The tax regime on online gaming will have to be very low if the UK wants to be successful in attracting off-shore operators, according to the Chairman of the British Gambling Commission in the Financial Times.

Most of the online gaming sites are currently based in soft jurisdictions, where corporate tax rates are as low as 0%. Although the British Gambling Act of 2005 is the first law of a main jurisdiction to specifically allow online gambling, many doubt whether off-shore operators will move to the UK if they have to pay higher taxes.

Advantages other than taxation that the UK may have over off-shore sites are the improved facilities and manpower, the greater trust factor for consumers and investors and the proximity to suppliers or owners.