Finance Bill

I echo the hon. Gentleman’s penultimate question about double taxation on Mecca bingo, which is being raised in my constituency, where such a facility exists. My constituency contains two casinos and the excellent Dunstall Park race course, where quite a lot of gambling takes place. The city of Wolverhampton was one of the 17 locations for a casino that were put forward by the commission. Given the configuration of the city, it is likely that were such a casino to come to Wolverhampton, it too would be within my constituency—at third casino, to complement the two that we already have. I want to ask the Financial Secretary some perhaps disparate questions about schedule 1. It inserts a series of amendments to part 2 of the Betting and Gaming Duties Act 1981—new section 26A, and so on. For ease of reference for hon. Members, I shall refer to the proposed section numbers to be inserted by schedule 1. Proposed section 26A(1)(a) includes ““the internet”” in the definition of remote gaming and what would be liable for remote gaming duty. Subsections (5) and (6) of proposed section 26J refer to the fact that the commissioners would be able to register a ““foreign person”” for the purposes of a remote operating licence. Everyone involved would have to have such a licence. Schedule 1 clearly contains extraterritoriality. The hon. Member for Wycombe (Mr. Goodman) referred to companies in different countries. I believe that this sort of gambling activity has been banned in the United States and that several such companies have moved to central America as a result. The tax rate would be 15 per cent, as provided for in proposed section 26C(1), in contrast to the rates of up to 50 per cent. that would apply for gaming duty generally, as provided for in clause 7(1). That is quite a discrepancy, which presumably has something to do with encouraging foreign operators to come to the UK, because I imagine that an intensely competitive environment exists around the world in this regard. I suggest to my hon. Friend the Financial Secretary that the extraterritoriality will be rather difficult to police. As far as I can see, the definition of a person who provides facilities for remote gambling is not in the Bill. Proposed section 26A(3) states:"““In relation to remote gaming duty ‘P’ means a person who provides facilities for remote gaming.””" One interpretation of that, and in particular the noun ““facilities””, could mean that credit card companies are included. I have never indulged in this myself, but I would venture that most remote gaming involves the use of a credit card. Indeed, I believe that the way in which the Government of the United States of America have been able to clamp down considerably on such activity is not so much directly on the remote gaming companies as on the credit card companies who facilitate the transactions. Will the Financial Secretary tell me whether the intention of that provision is to cover credit card companies? My understanding of the way in which such transactions work suggests that they would facilitate the provision of remote gaming. If that is the case, does he intend that credit card companies, as such facilitators, should be charged 15 per cent. on the profits that they make—the gross profits—from such transactions? My final point relates to my intervention on the Financial Secretary during his opening remarks. It concerned clause 7(2), which increases the rate of duty that applies to unregistered gaming from 40 to 50 per cent. In the light of the extraterritoriality contained in schedule 1, is it the Government’s intention that organisations abroad that provide remote gaming for UK residents and make profits thereon, and fail to register under the provisions of schedule 1, should be charged not the 15 per cent. rate set out in the schedule for those who are registered, but a 50 per cent. rate for providing unregistered gaming? If it is the Government’s intention to charge that punitive rate for those abroad who fail to register, how will it be enforced?