Proposed legislation to tax offshore gambling businesses operating in the UK market and introduce a tougher regulatory system has received cross-party support and is moving closer to becoming law.

The Gambling (Licensing and Advertising) Bill was passed unopposed at its second reading in the Commons and will now go forward for consideration by the House of Lords next month.

Under the terms of the bill, overseas operators in countries including Gibraltar offering gambling services to consumers in Britain will be required to hold a UK Gambling Commission licence for the first time, rather than being governed by the regulatory regimes of countries in which they are based as they are now.

The government is also proposing that offshore gambling firms' gross profits are subject to UK tax at 15%. It estimates the new point of consumption tax will raise around £300m annually. The current target for introducing the new rules and the tax is December 2014.

Culture minister Helen Grant said the legislation will make overseas operators 'the subject of robust and consistent regulation, increasing protection for UK consumers, supporting action against illegal activity and establishing fairer competition for British-based operators'.

Remote gambling operators will also be required to inform the Gambling Commission about suspicious betting patterns involving British customers.