NEW INTERNET GAMING REGULATIONS AND 3% TAX ON NET WINNINGS INTRODUCED IN ANTIGUA

[Bunyip]

In addition, to the licence fee and the proposed 3% tax on gross profits, is there a traditional company tax on Antigua?

[zoo]

JC,
I agree with you that I would rather have 10 books paying the government $3mm a year in total rather than 40 books paying $75k each. But your assumption is that each book would only being paying $300K. That is a fair amount. But the outline of the press release above means that there will be a few companies paying seven figures to the goverenment and that is NOT fair. There needs to be a cap to the license fee amount. No matter what Antigua does to clean up their act, a license in that country is not worth a $1mm. Sure they have the most regulated environment is the caribbean but they are a FAR strecth from European regulations and will Never get first world recognition.

Patrick

[JC]

There is no corporate tax in Antigua.

I know some books would pay more and others would pay less, I said averaging 10mm each.

While in many ways I am sympathetic to the idea of a cap, life just doesn't work that way. In the US there is not a cap on personal income tax after the first million dollars. Why should some pay millions to be a citizen here? At least in Antigua the rate doesn't go up as the amount gets higher. The more you make, the more you pay. It's 3% whether you make 1 million or 50 million. If the US set it up they would have you paying 35% (formerly 39.6%) on every dollar over $250,000.

I support Antigua in their efforts. They are trying to earn the respect that the UK has through their efforts. They should be commended not criticized.

[zoo]

The UK territory of Gibraltar has a regulatory model that does work which has attracted 3 of the top 4 bookmakers in the UK, including Coral, Ladbrokes and Victor Chandler. In Gibraltar they tax heavily but they also cap the yearly tax.

Gibraltar is very much recongnized by the UK

patrick

[scott]

It looks like a tax on the gross win not net win. No matter. To put this tax in perspective the UK is going to levy a 15% tax on e-winnings. Nevada has a 6.25 state tax on winnings and a Federal tax on gross handle of .025%. Scotty

[scott]

Imo it was a smart move by Antigua. CR is going to do the same but it wont be with the same results. They will be a little on the clumsy side when they make their move. Scotty