Clause 33 - Territorial application
Gambling Bill
9:30 am
Mr Malcolm Moss (Shadow Minister, Home Affairs; North East Cambridgeshire, Conservative)
The clause relates to the territorial application of remote gambling. At the 11th hour, those involved in offshore remote gambling are saying that there are problems with the clause and that things depend on our definition of equipment. At present, many offshore remote gambling institutions have their remote servers offshore, although they run the business from this country, as a result of which their management teams, offices, administration and banking facilities are here. If the clause catches all the operations—an all-in or all-out situation—the institutions say that they will probably move their whole operation offshore, in which case jobs and facilities will be lost here.
In the uncertain period before the Bill kicks in as an Act, there is a big question mark, especially in relation to the taxation regime, over whether the institutions should come in or stay out. Until the institutions know that, they are not willing to make firm decisions and, to avoid a remote gambling licence kicking in during the intervening period, they might move everything offshore.
We must consider what the Government mean by subsection (4)(a) to (d). Paragraph (d), for example, says:
''to accept payment in respect of gambling''.
Most internet gambling is carried out through banking systems onshore in this country, and the Government seem to be suggesting that everything related to the businesses would trigger the need for a licence. It would be helpful to have on the record what the Government intend by the provision and to know whether they have had discussions with the organisations involved, such as Sporting Bet and
others. We want matters dealt with in a sensible and pragmatic way to ensure that we retain at least some facilities and jobs, whether or not the final decision is to operate onshore or offshore.
I understand that, in other countries, the location of the remote server—the computer—is the key, and not the ancillary activities that may be part of the overall operation. Will the Minister explain the Government's thinking? Have they had discussions about the matter and are they aware of the concerns that have been expressed by that section of the industry? Do they intend to put such matters right in the Bill or leave them to be dealt with under the guidelines of the gambling commission at a later date?