The UK government has set out its proposals for a â€˜place of consumptionâ€™ remote gambling tax.
The new rules, which are scheduled to come into force on 1 December 2014, will see all remote gambling firms taxed on profits made from UK customers, no matter where in the world the company themselves are based.
Depending on the type of services they offer, the operators will be required to pay either remote gaming duty, general betting duty or pool betting duty, all of which are currently set at 15%, with the rates set to be confirmed in next yearâ€™s Budget.
The new rules are expected to bring in approximately Â£300m per year in additional tax revenues.
The current system allows remote gambling firms based offshore to pay tax on a â€˜place of supplyâ€™ basis, meaning they donâ€™t pay UK gaming tax.
The new rules will be enforced via the creation of new criminal offences, with punishments including a prison sentence of up to seven years, an unlimited fine, and the loss of a remote gambling licence.
Economic secretary to the Treasury, Sajid Javid, said: "It is unacceptable that gambling companies can avoid UK taxes by moving offshore, and the government is taking decisive action to ensure this can no longer happen in the future.
"These reforms will ensure that remote gambling operators who have UK customers make a fair contribution to the public finances."