The UK gambling industry faces a crucial moment as the government proposes changes to remote gambling taxation. Stakeholders are being urged to participate in a consultation to shape the sector’s future.
Key Takeaways:
- UK government considering consolidation of remote gambling tax rates
- Industry fears potential 21% or higher duty across all verticals
- Participation in consultation crucial for viable tax regime
Proposed Tax Reform Sparks Industry Concern
The UK government’s proposal to consolidate the current three-level tax rate system for remote gambling has raised eyebrows in the industry. Currently, operators face different duties: Remote Gaming Duty at 21%, General Betting Duty at 15%, and Pool Betting Duty at 15%. The proposed reform aims to bring these under a single rate.
Zoe Feller, a partner at law firm Bird & Bird, emphasized the importance of industry participation in the government’s consultation. Speaking at a global gambling webinar, Feller stated, “The fear is that all of the single tax [rates] will be applied at 21% but obviously there’s an even worse case scenario, which is that they go for an even higher rate of tax.”
Potential Impact on Sector Viability
The proposed changes have sparked concerns about the sector’s economic viability. Feller warned that if the duty becomes too high, it “could make the whole sector become economically unviable.” This sentiment echoes throughout the industry, with stakeholders worried about the potential consequences of increased taxation.
Call for Industry Engagement
Feller strongly encouraged industry players to engage with the consultation process. “I would really encourage people, either through representative bodies or in their own right, to answer the questions in the conduct and give the government more information,” she said. The consultation is open until July 21, with the government expected to finalize plans in its 2025 autumn budget.
Wider Industry Concerns
The Betting and Gaming Council (BGC) has also voiced apprehension about the proposed reforms. BGC CEO Grainne Hurst warned that higher taxes could be “self-defeating” and potentially fuel black market expansion. Gambling consultant Steve Donoughue highlighted the risk of players moving to illegal operators offering more attractive odds.
Looking Ahead
As the consultation unfolds, the gambling industry faces a critical period. The outcome of this process will significantly shape the future of remote gambling in the UK. With potential implications for operator profitability, market competitiveness, and even the growth of the black market, stakeholders are urged to make their voices heard in shaping a tax regime that works for both the industry and the government.
I remember the first time I saw Kai Tak, Hong Kong’s gambling city, I thought I was in a fairy tale. All the lights blinking, the music and the monumental buildings, what 9-year-old wouldn’t think they’ve come to a magical place? It was my father who brought me, dragging me along and when inside I was hit by the smell of frying duck. As soon as I hit 21 I returned to Kai Tak, A bit nervous to see if my mind had embellished the memory, but it hadn’t. Kai Tak was still a magical place. I decided I wanted to spend as much time as I could at this place, so I did.
