Online Gambling, Casinos, Poker and Sports Betting Magazine

Countries Urged to Tax Online Gambling

According to a new report published by KPMG, the global accounting and advisory group, many of the world’s governments may benefit from relaxing online gambling regulation as increased tax revenues become more of an incentive.

The report, which levels its findings at the Australian government in particular, predicts that the international online gambling market will grow by up to 42% by the year 2012, meaning that some $30 billion in revenue could be generated.

As such, KPMG speculate that further relaxation of current gambling laws would allow the industry to expand and many governments to profit as a result, while at the same time ensuring the fairness and legitimacy of their local operators as well.

Two cases in point cited in the study are China and Korea. China is currently a huge market for online and land-based casino gambling, but currently its land-based opportunities are limited to Macau while online gambling is altogether prohibited.

Korea, meanwhile, is one of the world’s biggest markets for online multi-player games – with many of its gaming customers potentially also interested in online gambling as well – yet online casinos are currently completely banned in the country.

“While it’s difficult to predict political and legislative action,” the report stated, “many markets that now ban online gambling could easily change their laws to authorize what is now an underground economy and vastly increase tax revenue”.

The report went on to conclude that many countries could benefit from their advice and urged the Australian government to consider their findings when reviewing the 2009 draft recommendation to repeal the prohibition of online gambling activities.