In an attempt to insure that online casinos and internet gambling operators bring their servers and company headquarters to the British mainland, the Chairman of the Gambling Commission is urging the Treasury to not set gaming taxes too high for the online casinos who must pay them. The UK Gambling Bill has been under criticism for its very strict rules in the regulation of internet betting.  Some legislators fear that if the regulations are too demanding and strict, the incentives of residing in a legalized and jurisdiction of such esteem as the UK will not outweigh the cost in extra fees, such as high taxes and costly online gaming licenses.

The Gambling Commission, which has been formed as a result of the UK Gambling Bill, and has officially replaced the Gaming Board, is now advising Treasury officials on setting a tax rate for online casinos and internet gambling operators, specifically warning them to not set the rate too high.

Speaking with the Financial Times, Gambling Commission Chairman, Peter Dean, warned that if the Treasury imposes high taxes on the online gambling operators now running their businesses offshore, they will opt to stay where they are, and not bring any tax revenue at all to the UK government.

Online casinos are doing very well for themselves; Therefore, even with the incentives of operating in a legalized and regulated territory such as the UK, they know they will continue to do good business whether or not they are operating from within British land or not. 

The Treasury's argument is that more online bettors will frequent casinos and online sportsbooks that are regulated by the Gambling Commission, therefore giving these sites a more favorable and legitimate name.  However, Dean warns that if the cost in taxes outweighs this potential increase in traffic, the online casinos will remain offshore.

Dean emphasized that the key is getting these online gambling operators to relocate into the UK.  Although English citizens may be inclined to gamble at online casinos approved by the Gambling Commission, if the betting company is based offshore, online bettors will be exempted from gambling there. 

Indeed, the Commission does have some leverage in getting operators to come to the UK; However, most of these large companies are dealing with a worldwide market, and can do just fine without the help of the Gambling Commission.  This is precisely why Dean is saying that the Gambling Bill is perfectly justified in all of its regulation guidelines - it simply needs to be weary of overtaxing operators in the near future.