The transitional arrangements map out how the government proposes to move from the existing system of licences, permits and registrations to the new system of regulation introduced by the Gambling Act 2005.

The Gambling Act is considered controversial by many inside and outside the United Kingdom, because it is the first law of a main jurisdiction to liberalise the sensitive gambling sector to such extend.

For foreign governments and stakeholders, the law is also controversial as it enacts the “country of origin” principle for gambling. According to this principle, online gaming operators with a UK license would be able to offer legally (in the UK that is) gambling services to citizen living in other countries. The UK government argues that an online game takes place where the operator has its license, not the place where the consumer resides.

The closing date for the receipt of comments is 2 May 2006. The consultation paper can be found at: http://www.culture.gov.uk/gambling_and_racing/QuickLinks/consultations/