Payment Processors to Block Transactions Involving Unlicensed UK Gambling Operators
The House of Lords has rejected a proposed amendment to the Gambling (Licensing & Advertising) Bill that would have allowed the UK Gambling Commission to block financial transactions between financial institutions and unlicensed online gambling sites. The amendment was discussed during Tuesday in the House of Lords during the report stage of the bill, according to Gaming Intelligence. Members voted 185 to 171 against the amendment, meaning the current text of the bill will remain the same.
However, in light of the rejection, several payment processors have agreed to voluntarily block transactions involving any unlicensed gambling companies. Major financial corporations such as Visa, MasterCard and Paypal struck a deal with the UK Gambling commission to stop the aforementioned gambling transactions. The agreement will go into effect in December when the government's point of consumption tax rate is implemented.
The new UK gambling bill will ensure that all operators hold a UK Gambling Commission license and pay the point of consumption tax rate, which is currently set at 15%.
Gambling has been a big issue in the U.K. in recent months as House of Lords have worked on a line-by-line examination of the bill. In February, amendments were presented to the House of Lords that would enforce prison time for poker players cheating at online poker tables. The amendments, presented by former sports minister Lord Moynihan, are intended to give both police and courts more powers against cheating and increase the maximum sentence from two to 10 years.
Photo credit: SXC.hu.