Is it coming??.....

[Investment Exec]

River City Group published a headline today pointing out changes as follows.

Antigua Introduces Big Changes
In an effort to "enhance the value of Internet gaming licenses through greater regulation," the government of Antigua and Barbuda is introducing sweeping revisions to its offshore gaming policy. New legislation mandates software audits; minimum pay-out percentages; a special board for the Directorate of Offshore Gaming; a ceiling on the number of total licensees; and, dare we use the 'T' word…

Do we have any concern with tax issue being raised?

Thanx
IE

[Sharpie]

I think a celing on licenses would be the best plan for the Antiguan government. This would place a limit on the number of weak sportsbooks that might be out there and thus limit the number of books that go bankrupt, bankrupcies being the worst situation that could happen to the offshore industry.

Being a pure player and not an owner/manager of any offshore book, I do not have an accurate view of how large the industry is or how much more it can expand, but I already feel that the market is very diluted. Like in any growing economy only the best survive and the unsolid companies will wither away...

[Underdog7]

Sharpie - got a question for you regarding CRIS. Could you email me at udog7sb@hotmail.com, if you have time. Thanks.

[STING]

Brian touches on this briefly in our Real Audio interview that goes up Thursday evening the latest. He's in constant contact with Gwyneth McAllister and she (and her government) will do whatever it takes to stay competitive in this industry. Taxing will mean sure death so I'm sure that has not even been considered.

[OZ]

All bets in Australia have a tax on it

Northern Territory (where darwin-allsports and centrebet are base) have a tax rate of 0.5% on all bets that come from Australia and new zealand ,and 0.25% on other countries

ACT (Where canbet and megasports are) has I think about 1.25%

[Cons]

OZ, but don't these books swallow up the juice themselves?

In the UK it's a ridiculous 9%, and you choose if you want it on your stake or winnings. Some books give 2.5% tax, absorbing the juice for you. Others go offshore where there's no tax, and charge a 3% service charge of their own because they're greedy.

[Cons]

Doh, what am I talking about? The tax rate in the UK is 6.75%. Why did they quote me 9???

[OZ]

Yes, but the books still have to pay 0.25% to 2% on turnover to the state government

I think that 3% service charge on UK Punters at victor chandler and wiiliam hill goes to horse racing in the UK

[Cons]

Out of the 3%, 1.5% will go to horse racing as a "voluntary levy." The rest stays as a "service charge" that is supposed to easy a books telecommunications costs.

Apparently, the 9% tax exists, so know I don't know who uses 9% and who pays 6.25% As we all bet offshore I don't suppose it matters anyway...

[Stanley]

Cons, are you sure it's 6.75% tax at British bookmakers? I must admit to not having stepped into a bookies for a couple of years (since I found tax-free internet betting), but I hadn't heard of any reduction in tax. Or is it that 6.75% of the bet is tax and the remaining 2.25% is the UK horse racing levy?

As for the 3% 'service charge', I agree it's scandalous. Sportingbet don't impose it and I was told that if you called VC on their UK freephone number you'd pay the 3% charge, but if you called them on their international number, you'd wouldn't have to pay the charge. One law for the gullible British punter and another for everyone else :O

[Investment Exec]

Actually Sting, i was not really looking for answer from yourself or Brian, i was looking for an online opinion or feedback from the sportsbooks themselves..thanks anyways.

IE

[Cons]

Stanley, VC has two sportsbooks, and the one catering to UK clients charges the 3% levy. UK clients can use www.superbook.com and bypass the levy, and even get less juice on certain events.

But I agree, the 3% is ridiculous. There's a few books that have moved offshore and still charge the 3%. Almost every business in Britain rips off the cunsumer, and they all work like a cartel. Just look at the automobile market... I'm sure the sportsbooks all sat down and agreed on the 3%. I bet they're no happy with Sportingbet for dropping the tax altogether...