The UK wants to become the Mecca for online gambling. Gordon Brown, Britain’s Chancellor of the Exchequer, wants to encourage online gambling companies to relocate to the UK, with full regulation and licensing.

On the flip side, the US wants to rid itself of the evil online gambling industry through the introduction of the Unlawful Internet Gambling Enforcement Act (UIGEA). Britain is planning full regulation of the industry.

The British government wants a piece of the pie generated through online gambling by companies such as PartyGaming (Party Casino and Party Poker) and 888 32 Vegas Casino-on-Net.

These companies will never relocate to the UK if they were subject to the same tax laws as land-based casinos in Britain. Land-based casinos are subject to taxes of up to 40% on gross wins.

However, it is rumored that Gordon Brown is planning to make the UK a viable option for these companies by introducing a “Remote Gaming Duty”, expected to be only 2 or 3 percent. From September 2007, online gambling companies will be allowed for the first time to apply for a UK casino license under the Gambling Act. Companies will be allowed to obtain a UK license and still base their headquarters overseas.