Remote gambling operators based in the UK are required to hold a Gambling Commission licence while overseas operators are regulated in the jurisdiction in which they are based.
Under the Gambling Bill, all operators selling or advertising to the British market - whether from here or abroad - will have to hold a Gambling Commission licence.
Ministers believe the Bill will increase protection for UK consumers as all remote gambling operators will be subject to "robust and consistent regulation" and be required to support action against illegal activity and corruption in sport.
This would mean that, for the first time, operators based overseas would have to inform the Gambling Commission about suspicious betting patterns involving British customers.
Operators will also have to contribute to research, education and treatment in relation to British problem gambling and comply with licence conditions that protect children and vulnerable adults.