Volume: 10 Issue: 6
The worldwide economic situation has seen many states looking for new revenue sources, most notably by amending or tightening tax regimes for gambling activities. While most of the debate focuses on what exactly should be subject to taxation - gross profits or turnover - there are also questions arising as to the level of tax gambling services should be subject to and its impact on the operators themselves. Clearly, in this particular area, choosing a tax regime can make an important difference in terms of location, level and scope of activities for operators. Linda J. Shorey and Robert A. Lawton, of US law firm K&L Gates LLP, examine the taxation of online gambling operators by looking at the two primary methods in use - gross revenue tax and turnover tax - and offer a simple comparison of the impact of the methods at differing rates.