Online gaming companies are preparing to face tougher tax after the UK government announced it will review the case for amending the taxation regime for remote gambling.

This follows last week’s announcement that the UK government intends to introduce new legislation that would call for all remote gambling operators with British customers to obtain British licences.

In a written ministerial statement to Parliament, Economic Secretary to the Treasury Justine Greening stated: “On Thursday 14 July, the Minister for Tourism and Heritage (John Penrose) announced that he proposes that the Gambling Act should be amended so that remote gambling is regulated on a point of consumption basis.

“Under this proposal all operators, whether from here or abroad, will be required to hold a Gambling Commission licence to enable them to transact with British consumers. I will review the case for changing the taxation regime in line with John Penrose’s proposal and taxing operators on the basis of customer location.

“Separately, other countries are also changing both their regulatory and taxation regimes for remote gambling. I will consider the tax implications of these developments. In particular, I will consider ways to prevent operators in the UK being subject to double taxation on remote gambling in the shorter term.”