** Will tax free betting (uk) create more outs? **

[Jeff]

Tax free betting should be a reality in the uk come this October.

As most know, betting shops in the uk are on every street corner.

Some of those companies, are quite large. We know about the William Hills, Victor Chandlers and Ladbrokes, but what about some of the others?

Will they try to increase their handles by taking more action on North American sports?

Or are their laws or other taxes that apply if they take wagers from out of the country?

[scott]

Jeff, from what I understand the purpose of the tax shift is for the UK to be the Global leader in e-betting. The bookies will now pay a 15% tax on the win and relieve the player of any tax burden. They want the bookies who fled the old tax situation to come back. The outs should increase since they want business.
Scotty

[Cons]

Some books will return but others won't. You have to remember that by staying offshore they can still save money by not having a 15% tax on gross profits levied on them.

Those that return will of course be able to take bets from abroad and that will not cause any extra tax. I don't see any reason why they shouldn't take bets from America, unless they have US ownership like Ladbrokes (Hilton Group). But as far as the others are concerned, being licensed in the UK means that the American gov't won't dare lay a finger on them.

[This message has been edited by Cons (edited 05-12-2001).]

[scott]

Cons, Are the laws/regs written yet and if so how is the subject of jurisdictions addressed? Thanx
Scotty

[Cons]

British bookmakers are subject to British law, and all bets struck on servers within the UK come under its juristiction. Thus, British companies can legally take bets from anywhere in the world. The US gov't might have been tough on Jay Cohen, but it would never arrest anyone from a British company taking bets from the US.

The main reason why Jay was targetted is the fact that he is a US citizen. The US can do what it likes with its own people, just like China can decide the fate of its own citizens. But as soon as someone is a foreign national, the situation becomes much more complex.

The US Department of Justice doesn't have the balls nor the power to lay a finger on anyone from William Hill for example. It is simply powerless - it won't even dare 'consider' the possibility of taking any action as there is absolutely nothing it can do. What's sad is that they go after people like Jay who are doing exactly the same thing: accepting bets form the US. I can't believe Jay could be facing prison for running a legitimate business offshore.

The US is already in the record book as the country with the largest percentage of its population in prisons - you'd think that they have better things to do than chase honest entrepreneurs...

[Rich]

Yes america is the best at putting people in
jail, and executing people somthing us Americans are really proud of in addition toputting in the white house a man who is
the biggest legal serial killer in modern times, his victims include people with a
mental IQ of a 7 yearold, (america and Kurdistan are the only 2 countries where it's
legal for the goernment to murder retarted
citizens) would it reaaly be a big surprisefor America to try and impose it;s
morallity onother nations oh not us after
all it's we that blame South Ameirca for
our drug habits....it will never end......
not with Jay Cohen

[Bookiebar]

Doubtfull, the tax will just be absorbed in the terrible odds they offer. The "british" books based off shore currently are tax free but they still offfer horrible odds for US sports in general. Try -118 on a NBA spread..