Its been reported that Chancellor of the Exchequer (and Prime Minister in waiting) Gordon Brown plans to encourage online gambling companies to relocate to the UK.

News emerging from No 11 Downing street suggests Brown will push for further regulation and licensing in a bid to attract further growth in the industry here.

Counting the benefits of online gambling to the economy its believed the Chancellor is eager that the U.K. leads the way in promotion of the sector in stark contrast to legislation adopted in the United States.

America’s loss could therefore be Britain’s gain if Brown has his way.

Its understood that Gordon Brown is planning to make the UK a viable option for online gambling 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.

The online gambling industry is vastly more competitive than the land-based industry and online casinos have grown up in zero or low tax jurisdictions such as Gibraltar.

Clive Hawkswood, chief executive of the Remote-Gambling Authority, an online gaming trade body, justified the low rate of tax by explaining that a higher rate of gambling duty would "wipe out half the industry overnight".