Online gambling companies have condemned a new 15% tax set by Gordon Brown. The rate, which takes effect from April 1, is in line with tax imposed on other forms of gambling but is much higher than the two to three percent for which online gambling companies had lobbied. John Coates, chairman of the Remote Gambling Association, said in a budget response statement: "The UK has effectively turned its back on the industry. It will now be almost impossible for a UK-based operator to compete with offshore businesses." He noted that a lower tax would have encouraged a more regulated and lucrative market, attracting offshore operators to the UK. A Treasury spokesman responded by insisting that the rate simply brings online gambling into line with the rest of the industry, emphasizing that "the UK cannot and should not try to compete with tax havens."