UK Online Gambling White List No more

The UK will make changes to its online gambling laws, replacing the "White List" system, which recognized licenses granted by certain jurisdictions as if issued by the UK, with its own requirements for licenses. Economic Development Minister, the UK official responsible for gambling, John Penrose, has announced today.

In news that follows the recent US crackdown on online poker sites and the subsequent suspension of Full Tilt Poker's license by Alderney (a "White Listed" jurisdiction), it was clear for quite some time that the UK will make changes to its remote gambling laws.

The changes could not be more fundamental, or "sweeping" as they are referred to across the internet, forcing companies accessing the UK gambling market to apply for a UK license.

The current system allows operators licensed in the European Economic Area (EEA) as well as in jurisdictions that the UK Gambling Commission "white listed" (recognized as legit) to sere UK consumers.

The new system that will replace it is similar to those established in France and Italy, countries that do not settle for any offshore license, and instead require domestic licenses.

The changes are intended to bring greater protection for British consumers using overseas operators. With these changes, UK players will not have to deal with licenses in foreign languages.

It will also assist local companies, which must compete with foreign companies that do not pay similar taxes. As Mr Penrose said in his statement: "Overseas competitors benefit from access to the market in Great Britain without bearing a fair share of the costs of regulation, or of research, education and treatment of problem gambling."

Calls from the right (the Conservative MP Matthew Hancock, for one) have even demanded all gambling companies to operate from within the UK, but that is less likely to happen. Instead, the Gambling Commission will have to slowly replace the White List, while still respecting legitimate jurisdictions and operators.