GC shoots Government in the foot...

For a few years now the Labour government has been trying to tempt online poker sites to set-up and be regulated in the UK... obviously they can see that they are missing out on a very lucrative tax income. It would appear that the UK Gambling Commision are not singing from the same hymn sheet...

(Copied from http://www.aworldofpoker.com/news.php?id=218)

UK Gambling Commision Bans UK Operators

UK Gambling Commision Bans UK Operators from Offering Overseas Event Seats. New ruling by the GC will change the face of satellites to overseas events for British Poker players.

UK gambling licensees were told by the UK Gambling Commission that they are no longer allowed to offer seats to tournaments outside of the Commission approved white list areas. The impact is obvious, with any UK-based operators holding satellites to non-UK poker events. The ruling was made as offering prizes outside of the UK advertises non-UK approved events, hence violating the Gambling Act of 2005.

Section 331 of the Act details that a person commits and offence if they “advertise foreign gambling other than a lottery.” Initially the clause was inserted to distinguish which operators were allowed to advertise on television, but it has since become evident it doesn’t apply just to the direct form of advertising referenced.

A release from the Commission said, that 'unless the overseas tournament is based in the European Economic Area, Gibraltar, or in white-listed jurisdictions, the advert is likely to amount to the advertising of 'foreign gambling,' which constitutes an offence under Section 331 of the Gambling Act 2005.”

It is not totally clear how the legislation will affect poker sites offering satellites to events like the WSOP, EPT and Aussie Millions, although most of the online poker rooms are not based in the UK. Statements clarifying the positions of the online firms are expected in coming days.

Brick and mortar venues will certainly be affected though, and for many of the new pub league initiatives which have come about in the last 18 months, this will be a major blow as some offer seats to the WSOP or other events abroad. Those who are found guilty of violating Section 331 could face up to 51 weeks in prison and a fine.