UK could increase taxes on offshore gambling firms
The new budget could include a measure to raise billions through a new remote gaming duty.
UK.- Philip Hammond has been under the spotlight for quite some time, as the Chancellor is responsible for releasing a date on the reduction of the maximum stakes on fixed odds betting machines (FOBTs). Now, he’s considering increasing taxes on offshore gambling firms as he hopes to raise approximately €1.13 billion.
The tax would be paid by overseas companies that run online casino types of games in the UK. Hammond could include in the next budget the measure to increase the remote gaming duty from 15% to 25%, as the treasury gains will be hit by losses caused by the crackdown on FOBTs, as the maximum stake has been reduced from £100 to £2.
It is expected that a number of bookmakers will be hit by both changes, the FOBTs reduction and the new tax, as they work in both jurisdictions, online games and high street shops.
A recent report from the Centre for Economic and Business Research (Cebr) indicates that machine gaming duty (MGD) receipts would fall by €322 million a year but this would be more than offset by €471 million of other benefits. The report, which was commissioned by the amusement arcade trade body Bacta, showed that the Treasury is set to lose between €110 million and €148 million for every year that maximum FOBT stake remains at €110.
