proposing changes to gaming laws.

The motivation for the changes is apparently due to some stats release by the National Audit Office. The stats were released in June 2012, and changes are scheduled to be implemented by mid-2014. According to the news report, there has been an “increase in pathological gambling has been identified among certain groups of gamblers”.

While legislation will be implemented to take away certain gambling freedoms a couple of years down the line; it pays to remember that time flies fast when you are having fun, and online gambling is nothing more than having a little harmless fun. If problem gamblers are on the increase, then people are the problem, not gambling per se. This is something we have always maintained, but the real issue seems to be that competition between illegal or unauthorised gambling providers seems to be the main cause of Swedish residents gambling problems. Again, it seems to us, that people are the problem not gambling itself.

By the 31st May of this year we should know exactly what proposed law changes will be. But we have absolutely no doubt that online gambling will be affected. Changes in regulations will more than likely affect high risk areas the most, and as online gambling is a numbers game, with more numbers than ever before playing these games, it stands to reason this industry will be targeted.

However, there is some light at the end of the dark tunnel of those cold lonely nights for the Swedes. It is perceived that current legislation is simply weak in the area of social protections, so the aim is to strengthen these weaknesses, not institute outright bans. Bans in countries which disallow gambling online are often perceived to be bans on access to information, as well as an infringement of rights to choice. No radical overhaul of the present systems is to be expected.

Even state-controlled Svenska Spel was named in the report, and they are one of the very few “legal” Swedish gambling providers. Here it is interesting to note that they also have a very strong online presence. They offer bingo, casino games, sports betting and poker; live and online as well as throughout the entire Swedish entertainment industry, which means restaurants and pubs, as well as bingo halls – the lot.

They have been offering online poker through the Boss Media (now GTECH G2) platform since 2005, which makes them the only authorised product in Sweden, so, where does the “competition” factor come in? Apparently residents have easy access to all kinds of online gambling sites, so, all the Swedish Government need do is require fair individual licensing and regulation, just like nearly all of the EU.

We always think it is the kettle calling the pot black when one gambling concern takes umbrage against another for fear they will lose their business. A prime example in the USA is Gambling Billionaire Magnate, Sheldon Adelson. He is the man who made his money with the Las Vegas Sands Corporation; he is also still their Chairman and CEO. In his opinion online gambling is morally wrong, but apparently it is not morally wrong to set down 5000 slots machines, 300 blackjack tables, 150 roulette wheels, and high stakes private Baccarat rooms on his casino floors. Go figure?

Anyway the latest in a long line of green monsters with regard the online US online gambling saga, is Lottery Directors. Another bunch of hypocrites from seven states who plan to storm in on Washington to speak against a bill which might potentially allow federal legislation and regulation for this much maligned industry. It appears that the bill is to restrict the expansion of lotteries online, as well as other gambling, but will promulgate online poker. Again with this bill, we see what appears to be a morally superior stance, calling the pot black so to speak, then, sneaking in the back door.

For goodness sake, why does the Federal Government not allow all online gambling activities across the board, a law such as this would stop all this envy and dissention right in its tracks. But then the Church and other groups who believe themselves to be on "higher" moral ground, would also have something to say.

Nevertheless, these lottery official hail from Kentucky, Idaho, New Hampshire, Georgia, Washington state, Missouri, and Iowa are signed-up. They will be flying in to lobby against the Federal bill devised by Senators Harry Reid, of Nevada, and Jon Kyl of Arizona.

David Gale who is the Exec Director of the North American Association of State and Provincial Lotteries, says the Bill will restrict most other online gambling activities which leaves them out in the cold. More and more states are looking to expand their lottery operations online, but not only that, they also want to be able to offer various other casino-type gambling games. What was mentioned were slots and keno-type games. Basically random number games.

They say that the purpose of the lobbying trip was to spread the message that gaming rights are a state-specific right, and that each and every state has the right to determine what games should or should not be on offer. However, this has also never really been disputed at Federal level, we only have to look at the fact that Nevada has made online poker legal.

Apparently these lottery leaders want their individual states not only to have the power to determine the games they offer their residents, but also how these gambling games are delivered. In other words – they are concerned that a Federal bill would interfere with their power.

According to Reid and Kyl, their online gambling bill does not deserve any of this ire, it is simply in draft form at present, and they will continue to work transparently with all stakeholders.

According to the Associated Press – Harold Lovell – Finance Minister of Antigua and Barbuda, has said that they are going to pursue their long-standing dispute over online gambling with the USA. This small Island State with a population of less than 90 000, has unsuccessfully pursued this dispute since UIGEA was enacted in late 2006.

They have accused their giant northern neighbour of "hobbling its fragile economy" when they banned US punters from taking online bets and wagers with online operators. There were a great many online gambling websites which licensed their offshore operations in the Island State. Antigua says they are looking for a fair settlement according to a World Trade Organisation ruling which told them they have a valid claim.

Negotiations came to a standstill when the USA simply ignored to acknowledge their claim. The WTO dispute mechanism was then used to attempt to get the issue back onto the bargaining table. The Island State – like many other countries world-wide – are in a delicate fiscal position and feel that the matter "pushed their backs up against a wall".

At the next WTO meeting on the 17th December, this matter will be brought up on behalf of Antigua Barbuda. All things considered $176 Million is not a great deal of money, but the USA is also in a pretty cash-strapped state. At one time Antigua even requested that the WTO impose $3 billion in sanctions on the USA to force them to comply with the ruling granting them compensation. The WTO only enforced sanctions of $21 million per year.

These retaliatory sanctions against have come to be known as the David vs. Goliath trade battle. But being a small country they say it is not their intention to have a fight. However, they do believe they have the rights to protect their sovereignty as well as rely on the might of the WTO to back up their claim.

This ex-British colony once housed a thriving online casino industry, where numerous licensees employed around 3000 people and generated an income of approximately $1 billion.

Lovell says they are determined to pursue punitive action and insist that having failed through all other avenues, sanctions are the only recourse they have left. Barring a last minute settlement being made, the intention is to announce which industries will be targeted for sanction action. The US Tread Representative office has not responded as yet.

The USA is now also considering making online gambling legal, but it is taking years for the Federal Government to come to any decision. In the meantime individual states have taken the legal situation into their own hands and the State of Nevada was the first to make intrastate online gambling legal. It is believed that other states will follow suit, but what is really needed is Federal regulation and legislation.

At this juncture it is interesting to note that approximately half of the gamblers in the world are based in the USA.