The United Kingdom is not looking as favorable as was once hoped for by some online casinos and gaming site operators. Not in any way discrediting the regulatory rules and standards of the UK Gambling Commission, the change in outlook is due to the fact that the remote online gaming tax, just revealed by Chancellor Gordon Brown, is much higher than anticipated. And at 15%, it would not be an exaggeration to say the remote gaming tax is drastically higher than expected.

Under the impression that the UK government would be working with gaming operators while still maintaining tough regulations, many online gaming operators are now faced with the decision to possibly seek regulation elsewhere. Operators were understandably expecting to abide by tougher regulations, but apparently, the dilemma now is just whether the Chancellor's interpretation of "tough" is considered fair and acceptable. It has been understood that online casinos and operators would have to go out of their way more to meet the regulations involving underage and problem gambling prevention. The remote gaming tax rate, however, was not anticipated to be quite this high.

John Coates, Chairman of the Remote Gambling Association, whose members include everyone from Ladbrokes to Cryptologic (In other words, the highest profile gambling companies doing business on the Web), referred to the UK government as "turning their backs" on the online gambling industry. Coates cited that with the additional corporate and VAT taxes that some companies also have to pay, the remote gaming tax makes it impossible for UK licensed operators to effectively compete with offshore gaming sites operating from other EU member countries.

The land-based UK casino gambling industry was also hit in the stomach with Chancellor Brown's probable budget statement. The gaming duty for UK land-based casinos was also raised to 15%, while higher revenue casinos have been hit with a 50% duty. Rank Plc. which operates a large chain of casinos in the UK (Grosvenor), said the new tax rate will have a negative impact on profit, which could very well be down by as must as £8 Million.

Indeed, having ceased from consulting with the gaming industry beforehand, the duty increases have been a major slap-in-the-face to UK based gaming companies. The only good news to come of Chancellor Brown's budget is the lack of gaming taxes imposed on UK licensed betting exchanges, online poker and online bingo sites.