London - The U.K.'s finance minister plans next month to propose awarding offshore Internet gambling firms a British license in return for a tax as low as 2% or 3% on their revenues, London's Daily Telegraph reported on Friday.

Finance Minister Gordon Brown's proposed Remote Gaming Duty would allow online gambling firms like PartyPoker, 888 and Ladbrokes based in Gibraltar and other overseas locales to operate legally under British law, without having to pay the customary value-added tax on their gross wins, as do brick-and-mortar casinos.

The proposal would effectively tweak the tax-related elements of the U.K.'s Gambling Act, under which gambling firms will be able to obtain British licenses beginning in September -- provided they pay the higher value-added tax.

"It's quite a breakthrough," John O'Reilly, head of online gambling at Ladbrokes, told the Daily Telegraph.

O'Reilly added that if the tax rate was less than 3%, the company would sign up for a U.K. license.

Related Links:
http://tinyurl.com/2sny2g (London Daily Telegraph)

http://www.ladbrokes.com